Stock Market Training: What is a Reverse Split?

[@s3renity690]

I gave a like the moment i heard the first sentence. That’s exactly why i’m here lol

[@claytrader]

cheers

[@ralegade7710]

I gave a like as soon as I read your comment.

[@skrifefeil3634]

Yes. He is spot on 😅

[@hamidaittaleb825]

Straight to the point ! Thank you so much man. Very helpfull and as always.

[@claytrader]

You're welcome.

[@teekayy752]

Thanks for the lesson bro. I got too happy when XGTI did a reverse split today and almost crap my pants thinking I was profitting.

[@claytrader]

Yeah, it happens to many, so no worries lol

[@jorgetchev4348]

J

[@XxiihrsiixXx]

So there is no profit just the shares change price and stay the same value?

[@gwenthielman932]

Same here 😖 so sad

[@andrewortiz3498]

⁠@@XxiihrsiixXxyeah im so confused, i have a 1 for 100 reverse stock split. I had 849 shares and went down to like around 17 shares. If I sold my stock at the price of around say 100$. Do I still profit the same or is it bc my shares went down I profit less?

[@jericabenson857]

I was looking at a stock and researching before purchase and saw they were doing 6-1 reverse split in a weeks time. I had no idea what it was so hopped on YT. I watched 3 other videos before yours and this video was far superior and explained it so much better. Thanks Clay 😊

[@claytrader]

Glad I could help!

[@jasonmiller2726]

Absolutely perfect,answered my question completely. Couldn't ask for a better explanation :>)

[@claytrader]

Glad it could help!

[@20smogul]

You are a very knowledgeable individual when it comes to the market.

[@claytrader]

I try

[@boudoiralamode4508]

Thanks for the video. I was thinking a RS would be something like this, and after hearing you explain it, I was right, but with much more clarity from you. Appreciate it.

[@claytrader]

Thanks for watching

[@damanhagene1736]

I learned of reverse split with Aurora Cannabis. Won't soon forget it. The logic I understood but thanks for the summary at the end of the video confirming that they are generally not a good sign

[@claytrader]

Never fun to go through one.

[@Grace-zo2lg]

This made a lot of sense! Thank you. I like trading without emotion ~

[@claytrader]

Glad it was helpful!

[@johnpeterrincherarmand2788]

I thought I made a fortune today from my USO shares, i was going crazy asking what happened to my shares. thanks for this video, thought me a bunch.

[@claytrader]

Bummer!

[@kazmerejames1879]

Thanks for the info, I’m new to stocks, but question I also have USO and they did a reverse split , I bought 13 shares for October 13th $9 call does my money have a chance to recover or is it lost? It’s been at 1 cent for weeks

[@yesiem9019]

Even though after this video I wanna cry! Thanks for this easy explanation 👍🏽

[@claytrader]

Thanks for watching (and sorry for your situation)

[@joharzuber9745]

I can be a teacher now . I got everything what I needed. You are great!

[@claytrader]

Nice!

[@trytrading4103]

Thank you, i was freaking out, i am in a stock that just had a reverse split before close.

[@claytrader]

Ouch.

[@trytrading4103]

@@claytrader stock aln 2,000 shares at 0.1470. They reported a name change and reverse split. I bought in before the split announcement. I will be getting out as soon as i can and staying away from this stock. Thank you for the reply and info video.

[@claytrader]

Chalk it up as a learning experience.

[@jarrington789]

Thank you. I have CTRM and I went from 166 to 16 reverse split . A 1 of 10 split amount. That took place on May 28 this year. You explain was easy to understand. Thank you.

[@claytrader]

Glad it could help!

[@vswain47]

Thanks Clay, I have a Penny Stock that went from 12,500 Shares down to 12 Shares, after Splitting Twice, Guess I'll just hold on to it. Thanks for the explanation.

[@claytrader]

Ouch... hopefully a learnable experience for you.

[@four-x-trading5606]

Don’t invest in penny stock made to take your money

[@wearemakingstars]

Thank you for explaining this to me! I prefer the way that you broke it down rather than a chart. Kudos

[@claytrader]

Glad it was helpful!

