@@XxiihrsiixXxyeah im so confused, i have a 1 for 100 reverse stock split. I had 849 shares and went down to like around 17 shares. If I sold my stock at the price of around say 100$. Do I still profit the same or is it bc my shares went down I profit less?
I was looking at a stock and researching before purchase and saw they were doing 6-1 reverse split in a weeks time. I had no idea what it was so hopped on YT. I watched 3 other videos before yours and this video was far superior and explained it so much better. Thanks Clay 😊
I learned of reverse split with Aurora Cannabis. Won't soon forget it. The logic I understood but thanks for the summary at the end of the video confirming that they are generally not a good sign
Thanks for the info, I’m new to stocks, but question I also have USO and they did a reverse split , I bought 13 shares for October 13th $9 call does my money have a chance to recover or is it lost? It’s been at 1 cent for weeks
Thanks for the video. I was thinking a RS would be something like this, and after hearing you explain it, I was right, but with much more clarity from you. Appreciate it.
@@claytrader stock aln 2,000 shares at 0.1470. They reported a name change and reverse split. I bought in before the split announcement. I will be getting out as soon as i can and staying away from this stock. Thank you for the reply and info video.
Thank you. I have CTRM and I went from 166 to 16 reverse split . A 1 of 10 split amount. That took place on May 28 this year. You explain was easy to understand. Thank you.
Thanks Clay, I have a Penny Stock that went from 12,500 Shares down to 12 Shares, after Splitting Twice, Guess I'll just hold on to it. Thanks for the explanation.
I had approximately 2000 shares of a stock that did a 1 for 50 reverse split leaving me with only 45 shares- I see that my cost price went up, but wouldn't it actually hurt me in the end, if I bought more of this stock to help bring down my cost? Realistically I don't see this stock EVER reaching what my new cost price is. Thanks for the help!
Thank you clay for explaining that. It happened to me twice with two separate penny stocks and every time I lost shares and they increase the value of the shares that was left however not long after that happened they diluted the market again with massive amounts of shares and the value of the stock Drop Like a Rock and you're stuck. Needless to say I've learned a hard lesson
Hi Clay, your 101 videos are really insightful, thank you! My question is this: Why would a company do a reverse split? How do they benefit from having less shares? Why is this an indication that the company isn't doing so well?
So typically, would you wanna hold onto it throughout the reverse split? I'm in on VYNE and they're about to reverse split. Just trying to do some research and see where vyne will go from here. Hm
Your stock values stay the same, however you lose your multiplier(amount of shares) you own. Great video, well explained. If any company I invest in does a reverse split then I will sell up and move on as its a fabricated way to increase the stock price in giving an illusion that a company is bigger or doing better than it actually is. Its a deceptive act as far as I'm concerned.
if you're interested in "talking stocks/trading in general", that's the entire idea behind my private trading community (which you are welcomed to join) which you can find here claytrader.com/team/
Great video. I just had CEI do a Reverse-Split at 25-1 and I’m new to all of this so I was searching for answers after seeing my shares drop dramatically. Thanks for the info.
There was this biotech stock that halted today, so I was like "what is up with this stock to where it has gone from 11 bucks a share to over 30 a share in a couple minutes?" so I looked up the stock, found their website, and the website had a Reverse Split announcement in it, so I found this video, and heard your explanation, and even though I traded in it, your video explanation caused me to trade the stock based on the info in this video, and not by "wow, this stock looks like it just might go to who knows how far up"...so thanks so much for making this video...here, let me find that ticker, because I don't remember it...HSDT ...it's Helius Medical Technologies...thanks Clay, and hope you and yours are doing well!
@@claytrader the bummer is I just started on Robinhood trading and ACB was my first investment 🙃 I guess its part of experience on learning. Thanks for the video explaining it.
Great info. I just had one my investment do a split reversal and it threw me off. I think I’m going to trade first thing this morning and move my money.
Hey, a question plz. In case you own a number of shares that isn't divisible by the ratio of the RS, what happens? (for example the ratio is 3:1 while you own 1/2/4/5/etc. shares)
ClayTrader I know right? I had purchased 100 shares of HMNY @ $.83 per share. They did a 1: 250 reverse stock split. I now have one share and it’s worthless. in doing that process, where did the money actually go?
