Reverse split destroyed shares holders value and cut potential
" future dividend " if any. Let's assume you own 30 000 shares @ 3.30 . If they would introduce 2 cents dividend you would be collecting $ 600 a month and stock could be trading around $ 4 resulting over 20 % price appreciation.
With reverse split of 3 you get 10000 @ 9.90 . With 2 cents dividend you are going to collect $ 200 a month and to get 20 % price appreciation stock will have to go to $ 11.90. I am glad I have reduced my position while still in green and bought more of my beaten up stocks already paying dividends. Still holding some shares in my wife's SDRSP no rush there to get rid of them but I am very disappointed.
Unless my prognosis and calculations are wrong.