TSXV:RHT.H - Post by User
Comment by
Ziondogon Jul 29, 2021 2:21am
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Post# 33619614
RE:RE:Fanofrht
RE:RE:Fanofrht Brings an interesting problem given the amount of volatility in this stock's history. Lisa notes the plan is to eventually list on NASDQ, and thus they will need a $5.00 U.S. stock. If the company continues to perform well, down the line they may choose to do a reverse split to get us NASDQ listing earlier rather than later. That can pay handsomely IF the company is performing well. I did well on Equinox Gold a while back when they did this. If a company is performing poorly, reverse splits are a kiss of death.
I see no reason given the recent news for this stock to fall back to perform poorly. Now the back to the original thought--splits go by numbers of shares, not cost of shares. Let's say you bought waaay back when the SP went to $2.00. You don't want a big percentage of those reverse splitting 5 to 1 to cost you $10 for a $5.00 NASDQ share, you'll prefer to get a NASDQ share for less. That means those holding a bag will want to average down by buying as much as possible on dips. I don't know how many are in that boat but those who are should buy on dips to dig out of the hole. Those who bought this stock at 20 cents when it was in the toilet can decide how much they want to "average up" by buying to raise overall profits or just stick with what they have to maximize percentage gains by getting a $5.00 NASDQ stock for a dollar, and do so without even having to sell and pay taxes. I never really was in the position to look ahead to chart the best course until now. Splits came with little long-term warning. Those who know more, which are probably most readers here, give us some benefit of your experiences on how to think about this.