[@bcreepy00]

The intro was super accurate

[@claytrader]

Good

[@joshuagreene5118]

Superrrr accurate

[@botis765]

I am A new Trader I have been watching videos for about 3 and I understand the way you explain it better than the other guys

[@claytrader]

Thanks for the feedback. Glad they could help!

[@liamovadiah326]

thanks man! just experienced a reverse on ACB.

[@flamarjr2000]

Liam Ovadiah lol! Me too! I didn’t know wtf just happened. My 50 shares turned into 4😫

[@idinhatam1583]

same here!!! i thought i made 10K! but its not i guess.. am i righht?

[@rickycruz2742]

Frank LaMar Jr Fr bro I had like 11 and now I don’t got nothing😂

[@Deep4kinThoughts]

ACB brought me here !

[@Brian-hv3nn]

Literally the same reason I'm here..had 200 now 17

[@jamesbrand5293]

Your stock values stay the same, however you lose your multiplier(amount of shares) you own. Great video, well explained. If any company I invest in does a reverse split then I will sell up and move on as its a fabricated way to increase the stock price in giving an illusion that a company is bigger or doing better than it actually is. Its a deceptive act as far as I'm concerned.

[@claytrader]

Thanks for sharing

[@jamesbrand5293]

@@claytrader You're welcome, thanks for doing such a good I formative video and thanks for taking the time out to reply. Much appreciated

[@claytrader]

@@jamesbrand5293 cheers!

[@darren-james-88]

Hi Clay, your 101 videos are really insightful, thank you! My question is this: Why would a company do a reverse split? How do they benefit from having less shares? Why is this an indication that the company isn't doing so well?

[@claytrader]

HIgher share prices make life easier, more on that here claytrader.com/videos/how-a-company-benefits-from-the-stock-market/

[@darren-james-88]

I'll check it out now. Thanks again!

[@claytrader]

You're welcome.

[@jwssngr]

Thank you clay for explaining that. It happened to me twice with two separate penny stocks and every time I lost shares and they increase the value of the shares that was left however not long after that happened they diluted the market again with massive amounts of shares and the value of the stock Drop Like a Rock and you're stuck. Needless to say I've learned a hard lesson

[@claytrader]

Thanks for sharing your experience. You are not alone in this. A hard lesson to learn, but glad to hear you have learned it.

[@dragland7268]

Very timely message Clay. Thank you.

[@claytrader]

+dragland7268 You're welcome

[@forgiversb5901]

Your videos are truly the best .

[@claytrader]

Thanks for the kind words.

[@activationmarketingagency2475]

Thanks Clay. What are your thoughts with whats going on now with the ACB stock with their May 11 reverse split?

[@claytrader]

if you're interested in "talking stocks/trading in general", that's the entire idea behind my private trading community (which you are welcomed to join) which you can find here claytrader.com/team/

[@RobTackettCovers]

There was this biotech stock that halted today, so I was like "what is up with this stock to where it has gone from 11 bucks a share to over 30 a share in a couple minutes?" so I looked up the stock, found their website, and the website had a Reverse Split announcement in it, so I found this video, and heard your explanation, and even though I traded in it, your video explanation caused me to trade the stock based on the info in this video, and not by "wow, this stock looks like it just might go to who knows how far up"...so thanks so much for making this video...here, let me find that ticker, because I don't remember it...HSDT ...it's Helius Medical Technologies...thanks Clay, and hope you and yours are doing well!

[@claytrader]

Glad it could help!

[@Kris-WT]

So typically, would you wanna hold onto it throughout the reverse split? I'm in on VYNE and they're about to reverse split. Just trying to do some research and see where vyne will go from here. Hm

[@claytrader]

That depends on your research and strategy/goals.

[@XxiihrsiixXx]

What happend with your vyne shares and what did you do?

[@davidhulsman5359]

Im also interested in the outcome

[@coilymo]

Great info. I just had one my investment do a split reversal and it threw me off. I think I’m going to trade first thing this morning and move my money.