Im new to investing but have been invested in SLBG for 1 year or so now. They changed to CNXA and then had a reverse split 10-1. My market value has decreased so much and I have no idea where it went? This video was great because I understand better what a reverse split is but am not sure why my market value has changed so much. Is this due to its poor performance or am I missing something here? At the end of the day, I'm invested in this company because I believe in it and would like to learn more about investing. I would very much value a reply from you!
Thank you so much for explaining this because of I was so mad when my share number is go down I said I it's not my real share number where is the rest of my share, but I feel good now thanks again.
Nice video. I'm a low level employee of a major company; they may have to consider a reverse stock split. I didn't know what that was. I was just curious; thanks for helping me understand the basics.
I loved my Glad stock, I’ve been making money and was about to add more and today they’re doing a reverse split and my stock price was double, I was blinking and thinking…. Now I am scared to think about Monday and what happens to my Money then?
Not a trader, traditional market in my opinion is for traders. Not long term i just learned my lessin thank yiu very impormative video. You gain a subs from me✌ and be watching old videos of yours bossman💪💪👍✌✌
Claytrader. Answer this one for us. If we buy 100 shares in johnson&johnson. And the shares went up. Do we get the dividend share automatically or do we have to buy the dividend share separately to receive the dividend gain.?.
Great video thank you for helping me better understand what an R/S is. I'm a little worried now however because I just got in on RNVA and they're voting on potentially doing in RS this week they are currently at .023 a share. I got in at .01138 a share.
Is it common for penny stocks to do a reverse split before potential merger? And in this case is it bullish in your opinion? "Seneca stockholders are urged to vote in support of the merger by voting FOR each proposal presented at Seneca’s Special Meeting on April 9, 2021, including approval of a reverse stock split which is a key condition to closing"
What happens if company EE (share price $3) filled for bankruptcy and another company DD (unlisted) bought it, then EE got listed again on exchange. Now the share price listed for $17. But EE did a reverse stock split by 100:1. Say i had 1000 shares of EE before split, after split i have 10. So why EE listed so low price?
ClayTrader ok ill try with an example. Company name EE (stock trading at 3.35) business not doin good. Filed for bankruptcy Now after bankruptcy proceedings another company bought this EE company Now they are relisting EE on exchange again. They said well do a reverse split of 100:1 So if i had 1000 shares of EE, after the Rsplit ill get 10 shares Now the price of one share will be thats im asking? Will it be 335? Or can be way less.
In a short position this is a good strategy, but in the case of ANY the situation it was different, because the two next days was an oportunity to get long and take good profits.
Well, I agree, I'm refering to make a strategy when the reverse split take place, if I think the stock going down in price, well I enter in a short position.
Hi can you help me on this. I have full math included and what the chart says. TWOU Average stock price buy in - $0.2476 1:30 split for my 340 shares = 11.33333 0.2476 x 30 = $7.42 price avg cost June 14th on chart shows max price $7.23. Does this mean I have to gain 19 cents on the stock to break even?
NAS.OL brought me here as well. Perfectly explained, thank you! Are reverse splits more occurring these days since covid? BTW I still believing in this stock, Scandinavia will recover quickly after covid so I'm no going to sell at this moment.
If a company is undergoing a reverse split or planning on doing do. From a share holder perspective would I be wanting to hold or try to sell my shares to avoid any more decline in shares
With the understanding of a stock that is undergoing a r/s is indeed bearish. However, one could question that with future strength in the stock is an offering something that could be in the cards? Or does policy even allow such?
+Magnum All these companies that do Reverse Splits are doing so based on "future strength" (that's an easy thing to tell shareholders). Is it possible? I guess. Does it happen often? Not at all.
I understand what ya mean with the reverse split. I just experienced a 35-1 reverse split on my Neptune Wellness. But, I had spent $15 on it & it reduced to -97% at the time of the split which reduced my shares to .14327 which is currently worth $0.38. Do you think this business going to tank or you think they will rally later. Think I lost most of my money on this particular stock & will not reclaim. Any information will be helpful. Thank you!
So BBBY just announced they want to do this. Are they considered a penny stock or big board? Price is sinking of course. Is there any hope or anything unique about a “big” company do a reverse split?
