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MeetMe, Inc. Message Board

  • giovanni8844_2 giovanni8844_2 Aug 14, 2013 5:45 PM Flag

    Captain A Whole. This is Why You Will Benefit from a Reverse Split

     

    Besides the obvious pros like a smaller float, becoming margin-able and most importantly a stock price that doesn't appear to the public as a stock that could be headed to the Pink Sheets at any time now. It would make the stock more manageable for investors and make it much harder for the thieving specialist from stealing shares and running stops.

    If an investor wants to take a position and put in a 5% stop loss, at $1.70 a share, all the specialist has to do is run the stock down $0.085 to trip the stop and rob investors of their shares. I have seen that happen in a single tick in this stock. Now if the stock was trading at $8.5 a share on a 1:5 reverse split, the specialist would have to run the stock down $0.425 to trip that stop loss. Yes the thief can still do it, but it will be a lot harder to run the stock down that amount in a few ticks. Think Long and Hard about that one Harvard Boy.

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