But most, not all, but most penny stocks use R/S because they have diluted to where the stock can't sell anymore and they do a R/S to increase pps short term so they can dilute more shares, case in point AFRN. Most pennies need some dilution to get money needed to run the business but the good ones use it only when necessary. That seems rare lately.

Ric

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Originally posted by Sgt. of ARMS:
I have a question about companies that do a reverse split. Do all companies that do a reverse split end up going down as soon as the split happens? Have there been companies that the price goes up as soon as the split happens? It would be strange for a company to announce a reverse split, then a few days later submit a report that shows that they are in the profits and the sales of the stock start being bought, and in large sums by the ceo and other officers of the co. Does this action mean after the split the stock will rise and that is why the ceo and officers were buying the stock. Get the picture the ceo and officers buy it real low then do a split then post earnings and the stock takes off making all of them rich. Is this possible or not?

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