Hey Clay thank you so much. This will happen to me with Aurora Cannabis (ACB.TO) I have 700 shares and they will carry out a 12:1 reverse stock split !! I dont know what to do tbh but let's see 😩
So if a stock is floating under a dollar and the NYSE says hey you gotta get that back up to above $1 for 30 days, if you wanna avoid being delisted. That company decides to do a reverse split. In this scenario what normally happens to the stock after the split (does it go up or down in terms of the new value of the stock?) So it was at .80 cents, and now it’s at $3.00. Does the $3.00 stabilize there or does it generally go up or down after the split? Do you have examples I can go look at?
if you're interested in "talking stocks/trading in general", that's the entire idea behind my private trading community (which you are welcomed to join) which you can find here claytrader.com/team/
Got on UCO revers split 1:25 but had stop loss which worked on the day of split. Money was on my account but next day my broker put me in short for 768 papers and said that as it was split and system got a signal to sell it is sold my 32 papers and rest in short for 768 papers. I think they cheat me. Because in system I can see only my sell and profit for 800 papers and then just a short position for 768, no any sign of sell for 32 papers. And I think stop loss could not cause opening position in short. Probably it’s illegal. What do you think? Is anyway to proof that I am right?
if you're interested in "talking stocks/trading in general", that's the entire idea behind my private trading community (which you are welcomed to join) which you can find here claytrader.com/team/
if I now have fewer shares from a reverse split won't that mean I lose my multiplying power on any gains of that share price? Such that a $1 increase in a share price will now be multiplied across fewer shares that I own and produce less return on the investment?
Great video Clay. Question: Aurora Cannabis (ACB) TSX: is going to be consolidating their shares 12:1 this may in order to meet & enlist in the NYSE. Considering what you've mentioned, do you consider that a good move? their mission is more exposure to investors in a bigger trading platform. Let me know your thoughts Thanks again!
if you're interested in "talking stocks/trading in general", that's the entire idea behind my private trading community (which you are welcomed to join) which you can find here claytrader.com/team/
Hey. Great vid man. I got that I think. However I met this term now while a I am starting to learb about shorting and i get the rough meaning (it is just opposite to classic "long" way) So is a reverse split very bad for a short position? Thank you.
If you were holding at a loss leading into a r/s, would you sell prior or hold and hope with solid news due in the year to come. Obviously with a huge loss of profit potential due to less shares. simple arithmetic
Problem with R/S's is, if the price goes down after the price adjustment has taken place, you are literally losing shares at that point in time. They truly do put people in a nasty situation.
literally 9.5/10 its a lose-lose situation for the s-holder. lesson learned when going long on a penny stock with signs of potential success. Will try to mitigate in future and/or change strategy. For now will take the loss and back another with a little more dd. Thanks mate
If you like my free content, and plan on continuing to trade in the world of penny stocks, then I'd highly recommend this - claytrader.com/courses/penny-stock-survival-guide/
So I guess what’s confusing me is how do you know when to sell so you don’t lose out on money? How do you figure out how much each share was when the stock split happened? I bought 300 shares at .1551. Then they did a 20:1 split but I’m having trouble finding at what point they did it? Does this mean that each of my shares now is 3.10 so I need to wait until the stock goes above that to sell correct?
Read through comments and I’m just unsure what happens to remaining shares. Eg I have 25 shares, there’s a 4:1 split. Do I now own 6 shares only, and 1 disappears or do I have 6 and 1/4 shares?
So on it’s own a reverse split isn’t really good or bad, it’s just the difference of saying I have one hundred cents or one dollar. But it’s a symptom not the disease, in that companies usually perform reverse splits after their share price has dropped significantly.
What happens to shares when the split isn't an even break? Example 100 shares RS 18:1 down to 5.5555. On thinkorswim it only shows 5 shares. Do you lose the .5555 to rounding or...?
I'm curious, looking at CIDM right now, they did a 1:10 reverse split on May 9th 2016. On the chart the stock went form $2 on the 9th and closed at $1.60 on the 10th. Being real new to this I'm trying to understand why the stock didn't go to $2 x 10 on the 10th? There is no way it jumped and fell $18.40 in one day. Thanks
These are the types of things I talk about with premium members, and if you're interested in "talking stocks/trading in general", you are more than welcomed to join my private community - claytrader.com/team/
Thanks for the lesson bro. I got too happy when XGTI did a reverse split today and almost crap my pants thinking I was profitting.