[@claytrader]

Glad it could help

[@nickwilliams3710]

Office Depot brought me here...

[@claytrader]

Ouch....

[@anthuanjm]

Did you Get in Before the Reverse Split or After the Reverse Split

[@mirsumon896]

Great job bro !

[@claytrader]

Thanks!

[@fredcisneros2013]

What if you have 23 shares? WhTs going to happen to the 3 remaining shares?

[@claytrader]

They'll be reduced to partials

[@atmosrepair]

Sometimes no fractional shares, they're reduced to nearest whole in my share case. So just lost in space never to be found

[@AyZeeMusicc]

I had approximately 2000 shares of a stock that did a 1 for 50 reverse split leaving me with only 45 shares- I see that my cost price went up, but wouldn't it actually hurt me in the end, if I bought more of this stock to help bring down my cost? Realistically I don't see this stock EVER reaching what my new cost price is. Thanks for the help!

[@claytrader]

Happy to help.

[@Deep4kinThoughts]

ACB brought me here 🌿☘🍀🌲🍃

[@claytrader]

bummer!

[@Deep4kinThoughts]

@@claytrader the bummer is I just started on Robinhood trading and ACB was my first investment 🙃 I guess its part of experience on learning. Thanks for the video explaining it.

[@claytrader]

@@Deep4kinThoughts cheers, all you can do is learn from it

[@theodoretoke]

thank you! ORC is just going to pass through one! 5:1 just as your example! Thank you so much for the teaching! appreciate!

[@claytrader]

And thank you for watching!

[@__________Troll__________]

6:59 *I was going to say that*

[@claytrader]

Good thing I said it for ya then ;-)

[@markquiles3263]

Thanks Clay, Im diving into the world of stocks, and I value these types of videos. New Subscriber alert !

[@claytrader]

Welcome to the channel Mark!

[@sasuke0poons0all]

Where my UGAZ people at

[@claytrader]

Probably undergoing another reverse split.

[@bellanova117]

lol

[@rebelusray]

Nice video. I'm a low level employee of a major company; they may have to consider a reverse stock split. I didn't know what that was. I was just curious; thanks for helping me understand the basics.

[@claytrader]

You're welcome.

[@Dr.HouseMD]

MoviePass brought me here. 😕

[@claytrader]

Ouch....

[@Dr.HouseMD]

ClayTrader I know right? I had purchased 100 shares of HMNY @ $.83 per share. They did a 1: 250 reverse stock split. I now have one share and it’s worthless. in doing that process, where did the money actually go?

[@claytrader]

Into the company's pocket.

[@MrAtomicant]

Yea me too.i think they are going to have another one soon

[@ChuckSeayII]

Same thing with RNVA!

[@adamderose9468]

is a '1 for 30' a reverse split? and would that be written 1:30? also, wouldn't the example be 1:5 instead of is in the video (5:1)?

[@claytrader]

Could be.

[@AppVenturesxD]

DRYS lolololol

[@claytrader]

The KING of reverse splits!!!!

[@LiamApilado]

Im new to investing but have been invested in SLBG for 1 year or so now. They changed to CNXA and then had a reverse split 10-1. My market value has decreased so much and I have no idea where it went? This video was great because I understand better what a reverse split is but am not sure why my market value has changed so much. Is this due to its poor performance or am I missing something here? At the end of the day, I'm invested in this company because I believe in it and would like to learn more about investing. I would very much value a reply from you!

[@claytrader]

Most times, "poor performance" is the reason.

[@mirsumon896]

Well explained indeed!!!

[@claytrader]

Good!

[@conrad9698]

Thank you for explaining that! Awesome video!!

[@claytrader]

You're welcome. Glad it could help.

[@jonfire6585]

came from UCO... Thanks for the explanation

[@claytrader]

Thanks for watching.

[@djsingh800]

very well explained nice

[@claytrader]

Cheers

[@1rrobb]

NAS.OL brought me here as well. Perfectly explained, thank you! Are reverse splits more occurring these days since covid? BTW I still believing in this stock, Scandinavia will recover quickly after covid so I'm no going to sell at this moment.

