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Message: Acacia Research settlement with ATT and Reverse splits

udflryerfan - Your response makes sense.

I don't understand why, but it seems that some posters are very emotional and confused about this topic. That's too bad for those trying to make sense of the issue.

Some seem to think that a reverse split by itself impacts future SP gains. This is not so. If you invest $10,000 in a $1 stock with a P/E of 3 and the P/E goes to 30 (as a result of SP gain) the $ gain for the stock holder would be the same as if the $10,000 had been invested in a stock at $30 with the same P/E move from 3 to 30. They'd both get back $100,000 for a $10,000 investment.

Once again, emotions aside, a reverse split by a company doing well for the purpose of getting listed on a big board can be very successful.

A reverse split done because the company is in trouble will likely fail.

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