Yeah, it happens to many, so no worries lol
J
So there is no profit just the shares change price and stay the same value?
Same here 😖 so sad
@@XxiihrsiixXxyeah im so confused, i have a 1 for 100 reverse stock split. I had 849 shares and went down to like around 17 shares. If I sold my stock at the price of around say 100$. Do I still profit the same or is it bc my shares went down I profit less?
Straight to the point ! Thank you so much man. Very helpfull and as always.
You're welcome.
Absolutely perfect,answered my question completely. Couldn't ask for a better explanation :>)
Glad it could help!
I was looking at a stock and researching before purchase and saw they were doing 6-1 reverse split in a weeks time. I had no idea what it was so hopped on YT. I watched 3 other videos before yours and this video was far superior and explained it so much better. Thanks Clay 😊
Glad I could help!
I gave a like the moment i heard the first sentence. That’s exactly why i’m here lol
cheers
I gave a like as soon as I read your comment.
Yes. He is spot on 😅
I learned of reverse split with Aurora Cannabis. Won't soon forget it. The logic I understood but thanks for the summary at the end of the video confirming that they are generally not a good sign
Never fun to go through one.
I thought I made a fortune today from my USO shares, i was going crazy asking what happened to my shares. thanks for this video, thought me a bunch.
Bummer!
Thanks for the info, I’m new to stocks, but question I also have USO and they did a reverse split , I bought 13 shares for October 13th $9 call does my money have a chance to recover or is it lost? It’s been at 1 cent for weeks
Thanks for the video. I was thinking a RS would be something like this, and after hearing you explain it, I was right, but with much more clarity from you. Appreciate it.
Thanks for watching
This made a lot of sense! Thank you. I like trading without emotion ~
Glad it was helpful!
You are a very knowledgeable individual when it comes to the market.
I try
Even though after this video I wanna cry! Thanks for this easy explanation 👍🏽
Thanks for watching (and sorry for your situation)
I can be a teacher now . I got everything what I needed. You are great!
Nice!
Thank you, i was freaking out, i am in a stock that just had a reverse split before close.
Ouch.
@@claytrader stock aln 2,000 shares at 0.1470. They reported a name change and reverse split. I bought in before the split announcement. I will be getting out as soon as i can and staying away from this stock. Thank you for the reply and info video.
Chalk it up as a learning experience.
Thank you. I have CTRM and I went from 166 to 16 reverse split . A 1 of 10 split amount. That took place on May 28 this year. You explain was easy to understand. Thank you.
Glad it could help!
Thanks Clay, I have a Penny Stock that went from 12,500 Shares down to 12 Shares, after Splitting Twice, Guess I'll just hold on to it. Thanks for the explanation.
Ouch... hopefully a learnable experience for you.
Don’t invest in penny stock made to take your money
I had approximately 2000 shares of a stock that did a 1 for 50 reverse split leaving me with only 45 shares- I see that my cost price went up, but wouldn't it actually hurt me in the end, if I bought more of this stock to help bring down my cost? Realistically I don't see this stock EVER reaching what my new cost price is. Thanks for the help!
Happy to help.
The intro was super accurate
Good
Superrrr accurate
Thank you clay for explaining that. It happened to me twice with two separate penny stocks and every time I lost shares and they increase the value of the shares that was left however not long after that happened they diluted the market again with massive amounts of shares and the value of the stock Drop Like a Rock and you're stuck. Needless to say I've learned a hard lesson
Thanks for sharing your experience. You are not alone in this. A hard lesson to learn, but glad to hear you have learned it.
thanks man! just experienced a reverse on ACB.
Liam Ovadiah lol! Me too! I didn’t know wtf just happened. My 50 shares turned into 4😫
same here!!! i thought i made 10K!
but its not i guess.. am i righht?
Frank LaMar Jr Fr bro I had like 11 and now I don’t got nothing😂
ACB brought me here !
Literally the same reason I'm here..had 200 now 17
Thank you for explaining this to me! I prefer the way that you broke it down rather than a chart. Kudos
Glad it was helpful!
Hi Clay, your 101 videos are really insightful, thank you!
