Reverse Stock Split?

[Richie Rich]

If you are holding stock in a company that announces a (3:1) reverse stock split, what determines wether you should SELL or HOLD the stock?
Also to consider, the company is proposing the split to bring it in compliance with Nasdaq's $1 minimum bid requirement.
Thank you,
RR

[i_am_so_siri]

well for one if they have a history of doing reverse splits then sell. other than that a split shouldnt really effect your decision. the split doesnt change anything about the companies fundamentals. thing is the fundamentals must not be too good if they need a r/s to stay on the exchange. not many good companies need to do something like that. so the only reason you should be holding the stock, whatever it is, is if you speculate that they will grow strong or have something happen to add value.

[Z-OldEurope]

Originally Posted by i_am_so_siri

well for one if they have a history of doing reverse splits then sell. other than that a split shouldnt really effect your decision. the split doesnt change anything about the companies fundamentals. thing is the fundamentals must not be too good if they need a r/s to stay on the exchange. not many good companies need to do something like that. so the only reason you should be holding the stock, whatever it is, is if you speculate that they will grow strong or have something happen to add value.

perfect answer. If your know the company and you are sure about their growth and busines then hold. But if you only swingtrade and dont know much about them sell
Ive seen it often. After a Rs the pps goes down for the first time. It is always a reason for the Rs or Fs.

How much time till RS ?

[Z-OldEurope]

Originally Posted by i_am_so_siri

well for one if they have a history of doing reverse splits then sell. other than that a split shouldnt really effect your decision. the split doesnt change anything about the companies fundamentals. thing is the fundamentals must not be too good if they need a r/s to stay on the exchange. not many good companies need to do something like that. so the only reason you should be holding the stock, whatever it is, is if you speculate that they will grow strong or have something happen to add value.

Your Avatar car pic. Whats the name of? Looks like a European Car Model. Opel ?

[i_am_so_siri]

Originally Posted by Z-OldEurope

Your Avatar car pic. Whats the name of? Looks like a European Car Model. Opel ?

ford focus. then the white, repainted silver now, truck behind it is mine too. its a ford lightning. the blue truck is a friend of mine. every year we go around to car shows. the focus is mainly an audio car for me. at one time it was turbo but mileage got too high for it. its my daily driver.

[dcinmd]

Which company are you referring to?

CABL just went ahead with such a split.

[Richie Rich]

Originally Posted by dcinmd

Which company are you referring to?

CABL just went ahead with such a split.

OCNF
The split is 3 months out.

[USMC]

Originally Posted by Richie Rich

OCNF
The split is 3 months out.

As long as they don't dilute, as it's a Big Board already, after the split it shouldn't be a huge deal. When it approaches, it should fall and continue to fall a few days after. It should recover after that if it's a viable company.

[mjoke]

nm

[binks]

Ive never had one turn out well