I told you a reverse split was needed When I advocated for a reverse split over the last 2 years, I was usually attacked. Now that it has finally happened, people are starting to see the light. The only problem with the reverse split was that spineless, bone headed management took way too long to do it.
Advantages of reverse split:
- Clean up the billion share stock count. A billion shares are much to many for a small mining company.
- Create a respectable stock price. Most self respecting investors will ignore any stock priced under $1. Stocks under $1 are usually dilution machine scams.
- Attract real investors. The reasonable share count and stock price will tend to attract a better class of investors.
- Repel penny stock flippers. Penny stock flippers only exist to play games and do not help the stock.
- Allow meaningful earnings reports. Earnings of less than $.02 per share are meaningless due to rounding.
- Remove the dark cloud of a potential reverse stock split. Investors know it will eventually happen, so just get it over with.