RE:RE:Not in This Climate -And it is not just an opinion.
Historically, some 90 to 97% of such stocks doing reverse splits fail to thrive and in fact are far worse off as the price continues to fall from a higher level.
Does management anticipate poor performance of
Ely Gold Royalties?
"
How do stocks perform after a reverse split? Stocks tend to lag the market after a reverse split — that’s not surprising if a reverse split signals that management thinks the stock will continue to decline.
However, it’s worth repeating: A reverse split is an effect of poor performance, not a cause. The stock often has already been on a long downtrend, and the reverse split is just a gimmick to keep the stock on the exchange or in investors’ hands, not a real operational repair of the business.
For investors, stock splits generally should be seen as a nonevent since they don’t increase the value of an investor’s holdings. However, some research indicates that forward stock splits signal management’s confidence in a stock’s rise, while reverse stock splits signal the continued decline of the business. That being said, reverse splits rarely come out of the blue; they typically follow months, if not years, of declining stock prices."
https://www.kake.com/story/43113459/what-is-a-reverse-stock-split-and-what-does-it-mean-for-your-portfolio
Reverse splits are the shorts' dream.
https://www.stockwinners.com/blog/2017/05/11/reverse-stock-splits-destroy-shareholders-value/
"Anytime I have owned a stock that did a reverse split I got killed on it." https://www.quora.com/If-my-stocks-in-a-company-did-a-reverse-split-should-I-just-get-rid-of-all-of-the-stock-now
NO REVERSE SPLIT FOR ELY STOCK!
I will say it again. The way to get Ely's price up and rising is to acquire more quality royalties and increase the cash flow from same. I personally believe management should drop the Nevada preoccupation
for quality royalty-generating properties in any safe jurisdiction in view of the now hostile federal administration.
This IMHO is a great little company and I have held shares in it for a long time. I believe that if gold has truly turned around or if it has not, when it does, Ely shares will resume their upward trek. It would take a considerable misstep to shake me out but a reverse split would so rank.
Great good fortune to all.