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Don't hold too long or you'll be a victim of the treacherous reverse split!!! BEWARE ... they can be heartbreaking
Posts: 575 | From: Orlando, FL, US | Registered: Jan 2004
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Never had a penny do that well. have had several $2-4 stocks go to $20+. I am just trying to figure the startegy required for pennys.
Posts: 1424 | From: Peoria, IL. USA | Registered: Oct 2003
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GMONEY, I don't understand what do you mean that reverse split will hurt you.- can you please explain in what way? ED
Posts: 61 | From: ORLANDO-FLA-USA | Registered: Nov 2003
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A reverse split is when a company decides to do an adjustment of its shares. They can be 1 for 2 or 1 for 5 or 1 for 10 or 1 for a 100 or whatever they decide. In other words, say you have 100 shares of XYZ and they do a 1 for 100 reverse split. Now, instead of 100 shares, you have 1 share. But the PPS should be 100 times what 1 share used to be, so initially you haven't lost any money. The PPS from then on will depend on how strong the company is.
A reverse split is not always bad. Only if a company is going under is it a bad thing. If, on the other hand, a company is doing well, then a reverse split can be a very good thing. It can move a company from the OTCBB to the Nasdaq, bring more attention to people with bigger, deeper pockets, and cause the stock PPS to go up. The way that happens is that for a company to list on the Nasdaq, they have to maintain a price of at least $1.00 a share for a certain time, and don't qoute me but I think it is 6 months. Once they are on the Nasdaq, their exposure to the investing public is made much more noticable. More people buy, the PPS goes up, and everyone is happy. If the company is not doing well, then a reverse split can be a very bad thing indeed. You can lose your shirt.
Walt
Posts: 178 | From: Albany, OR USA | Registered: Oct 2003
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I have had several babies along the way. Only been trading since September 2002.
Took 2K turned it into 22K at this point.
Bought Adzone Research (ADZR) with an average price of .025 recently hit a high of .85. Going to track this up to a dollar. Bought SRAM at .17 and recently sold for 1.25 Bought AMD at 3.50 recently sold for 15.25
My approach is more long term. If 6-18 months can be called long term.
My focus is to try to find companies with a real future and ride it through. Many appear to be riding the PR on a company to sell once they have their gains. Then hop back on the same train when the stock falls. They appear to be making money. I don't have that much time daily to track the investments and ride the MACD waves.
So far I have been in the up market so I do not know how my style will do in the future. My goal has been to double every six months. Currently I have met every mark ahead of time. 2k to 4K to 8K to 16K (3 months early) now shooting for 32K by September 04 (original timeline). Currently only 10K away with a lot of potential in my portfolio.
Have (20) stocks in my portfolio... 5 other stocks recently hit my target prices for sell. (AMD, AKLM, CYRO, SRAM, NSDM) All at a very good profit.
Stocks that will help me reach my goals currently in my portfolio... ADZR MDIR LBTT GMED
Posts: 172 | From: Virginia | Registered: Nov 2003
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if a stock was moving upwards for all the right reasons, a company would be foolish to have a R/S, unless they felt the stock could not make it to 1 dollar and thus be eligible for a NASDAQ listing without it. (so even in this case a R/S doesn't sound like it would be a bad idea.)
so, i don't think u have to worry about a reverse split with a long-term negative impact unless the stock price is languishing.
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