This is why I stay here and plan on continuing. Regardless of when you advocate a RS, it has the same impact of which I'm writing. There is no advantage for the retail shareholder, none whatsoever ever.
It helps companies trying to get on a board like Nasdaq, that don't deserve this honor on their own. It also keeps companies that are threatened with expulsion from the board that don't deserve to be on the board anyways. In either case, it only helps the companies achieve something they don't deserve to sucker people into buying the stock which doesn't work as the author of that article points out. It is shear madness to consider doing this at any rate. That post and this are based on facts. I hold a stock, CTIC that I have been waiting to dump but its S/P value now is back to where it was before the reverse split and I have lost greater than half the value. They did this to stay on the NAZ but they don't desrve to be on the NAZ. The shareholder would have been much better off, if they went off the NAZ and didn't screw around with trying to falsely impress anyone. People that consider this a smart move at anytime are wrong. However, a 2 for 1 stock split would be OK after all the stock is purchased when people see the true value of the company. The opposite psychology holds forth and the stock rises back to where it was and you have doubled your money.
You can find a stock here or there that was successful but they did this inspite of the RS not because of it. If you do not care to lose your money, then go ahead and recommend a reverse split. By the way, I'm done for the day and this is my last post, at this time on this subject.
Regards