shotsky
2 years ago
Actually, I misspoke when I said as soon as it splits people will sell. That's not quite right. At the split, you won't be able to trade it for 3 days, because they take back all shares, issue the new ones with a different series number and with a 'D' on the end of the ticker. It will be USOID. But that only applies to those of us in brokerages.
Anyone that is an outright owner can sell immediately. That's when the sp drops. By the time we can trade, it is already going to have dropped.
You don't have to believe me, just watch what happens for the 3 days after the split. That's why I sold 200K shares today.
shotsky
2 years ago
Then you don't understand reverse splits. As soon as it splits, people will sell at that new, high price and the sp will tank. I've been dealing with them since 2008, and I've never seen one where the shareholders made out.
A reverse split happens when the company mismanages itself and lets the OS get out of proper proportion. There are two ways to fix that - buy back shares or reverse split.
My course of action is to sell all, wait until the smoke clears, skip one dividend and see if it's worth buying back in. I doubt that it will be worth it.