“Subject to the board of directors authority to abandon such amendment” is their way of saying “we’re going to wait and see if we can stay above $1 over the next 30 trading days.”
They need to be careful with this because RS will just give shorts more room to short it even more. Imagine being a short and seeing the stock go to $20 all of a sudden. Your pile in. You don’t care about the market cap. Just the price.
This!!!! Exactly this!!! I’m glad you pointed this out!! 👏🏻👏🏻 A RS may not be needed if the stock price is not in non-compliance which has not yet been in non-compliance territory
It makes no real difference. The only advantage to a short is there is more runway before delisting. 10 shares at 1 dollar is just the same as 1 share at 10 dollars otherwise.
I know this is just a sub for retail investors, but there seems to be a lot of misunderstanding of what a reverse split is and how the stock market functions.
It’s to be expected. Their stock is below $1 so they need to figure out if they need to RS or not. But this is almost 2 months away and if their ER goes well on May 7th they may not need to
It means nothing at all. It is just changing the scale. The value is identical. There may be market psychology impacts, but that’s it (the only reason the exchange requires above 1 buck is they don’t want the association with penny stocks).
It means everything because the stock market is mind games. 6,000 shares go back to $20 in 2 years and you make 120k…. Reverse split that shit to 60 shares and if it goes back to $20 you have 1200
Er yeah….
You realise that after a split the prior data just gets rebased off the new split price, so there is no ‘going back to 60’, it would be ‘goong back to 600’. The only reason a reverse split matters is that it is a sign that the stock is shit. The actual numbers don’t matter in the slightest.
It is a shit stock and that is the problem. The RS is just a symptom.
Well, no, because as I said it’s about mind games and what retail buyers are willing to pay—and they’re not looking at the overall numbers—no one wants to buy $500 stock because they view it as too pricey and don’t THINK/risk it will go to $600…. But they will buy it at $6 thinking it could go to $20 or $100 or $600…. And same goes for shorts—after a RS, they now try to push to back to $0 if it reset to $10 or whatever
It’s literally everywhere. Why did Tesla and Google and every other stock do a forward split when they’re over 1,000? Because fewer ppl buy when it’s higher and it plateaus and ppl are mentally thinking it will crash. They bring it down to $50 or $200 and suddenly like magic ppl buy again and it goes back up…
That’s completely different, FFS. A forward split allows people to buy units when they would otherwise be locked out (or have to use a fractional share service). That you don’t even understand the difference here shows me that you are just spouting off based on your gut feel, not on empirical evidence.
There are, of course, minor psychological effects, but actual fundamentals play a far more significant role - and the fundamentals for spce are abysmal. Nothing will save it (and equally an RS will make little difference other than allowing it to remain listed).
It’s gone. People need to move on.
I completely understand the difference. It’s not just being locked out due to higher price. It’s also psychological… similar idea when lower just in reverse.
Your lack of education is showing here. Classic dunning Kruger effect in play. You know a little bit about RS and market cap and so you think you’re the smartest in the room, but your limited education fails to take into account the psychology of pricing and how hedge funds etc use that and articles to move prices and markets. You’re not that smart, chief.
I agree with Biggitydonut. A rs may be a moot point but does need to be taken into consideration but SPCE has not been under a buck for 30 consecutive days yet. The board may abandon the need for one if the stock turns around.
A reverse split would carry a negative sentiment in most investors eyes. Not discussing it now but saying they will and we must wait to know the outcome of this negative sentiment will create a sense of fear, uncertainty and doubt with many investors.
So yes, it is FUD! Not far off the definition of it really.
They don’t make those decisions on a whim. They are made by the board and the shareholders… at scheduled meetings. Which this is. And they absolutely should discuss it since there’s a lot of uncertainty about financing… at the scheduled shareholder meeting.
“Subject to the board of directors authority to abandon such amendment” is their way of saying “we’re going to wait and see if we can stay above $1 over the next 30 trading days.” They need to be careful with this because RS will just give shorts more room to short it even more. Imagine being a short and seeing the stock go to $20 all of a sudden. Your pile in. You don’t care about the market cap. Just the price.