My question is this: Why would a company do a reverse split? How do they benefit from having less shares? Why is this an indication that the company isn't doing so well?
HIgher share prices make life easier, more on that here claytrader.com/videos/how-a-company-benefits-from-the-stock-market/
I'll check it out now. Thanks again!
You're welcome.
I am A new Trader I have been watching videos for about 3 and I understand the way you explain it better than the other guys
Thanks for the feedback. Glad they could help!
So typically, would you wanna hold onto it throughout the reverse split? I'm in on VYNE and they're about to reverse split.
Just trying to do some research and see where vyne will go from here. Hm
That depends on your research and strategy/goals.
What happend with your vyne shares and what did you do?
Im also interested in the outcome
Your stock values stay the same, however you lose your multiplier(amount of shares) you own. Great video, well explained. If any company I invest in does a reverse split then I will sell up and move on as its a fabricated way to increase the stock price in giving an illusion that a company is bigger or doing better than it actually is. Its a deceptive act as far as I'm concerned.
Thanks for sharing
@@claytrader You're welcome, thanks for doing such a good I formative video and thanks for taking the time out to reply. Much appreciated
@@jamesbrand5293 cheers!
Thanks Clay. What are your thoughts with whats going on now with the ACB stock with their May 11 reverse split?
if you're interested in "talking stocks/trading in general", that's the entire idea behind my private trading community (which you are welcomed to join) which you can find here claytrader.com/team/
Great video. I just had CEI do a Reverse-Split at 25-1 and I’m new to all of this so I was searching for answers after seeing my shares drop dramatically. Thanks for the info.
You're welcome. Glad it could help.
It's happening again
Very timely message Clay. Thank you.
+dragland7268 You're welcome
thank you! ORC is just going to pass through one! 5:1 just as your example!
Thank you so much for the teaching! appreciate!
And thank you for watching!
What if you have 23 shares? WhTs going to happen to the 3 remaining shares?
They'll be reduced to partials
Sometimes no fractional shares, they're reduced to nearest whole in my share case. So just lost in space never to be found
There was this biotech stock that halted today, so I was like "what is up with this stock to where it has gone from 11 bucks a share to over 30 a share in a couple minutes?" so I looked up the stock, found their website, and the website had a Reverse Split announcement in it, so I found this video, and heard your explanation, and even though I traded in it, your video explanation caused me to trade the stock based on the info in this video, and not by "wow, this stock looks like it just might go to who knows how far up"...so thanks so much for making this video...here, let me find that ticker, because I don't remember it...HSDT ...it's Helius Medical Technologies...thanks Clay, and hope you and yours are doing well!
Glad it could help!
ACB brought me here 🌿☘🍀🌲🍃
bummer!
@@claytrader the bummer is I just started on Robinhood trading and ACB was my first investment 🙃 I guess its part of experience on learning. Thanks for the video explaining it.
@@Deep4kinThoughts cheers, all you can do is learn from it
Great info. I just had one my investment do a split reversal and it threw me off. I think I’m going to trade first thing this morning and move my money.
Glad it could help
Office Depot brought me here...
Ouch....
Did you Get in Before the Reverse Split or After the Reverse Split
thank it just happened to me but I didnt have enough for the split. only had ten shares and I needed 40 to make one WTF happens now?
Not good things happen!
6:59 *I was going to say that*
Good thing I said it for ya then ;-)
Hey, a question plz.
In case you own a number of shares that isn't divisible by the ratio of the RS, what happens?
(for example the ratio is 3:1 while you own 1/2/4/5/etc. shares)
You'll get "fractions" of shares. So, in theory, you could end up with 1/2 of a share.
Where my UGAZ people at
Probably undergoing another reverse split.
lol
Your videos are truly the best .
Thanks for the kind words.
MoviePass brought me here. 😕
Ouch....
ClayTrader I know right?
I had purchased 100 shares of HMNY @ $.83 per share. They did a 1: 250 reverse stock split. I now have one share and it’s worthless. in doing that process, where did the money actually go?
Into the company's pocket.
Yea me too.i think they are going to have another one soon
Same thing with RNVA!
Thanks for sharing, can't do the sell call option anymore.
What do you mean?
@@claytrader I can not do a sell-call option .
roger that
DRYS lolololol
The KING of reverse splits!!!!
