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We saw this with a few stocks already recently reverse splitting like $SXTC. Market's reaction lately to reverse splitting has been terrible. Why is that happening now? That hasn't always been the case. And why are so many companies already trading @ $1.00's deciding to split?

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Crypto4Life

@Liquidity4Life

Feb 27, 2021

Replying to @MasterBJones and @traderbjones

Yeah they were like one day from compliance. The sell off and cool down past two weeks and the announcement of a 6 for 1 reverse split today. So will be smaller float now at 3ish a share on Monday. Bring on the future pump!

1:16 PM · Feb 27, 2021Twitter Web App

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Because they are bordering on non compliant territory and need to raise share price artificially by making them scarcer (reverse split)?

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1. Smaller float. 2. Reverse Split price above average prices to be considered by new investors.

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Yeah, I love a good reverse split. Typically price moves down after a split happens to prices well below the pre-split price. I buy them and hold them. Worked for me on $WYY (bought the dip at $6.40 sold at $13) $BKYI (bought the dip at $2.89 sold at $4.23) and many others.

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"And why are so many companies already trading @ $1.00's deciding to split?" The market sell-off from repositioning and treasury yield brought them below $1.00 before they hit 10 days. They made it to 9 days so did not want to risk it and went ahead with the split before deadline

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Thank you for reminding me about SXTC. I had not looked at it in a couple days. Will add some here on the reopening play in China, wellness theme and their offering closed and lab opening. Might be a few months hold, but what's a couple of months for a 100% potential return.

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Not sure globally speaking but in the case of $sxtc it’s a crap company that doesn’t have much growth potential