are ya fer real
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Just a little math tells me you should get rid of it and reinvest in a better company .055*500,000= 27,500-your investment 15,000 leaves you 12,500 gain that's not just a pea in the pod
ayfr |
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muncie birder
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A reverse split is not a great thing. It generally indicates that the stock is sinking and the purpose of the reverse split is to jack the price up so that it can sink some more. You invested $15,000? From what you have indicated you currently have a profit then of about $12,500. I would take the profit post haste and get out. |
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Brendan Prewitt
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I would personally sell my investment. First off, a $0.055 share means the company is not performing well at all, unless of course, the company has a lot of shares outstanding, and is actually a fairly sized company. Secondly, and maybe more importantly, you have to consider what the reverse split does. All this does to you, as an investor, is makes the market for this stock more illiquid, meaning it could be harder to exit a position if you wanted to, plus it fools investors into thinking the company may have a chance as a $0.275 stock looks better than a $0.055. I cannot see any logical argument for why a company would do this, except to try to fool new, uninformed investors, into thinking the company is worth more than it actually is. However, if you still like the company, don't sell, as a reverse split does nothing to fundamentally change the company's financial position. I, however, do not like what a reverse split signals. Just some thoughts, I hope they help.
Best of luck!
Brendan Prewitt |
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Jason F
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Nothing actually changes when this happens.
Yes, you will only have 100,000 shares, but the price will be .275 / share. It will equal the same amount the day after this happens |
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prepare2qualify
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If you are not going to make a loss sell like the wind. If you are going to make a loss then it gets tricky.
Most companies do a 5-1 to gain access to a large market ie. Nasdaq. They also might adjust the stock price to about $3.00-$4.00. It is not necessarily a bad thing to do a reverse split, that company is just trying to open up to a larger audience. If you short take your loss and run, because this stock at your position just turned into long. |
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Dude
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Are you talking about ARGY?!?!
Sell that junk. 5.5cents per share.
What if I told you that I was worth 5.5 cents per share....you'd probably laugh. |
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gosh137
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Companies that do reverse splits usually are not doing well enough to be able to increase their stock price the way most companies do, by increasing sales, earnings and value. They must increase their price by financial manipulation. If they just want to be noticed more, a stock price increase to 27 cents will not do it. I think you can find bigger companies that actually increase their value by increased earnings, and eventually put more money into your pocket. |
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Metal Fingers
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Don't do anything. Splits mean absolutely nothing.
Think of it like this. If you own a pencil and a company does a 5:1 split you still own 1 pencil, its just broken into 5 pieces.
In your case, you own the same amount of stock, just reduced shares. But that makes no difference because each share's value is multiplied by 5. Stock splits are companies trying to organize their stock, it won't help or hurt the company in any way. |
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