[@claytrader]

I think they're pretty normal.

[@Raul-wt5jx]

Good Video. Went thru 5 videos and I only understood yours. You made it simple and clear. Thanks. Moviepass stock lol doing a reverse split tomorow.

[@claytrader]

Yeah, HMNY is now crushing many after the reverse split.

[@ayushg2271]

UCO, an etf just did a 1:25 reverse split. am I doomed? this is mainly due to crude crash.. worth staying in .. or should I get out ASAP?

[@claytrader]

Reverse splits are not good, most of the time.

[@sarojupadhyaya4353]

Very informative . Video

[@claytrader]

Glad it was helpful!

[@gamergodv9118]

i subscribed with eleven accounts for your awesome trading lessons

[@claytrader]

Glad you're enjoying!

[@yinonsiboni]

Hey, a question plz. In case you own a number of shares that isn't divisible by the ratio of the RS, what happens? (for example the ratio is 3:1 while you own 1/2/4/5/etc. shares)

[@claytrader]

You'll get "fractions" of shares. So, in theory, you could end up with 1/2 of a share.

[@AvtarDhillon]

Good one well explain

[@claytrader]

Thank you 🙂

[@user-us5lq6sd5r]

Thanks for sharing, can't do the sell call option anymore.

[@claytrader]

What do you mean?

[@user-us5lq6sd5r]

@@claytrader I can not do a sell-call option .

[@claytrader]

roger that

[@thebenzsquad4668]

Hello clay, this also explains that average down before the reverse split technically wouldnt be of any benefit. Since your average also goes up.

[@claytrader]

Correct

[@Hlazun]

Got on UCO revers split 1:25 but had stop loss which worked on the day of split. Money was on my account but next day my broker put me in short for 768 papers and said that as it was split and system got a signal to sell it is sold my 32 papers and rest in short for 768 papers. I think they cheat me. Because in system I can see only my sell and profit for 800 papers and then just a short position for 768, no any sign of sell for 32 papers. And I think stop loss could not cause opening position in short. Probably it’s illegal. What do you think? Is anyway to proof that I am right?

[@claytrader]

if you're interested in "talking stocks/trading in general", that's the entire idea behind my private trading community (which you are welcomed to join) which you can find here claytrader.com/team/

[@marianoblazquez]

Very useful! Ended up here to find out what ENT is doing! Cheers!

[@claytrader]

Cheers

[@dannyrabaan]

Hi can you help me on this. I have full math included and what the chart says. TWOU Average stock price buy in - $0.2476 1:30 split for my 340 shares = 11.33333 0.2476 x 30 = $7.42 price avg cost June 14th on chart shows max price $7.23. Does this mean I have to gain 19 cents on the stock to break even?

[@dannyrabaan]

Looking further back I can see a strong possibility of profit but over 1-2 months depending on luck. I prefer 1-2 days 😅

[@claytrader]

You need a whole lot of luck when it comes to making money on reverse splits.

[@danmanr]

I'm curious, looking at CIDM right now, they did a 1:10 reverse split on May 9th 2016. On the chart the stock went form $2 on the 9th and closed at $1.60 on the 10th. Being real new to this I'm trying to understand why the stock didn't go to $2 x 10 on the 10th? There is no way it jumped and fell $18.40 in one day. Thanks

[@claytrader]

if you're interested in "talking stocks/trading in general", you are more than welcomed to join my private community - claytrader.com/team/

[@IRONDICKMECHANICALHVACdavis]

Claytrader. Answer this one for us. If we buy 100 shares in johnson&johnson. And the shares went up. Do we get the dividend share automatically or do we have to buy the dividend share separately to receive the dividend gain.?.

[@claytrader]

No, you still get the dividend no matter what the stock price does.

[@jamiedude25]

Is it common for penny stocks to do a reverse split before potential merger? And in this case is it bullish in your opinion? "Seneca stockholders are urged to vote in support of the merger by voting FOR each proposal presented at Seneca’s Special Meeting on April 9, 2021, including approval of a reverse stock split which is a key condition to closing"

[@claytrader]

Penny stocks reverse split all the time. Which is why they are garbage.

