This will be a great test ot two competing theories
One theory says that a price over $5 attracts institutional buyers which increases liquidity and generates more interest in the stock which helps to maintain a price over $5.
The other theory says that for a small, thinly-traded stock that's currently unprofitable, perception is the most important factor. That is, if the perception was that the stock was only worth $1 or less, then a reverse-split won't change the perception and people simply won't want to pay $5 or more for a stock that, in their mind, is still only worth $1 or less. So the price will tend to head back down toward $1 (with occasional upticks on news, etc.). However, market cap is a factor here, and that will tend to keep the price closer to $5 for a while, but with this theory perception will eventually win out.
In the case of VSCP, I tend to favor the 2nd theory, and think that the price will drop below $5 until we see some solid profits (if we see profits).
I agree with you for the most part....I don't ever see this dropping to $1 again with dilution or of course a serious threat of BK.....I do think it could easily slip into the $4s.......as the pre split prices in the 40 cents range I think already reflected most this years issues.....they've already stated the second half of 2013 is not going to be anything great and looks like $2.5M revs per quarter.....so I think this thing is trading on potential for whats ahead in 2014 or even some good news from the FDA about something......it is really going to depend on how they guide for 2014 and if things start to look more promising for them......:D
C did a reverse split and it took 4 years for it to even out ...VSCP and C are not even close to an apples to apples comparison, if there is no major news or profit in the next three to six months, this will be like a rock in the middle of a pond ...