Im new to investing but have been invested in SLBG for 1 year or so now. They changed to CNXA and then had a reverse split 10-1. My market value has decreased so much and I have no idea where it went?
This video was great because I understand better what a reverse split is but am not sure why my market value has changed so much.
Is this due to its poor performance or am I missing something here?
At the end of the day, I'm invested in this company because I believe in it and would like to learn more about investing.
I would very much value a reply from you!
Most times, "poor performance" is the reason.
Thanks Clay, Im diving into the world of stocks, and I value these types of videos. New Subscriber alert !
Welcome to the channel Mark!
Good one well explain
Thank you 🙂
Thank you for explaining that! Awesome video!!
You're welcome. Glad it could help.
very well explained nice
Cheers
came from UCO... Thanks for the explanation
Thanks for watching.
Great job bro !
Thanks!
Thank you so much for explaining this because of I was so mad when my share number is go down I said I it's not my real share number where is the rest of my share, but I feel good now thanks again.
Glad I could help
i subscribed with eleven accounts for your awesome trading lessons
Glad you're enjoying!
Very informative . Video
Glad it was helpful!
Nice video. I'm a low level employee of a major company; they may have to consider a reverse stock split. I didn't know what that was. I was just curious; thanks for helping me understand the basics.
You're welcome.
I loved my Glad stock, I’ve been making money and was about to add more and today they’re doing a reverse split and my stock price was double, I was blinking and thinking…. Now I am scared to think about Monday and what happens to my
Money then?
Your money will more than likely be going down.
Good Video. Went thru 5 videos and I only understood yours. You made it simple and clear. Thanks. Moviepass stock lol doing a reverse split tomorow.
Yeah, HMNY is now crushing many after the reverse split.
Well explained indeed!!!
Good!
Not a trader, traditional market in my opinion is for traders. Not long term i just learned my lessin thank yiu very impormative video. You gain a subs from me✌ and be watching old videos of yours bossman💪💪👍✌✌
welcome aboard!
Hello clay, this also explains that average down before the reverse split technically wouldnt be of any benefit. Since your average also goes up.
Correct
My Question is How do I Make The Profit....Do I Enter Before the Reverse Split Or After
You make profit when you sell your shares (assuming you sell for more than you bought for).
@@claytrader Right But That's After I I'll Already Took A Position Before the Split on the Long Dip
@@anthuanjm same principle applies
Thanks for explanation 👏
Ameri Holdings brought me here 😊
Thanks for watching
Claytrader. Answer this one for us. If we buy 100 shares in johnson&johnson. And the shares went up. Do we get the dividend share automatically or do we have to buy the dividend share separately to receive the dividend gain.?.
No, you still get the dividend no matter what the stock price does.
Checking this out since IVR just did a 8:1 reverse split
Ouch!
Great video thank you for helping me better understand what an R/S is. I'm a little worried now however because I just got in on RNVA and they're voting on potentially doing in RS this week they are currently at .023 a share. I got in at .01138 a share.
Welcome to the world of penny stocks. I'm guessing everyone is proclaiming how "positive" a R/S will be. It's NOT.
This is useful, because I am trying to research QQQY and what the worst case might be.
Glad it was useful!
Is it common for penny stocks to do a reverse split before potential merger? And in this case is it bullish in your opinion? "Seneca stockholders are urged to vote in support of the merger by voting FOR each proposal presented at Seneca’s Special Meeting on April 9, 2021, including approval of a reverse stock split which is a key condition to closing"
Penny stocks reverse split all the time. Which is why they are garbage.
HMNY just did one. I freaked out. I watched this video. I'm okay now but still at a loss. Thanks man.
Glad it could help.
What happens if company EE (share price $3) filled for bankruptcy and another company DD (unlisted) bought it, then EE got listed again on exchange. Now the share price listed for $17. But EE did a reverse stock split by 100:1. Say i had 1000 shares of EE before split, after split i have 10. So why EE listed so low price?
Sorry, you lost me.
ClayTrader ok ill try with an example.
Company name EE (stock trading at 3.35)
business not doin good.
Filed for bankruptcy
Now after bankruptcy proceedings another company bought this EE company
Now they are relisting EE on exchange again.