[@thundust]

Hi Clay, thanks a lot for this informative video. So, once a company announces a stock split it would be normal to see a drop in the price as investors may panic, causing a spike in number of bears; correct?

[@claytrader]

Yes, exactly

[@ssnacy]

Very neat and nice explanation! Thanks

[@claytrader]

You're welcome.

[@DistractedDaisy]

I loved my Glad stock, I’ve been making money and was about to add more and today they’re doing a reverse split and my stock price was double, I was blinking and thinking…. Now I am scared to think about Monday and what happens to my Money then?

[@claytrader]

Your money will more than likely be going down.

[@magnum7024]

With the understanding of a stock that is undergoing a r/s is indeed bearish. However, one could question that with future strength in the stock is an offering something that could be in the cards? Or does policy even allow such?

[@claytrader]

+Magnum All these companies that do Reverse Splits are doing so based on "future strength" (that's an easy thing to tell shareholders). Is it possible? I guess. Does it happen often? Not at all.

[@adi-meraunited4814]

Thank you so much for explaining this because of I was so mad when my share number is go down I said I it's not my real share number where is the rest of my share, but I feel good now thanks again.

[@claytrader]

Glad I could help

[@hoxygenguy]

Great Job Clay and thanks you !

[@claytrader]

Cheers!

[@bitcoinlife9227]

Not a trader, traditional market in my opinion is for traders. Not long term i just learned my lessin thank yiu very impormative video. You gain a subs from me✌ and be watching old videos of yours bossman💪💪👍✌✌

[@claytrader]

welcome aboard!

[@ciaranfinucane6946]

say you are in the red, is your average stock price ie when you break even also multiplied by (5)?

[@claytrader]

I'm not sure what you're asking.

[@tylermann650]

@ClayTrader great video, very to the point. Super weird times right now, oil and gas obviously all low. Any thoughts on US Oil company for instance doing a reverse split recently? Thanks!

[@claytrader]

Not good

[@calebchamberlain4077]

So BBBY just announced they want to do this. Are they considered a penny stock or big board? Price is sinking of course. Is there any hope or anything unique about a “big” company do a reverse split?

[@claytrader]

I mean ya never know, but generally speaking, the odds are highly against the shareholders.

[@MrMurthy8046]

Thanks for explanation 👏 Ameri Holdings brought me here 😊

[@claytrader]

Thanks for watching

[@marekbalogh1823]

Hey. Great vid man. I got that I think. However I met this term now while a I am starting to learb about shorting and i get the rough meaning (it is just opposite to classic "long" way) So is a reverse split very bad for a short position? Thank you.

[@claytrader]

No. It's neutral because everything changes in proportion.

[@cuisonginno]

What are your thoughts on Camber Energy inc.? In the past they did a reverse split..

[@claytrader]

if you're interested in "talking stocks/trading in general", you are more than welcomed to join my private community - claytrader.com/team/

[@12enzo99]

Hi @ClayTrader, nice video. Wondering if you can do a visual video on how Warrants effect a stock?

[@claytrader]

Good idea. I'll see what I can do.

[@12enzo99]

@@claytrader thanks! Looking forward to it. Just subscribed too. Didn't realize I was still unsubscribed, even though your videos keep showing up.

[@claytrader]

Cheers

[@writethevision2015]

This was good! Thank you!

[@claytrader]

Cheers!

[@christians4618]

Great video Clay. Question: Aurora Cannabis (ACB) TSX: is going to be consolidating their shares 12:1 this may in order to meet & enlist in the NYSE. Considering what you've mentioned, do you consider that a good move? their mission is more exposure to investors in a bigger trading platform. Let me know your thoughts Thanks again!

[@claytrader]

if you're interested in "talking stocks/trading in general", that's the entire idea behind my private trading community (which you are welcomed to join) which you can find here claytrader.com/team/

[@josequezada-sanchez8194]

Great video thank you for helping me better understand what an R/S is. I'm a little worried now however because I just got in on RNVA and they're voting on potentially doing in RS this week they are currently at .023 a share. I got in at .01138 a share.