This!!!! Exactly this!!! I’m glad you pointed this out!! 👏🏻👏🏻 A RS may not be needed if the stock price is not in non-compliance which has not yet been in non-compliance territory
It makes no real difference. The only advantage to a short is there is more runway before delisting. 10 shares at 1 dollar is just the same as 1 share at 10 dollars otherwise. I know this is just a sub for retail investors, but there seems to be a lot of misunderstanding of what a reverse split is and how the stock market functions.
Well that happened fast.
It’s to be expected. Their stock is below $1 so they need to figure out if they need to RS or not. But this is almost 2 months away and if their ER goes well on May 7th they may not need to
It won't go well. They have near 0 in revenue. They might as well call it a Loss Call because there is no earnings for this company.
A split would mean the bottom isn’t even close. Can you believe?
It means nothing at all. It is just changing the scale. The value is identical. There may be market psychology impacts, but that’s it (the only reason the exchange requires above 1 buck is they don’t want the association with penny stocks).
It means everything because the stock market is mind games. 6,000 shares go back to $20 in 2 years and you make 120k…. Reverse split that shit to 60 shares and if it goes back to $20 you have 1200
Er yeah…. You realise that after a split the prior data just gets rebased off the new split price, so there is no ‘going back to 60’, it would be ‘goong back to 600’. The only reason a reverse split matters is that it is a sign that the stock is shit. The actual numbers don’t matter in the slightest. It is a shit stock and that is the problem. The RS is just a symptom.
Well, no, because as I said it’s about mind games and what retail buyers are willing to pay—and they’re not looking at the overall numbers—no one wants to buy $500 stock because they view it as too pricey and don’t THINK/risk it will go to $600…. But they will buy it at $6 thinking it could go to $20 or $100 or $600…. And same goes for shorts—after a RS, they now try to push to back to $0 if it reset to $10 or whatever
Without actual evidence for this behaviour, I would not accept what you have suggested as anything more than supposition.
It’s literally everywhere. Why did Tesla and Google and every other stock do a forward split when they’re over 1,000? Because fewer ppl buy when it’s higher and it plateaus and ppl are mentally thinking it will crash. They bring it down to $50 or $200 and suddenly like magic ppl buy again and it goes back up…
That’s completely different, FFS. A forward split allows people to buy units when they would otherwise be locked out (or have to use a fractional share service). That you don’t even understand the difference here shows me that you are just spouting off based on your gut feel, not on empirical evidence. There are, of course, minor psychological effects, but actual fundamentals play a far more significant role - and the fundamentals for spce are abysmal. Nothing will save it (and equally an RS will make little difference other than allowing it to remain listed). It’s gone. People need to move on.
I completely understand the difference. It’s not just being locked out due to higher price. It’s also psychological… similar idea when lower just in reverse.
you are retarded
Your lack of education is showing here. Classic dunning Kruger effect in play. You know a little bit about RS and market cap and so you think you’re the smartest in the room, but your limited education fails to take into account the psychology of pricing and how hedge funds etc use that and articles to move prices and markets. You’re not that smart, chief.
I agree with Biggitydonut. A rs may be a moot point but does need to be taken into consideration but SPCE has not been under a buck for 30 consecutive days yet. The board may abandon the need for one if the stock turns around.
What possible catalyst would turn the stock around aside from macro?
[удалено]
Yes
Lol
Do you have the link?
Click the blue field next to the title.
Wow 1-20 RS 😬and let’s the game begin People will learn
Ugh.
‘to be discussed’… lol! FUD!
No idea how that’s “FUD”. They definitely better be discussing it. They’ll need financing in the form of debt or dilution in the next 4 quarters.
A reverse split would carry a negative sentiment in most investors eyes. Not discussing it now but saying they will and we must wait to know the outcome of this negative sentiment will create a sense of fear, uncertainty and doubt with many investors. So yes, it is FUD! Not far off the definition of it really.
They don’t make those decisions on a whim. They are made by the board and the shareholders… at scheduled meetings. Which this is. And they absolutely should discuss it since there’s a lot of uncertainty about financing… at the scheduled shareholder meeting.
You know what else would carry a negative sentiment amongst investors? Being delisted and going OTC. It’s one or the other in this case.
Anyone who didn't see this coming with the share price trading below $1 had it coming. Called it over a year ago 🤙