I wonder about the investor psychology factors. One expects volatility with a penny stock, but not so much with something in the $5+ range.

Right now, at 7 cents, the grouped shares are worth $3.50.

Now if you'll forgive me for talking pie-in-the-sky here for just a moment, there has been occasional discussion in the past year-and-a-half or more about the released&retracted valuations. And there has been talk of the stock ultimately being worth 40 cents. For the grouped shares, that would put the value at $20.

I believe that people would be more likely to believe a 7 cent penny stock jumping overnight to 40 cents on news than they would believe that a $3.50 stock is suddenly worth $20.

That's a very small factor, but I wonder if anyone else agrees that emotion could work against us in some ways? To clarify, I'm not against the 50:1 grouping. I'm just trying to wrap my head around all the pros and cons.