My friend is holding NUGT at a cost of 10.23 and he has lots of shares and i keep telling him that they wanna reverse split at 5$ in may, june...... He thinks im crazy..... He also says they cant reverse split until 2$, what do u think???
Well, as far as who is crazy and who isn't. I think it's less crazy to expect this POS to go down to $5.00 than to invest a lot of money into a single issue, a highly leveraged ETF no less, without setting a pre-defined stop loss. I hope your friend knows that 3x leveraged issues are designed for day- or short-term trading. Read about this ETF's strategy. IMHO, any of them held over 8 weeks will start showing destructive effects of decay.
This said I am sure there will be enough cheerleaders on this board who'll tell you I am wrong.
As far as reverse split, I don't see any reasons Direxion can't reverse split this issue at $5.00, say 1:5 or even 1:7. It has been known to happen to other 3x Direxion ETFs. Look at FAZ, TZA etc.