They said well do a reverse split of 100:1
So if i had 1000 shares of EE, after the Rsplit ill get 10 shares
Now the price of one share will be thats im asking? Will it be 335? Or can be way less.
I go over the math in the video.
What if I have let say 97 unit shares before a 5:1 reverse stock split? Would it be 95 ÷ 5 = 19 units only? where the remainder 2 units go?
They can give you partial shares.
So the dividends that you're receiving will be reduced as well since you are now holding a smaller number of shares.
I doubt a dividend paying company is doing a reverse split.
In a short position this is a good strategy, but in the case of ANY the situation it was different, because the two next days was an oportunity to get long and take good profits.
I'm not sure what you are referring to. A "reverse split" is not a strategy. It's just a dynamic of the market that companies can use.
Well, I agree, I'm refering to make a strategy when the reverse split take place, if I think the stock going down in price, well I enter in a short position.
BTW thank you for the answer.
I also enter a short position if I think a price is going down.
What happens if your holding options? Could you do a video on that?
That would be a question for your broker to see how they handle it.
Great video. Cleared my confusing. Thanks
Glad it could help.
Hi can you help me on this. I have full math included and what the chart says.
TWOU
Average stock price buy in - $0.2476
1:30 split for my 340 shares = 11.33333
0.2476 x 30 = $7.42 price avg cost
June 14th on chart shows max price $7.23.
Does this mean I have to gain 19 cents on the stock to break even?
Looking further back I can see a strong possibility of profit but over 1-2 months depending on luck.
I prefer 1-2 days 😅
You need a whole lot of luck when it comes to making money on reverse splits.
NAS.OL brought me here as well. Perfectly explained, thank you! Are reverse splits more occurring these days since covid? BTW I still believing in this stock, Scandinavia will recover quickly after covid so I'm no going to sell at this moment.
I think they're pretty normal.
If a company is undergoing a reverse split or planning on doing do. From a share holder perspective would I be wanting to hold or try to sell my shares to avoid any more decline in shares
That's up to your belief in the company.
Hi @ClayTrader, nice video. Wondering if you can do a visual video on how Warrants effect a stock?
Good idea. I'll see what I can do.
@@claytrader thanks! Looking forward to it. Just subscribed too. Didn't realize I was still unsubscribed, even though your videos keep showing up.
Cheers
When the company does the reverse split, does it means that the price they are showing in the market is already the consolidated price? I'm confused.
After the reverse split happens, the market will reflect the new price.
Great Job Clay and thanks you !
Cheers!
Thankyou. You explained this very simply so it’s understandable 😁
Thanks for watching!
With the understanding of a stock that is undergoing a r/s is indeed bearish. However, one could question that with future strength in the stock is an offering something that could be in the cards? Or does policy even allow such?
+Magnum All these companies that do Reverse Splits are doing so based on "future strength" (that's an easy thing to tell shareholders). Is it possible? I guess. Does it happen often? Not at all.
I understand what ya mean with the reverse split. I just experienced a 35-1 reverse split on my Neptune Wellness. But, I had spent $15 on it & it reduced to -97% at the time of the split which reduced my shares to .14327 which is currently worth $0.38. Do you think this business going to tank or you think they will rally later. Think I lost most of my money on this particular stock & will not reclaim. Any information will be helpful. Thank you!
I know nothing about that company, sorry!
Thank you
Very useful! Ended up here to find out what ENT is doing! Cheers!
Cheers
So BBBY just announced they want to do this. Are they considered a penny stock or big board? Price is sinking of course. Is there any hope or anything unique about a “big” company do a reverse split?
I mean ya never know, but generally speaking, the odds are highly against the shareholders.
Hey Clay thank you so much.
This will happen to me with Aurora Cannabis (ACB.TO) I have 700 shares and they will carry out a 12:1 reverse stock split !!
I dont know what to do tbh but let's see 😩
Ouch
@@claytrader HAHAHHA :D
I have Aurora cannabis too it's literally the worst stock I ever invested in
@@jalinaghani2562 so true. for me too :(
Thank you sire 😃
Most welcome
GE is voting on this in a couple of months but it doesn't follow the normal reasons. Any advice?