[@claytrader]

Welcome to the world of penny stocks. I'm guessing everyone is proclaiming how "positive" a R/S will be. It's NOT.

[@kingkd5605]

Hi Clay, very informative video! Do you think a company does reverse split it will lead to short squeeze? Cause that is not a good move and then traders will short the stock and eventually need to buy in order to complete the movement

[@claytrader]

Nope. Most times it does not.

[@PWRslide_TV]

HMNY just did one. I freaked out. I watched this video. I'm okay now but still at a loss. Thanks man.

[@claytrader]

Glad it could help.

[@rightfitfitnessperformance8209]

Awesome Video. Thanks Clay!

[@claytrader]

Thanks for watching

[@justanotherartist5646]

Thank you for this. So will this affect buyers if one was to sell them after the reverse split?

[@claytrader]

It affects everyone.

[@abdelaali1983]

Great video. Cleared my confusing. Thanks

[@claytrader]

Glad it could help.

[@bayardoubeda]

In a short position this is a good strategy, but in the case of ANY the situation it was different, because the two next days was an oportunity to get long and take good profits.

[@claytrader]

I'm not sure what you are referring to. A "reverse split" is not a strategy. It's just a dynamic of the market that companies can use.

[@bayardoubeda]

Well, I agree, I'm refering to make a strategy when the reverse split take place, if I think the stock going down in price, well I enter in a short position.

[@bayardoubeda]

BTW thank you for the answer.

[@claytrader]

I also enter a short position if I think a price is going down.

[@dustindunnam4441]

if I now have fewer shares from a reverse split won't that mean I lose my multiplying power on any gains of that share price? Such that a $1 increase in a share price will now be multiplied across fewer shares that I own and produce less return on the investment?

[@claytrader]

Right... they're vicious

[@williamd7161]

So the dividends that you're receiving will be reduced as well since you are now holding a smaller number of shares.

[@claytrader]

I doubt a dividend paying company is doing a reverse split.

[@rhyselliott9170]

If you were holding at a loss leading into a r/s, would you sell prior or hold and hope with solid news due in the year to come. Obviously with a huge loss of profit potential due to less shares. simple arithmetic

[@rhyselliott9170]

taking into account, interest from institutional investors at more attractive price

[@claytrader]

Problem with R/S's is, if the price goes down after the price adjustment has taken place, you are literally losing shares at that point in time. They truly do put people in a nasty situation.

[@rhyselliott9170]

literally 9.5/10 its a lose-lose situation for the s-holder. lesson learned when going long on a penny stock with signs of potential success. Will try to mitigate in future and/or change strategy. For now will take the loss and back another with a little more dd. Thanks mate

[@claytrader]

If you like my free content, and plan on continuing to trade in the world of penny stocks, then I'd highly recommend this - claytrader.com/courses/penny-stock-survival-guide/

[@72alihassan]

excellent, well explained.

[@claytrader]

Glad it was helpful!

[@whoneedstoknow1105]

Quite detailed and explained well.

[@claytrader]

Thanks!

[@Lunabell-x6j]

I understand a reverse split now, somewhat at least. I really wish I had known before but JNUG just split and I went from 10 shares to 1. Now I know I didn’t lose money in fact I’m still gaining about 50% more then I put in. However I feel like I don’t have any holding in it anymore since I only have 1 share. Should I sell after a reverse split? Should I risk it and buy more? Is it possible to sell before a reverse split at the higher price and get that per share before it becomes the price of one? Apparently they had announced they were doing this but I wasn’t paying attention. I’m not sure where to get information like how to manage stocks in this case.

[@claytrader]

if you're interested in "talking stocks/trading in general", that's the entire idea behind my private trading community (which you are welcomed to join) which you can find here claytrader.com/team/

[@TheHassboss12]

If a company is undergoing a reverse split or planning on doing do. From a share holder perspective would I be wanting to hold or try to sell my shares to avoid any more decline in shares

[@claytrader]

That's up to your belief in the company.