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So if a stock is floating under a dollar and the NYSE says hey you gotta get that back up to above $1 for 30 days, if you wanna avoid being delisted. That company decides to do a reverse split. In this scenario what normally happens to the stock after the split (does it go up or down in terms of the new value of the stock?) So it was at .80 cents, and now it’s at $3.00. Does the $3.00 stabilize there or does it generally go up or down after the split?
Do you have examples I can go look at?
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UCO, an etf just did a 1:25 reverse split. am I doomed? this is mainly due to crude crash.. worth staying in .. or should I get out ASAP?
Reverse splits are not good, most of the time.
is a '1 for 30' a reverse split? and would that be written 1:30? also, wouldn't the example be 1:5 instead of is in the video (5:1)?
Could be.
What are your thoughts on Camber Energy inc.? In the past they did a reverse split..
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Got on UCO revers split 1:25 but had stop loss which worked on the day of split. Money was on my account but next day my broker put me in short for 768 papers and said that as it was split and system got a signal to sell it is sold my 32 papers and rest in short for 768 papers. I think they cheat me. Because in system I can see only my sell and profit for 800 papers and then just a short position for 768, no any sign of sell for 32 papers. And I think stop loss could not cause opening position in short. Probably it’s illegal. What do you think? Is anyway to proof that I am right?
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if I now have fewer shares from a reverse split won't that mean I lose my multiplying power on any gains of that share price? Such that a $1 increase in a share price will now be multiplied across fewer shares that I own and produce less return on the investment?
Right... they're vicious
Great video Clay. Question: Aurora Cannabis (ACB) TSX: is going to be consolidating their shares 12:1 this may in order to meet & enlist in the NYSE. Considering what you've mentioned, do you consider that a good move? their mission is more exposure to investors in a bigger trading platform. Let me know your thoughts Thanks again!
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Hey. Great vid man. I got that I think. However I met this term now while a I am starting to learb about shorting and i get the rough meaning (it is just opposite to classic "long" way) So is a reverse split very bad for a short position?
Thank you.
No. It's neutral because everything changes in proportion.
Thank you for clearing those COB webs for me, it's funny because that's exactly what happens and the amounts
Glad to help out and clear some cob webs!
If you were holding at a loss leading into a r/s, would you sell prior or hold and hope with solid news due in the year to come. Obviously with a huge loss of profit potential due to less shares. simple arithmetic
taking into account, interest from institutional investors at more attractive price
Problem with R/S's is, if the price goes down after the price adjustment has taken place, you are literally losing shares at that point in time. They truly do put people in a nasty situation.
literally 9.5/10 its a lose-lose situation for the s-holder. lesson learned when going long on a penny stock with signs of potential success. Will try to mitigate in future and/or change strategy. For now will take the loss and back another with a little more dd. Thanks mate
If you like my free content, and plan on continuing to trade in the world of penny stocks, then I'd highly recommend this - claytrader.com/courses/penny-stock-survival-guide/
So I guess what’s confusing me is how do you know when to sell so you don’t lose out on money? How do you figure out how much each share was when the stock split happened? I bought 300 shares at .1551. Then they did a 20:1 split but I’m having trouble finding at what point they did it? Does this mean that each of my shares now is 3.10 so I need to wait until the stock goes above that to sell correct?
They do it on a certain date. It's all announced beforehand.
Read through comments and I’m just unsure what happens to remaining shares. Eg I have 25 shares, there’s a 4:1 split. Do I now own 6 shares only, and 1 disappears or do I have 6 and 1/4 shares?
you'll have partial shares
So on it’s own a reverse split isn’t really good or bad, it’s just the difference of saying I have one hundred cents or one dollar. But it’s a symptom not the disease, in that companies usually perform reverse splits after their share price has dropped significantly.
What happens to shares when the split isn't an even break? Example 100 shares RS 18:1 down to 5.5555. On thinkorswim it only shows 5 shares. Do you lose the .5555 to rounding or...?
Lose shares
I'm curious, looking at CIDM right now, they did a 1:10 reverse split on May 9th 2016. On the chart the stock went form $2 on the 9th and closed at $1.60 on the 10th. Being real new to this I'm trying to understand why the stock didn't go to $2 x 10 on the 10th? There is no way it jumped and fell $18.40 in one day. Thanks
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Hi AMC is planning to merge its Ape equity shares then do a 10:1 RS split. What are your thoughts on that?
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