[@livingjoy3607]

Well you didn’t touch on is the impact that it will have for those stocks where the holders receive a dividend. Having a less number of stock will result in less dividend payout.

[@claytrader]

Everything adjusts in proportion, including the dividend.

[@tdpieper74]

@ClayTrader about to experience my 1st R/S, a 10:1 with Castor Maritime Inc. [CTRM]. What determines the new share price? The share price when the R/S goes into effect or is the share price determined after the R/S using company valuation and outstanding public shares?

[@claytrader]

I cover that in the video.

[@atmosrepair]

My shares doing a reverse split in about a week, I see this is referred to as stock merger. I just read an article that this was going to be happening soon. So at least they gave a headsup that it was coming, rather than an after hours surprise. The company is PolyMet Mining, NYSE ticker abbreviation PLM. They're priced at .42 cents right currently and have actually been increasing in price from. 22,.28,.31 cents, peaked at a high of .60 cents on one of their runs. But I wanted to ask what you think the purpose of this 10 to 1 stock merger would be? Simply to increase price per share? Perhaps with a higher share price hoping to attract more attention and investment? What else do you think? I dont know if pressure was put on them by NYSE, being that they have been under a dollar for existence. And It isn't due to losses, when actually have been increasing in share price, and forecasted to gain quite bit of value. I bought in at an average of price of .27 cents per share, purchasing around 2,500 shares. This split will take them from over 1 million shares down to roughly 100,000 shares . I invested because they have been granted new rights to a mining project in Northern Minnesota, that the company owns 100% of the rights to. They will be mining copper, nickel, palladium, and other precious metals including gold,silver,platinum,palladium. It is predicted to be largest copper mine in north america when fully operational. They are about 3 years away from pulling metal out of the ground, now doing rehabilitation on old mining infrastructure that will be used again. So I saw this as a long term or hold investment, and got in rather early while stocks still under a dollar per share. Northern Minnesota has the largest deposits of platinum anywhere in the world, and northern MN has been renown for iron ore mining for a century, but the hold up has been environmental concerns because the area is rather uninhabited but dense forest and nature and a very Democrat voting area, so they have blocked a lot of mining proposals in past and even shut down old operations.

[@claytrader]

Thanks for sharing.

[@Lokiwho]

GE is voting on this in a couple of months but it doesn't follow the normal reasons. Any advice?

[@claytrader]

if you're interested in "talking stocks/trading in general", you are more than welcomed to join my private community - claytrader.com/team/

[@anthuanjm]

My Question is How do I Make The Profit....Do I Enter Before the Reverse Split Or After

[@claytrader]

You make profit when you sell your shares (assuming you sell for more than you bought for).

[@anthuanjm]

@@claytrader Right But That's After I I'll Already Took A Position Before the Split on the Long Dip

[@claytrader]

@@anthuanjm same principle applies

[@camerons1487]

Great breakdown. Now if I only have 1 share. Will that mean that I should expect a boost in my share price?

[@claytrader]

Then kiss your share bye.

[@camerons1487]

ClayTrader I sold it on time. Cheers.

[@ts15210]

So you think the main purpose of it is to give the impression that a company is doing better than it is? Possibly hoping for new buyers to not do their own due diligence? I know one advantage of a R/S is that fund managers with low limits on what they can buy, would be able to purchase them as well once the price goes up...your thoughts? What are other reasons a company would want a R/S? Based on your experience, are the usually not a good thing?

[@claytrader]

The only reason companies do them is to raise their share price. If you need to manipulate your own shares in order to make them have a higher value, 9/10 times I'd say that is a BAD sign.

[@darrenwilson3732]

A reverse split is Bad for the shareholder. Especially if the position size is large, and if one is also Red on the stock. After the split, the share holder has less leverage and the break even point when you are Red is much higher. Also, the fundamentals haven't changed, now the stock is instantly high and no corresponding numbers to support the high price, and it gradually sells off!

[@claytrader]

Correct

[@JhoeyDulaca]

When the company does the reverse split, does it means that the price they are showing in the market is already the consolidated price? I'm confused.

[@claytrader]

After the reverse split happens, the market will reflect the new price.