I'm still learning the strategy for reverse split. R/s is not the end of the world. It is the end if you do not know how to play their game.
I'm learning as I go with
mdcnd right now. So lets say you have 100K of said stock before the split. It is r/s at 10:1 so that means you now have 10K only. What this tells me is if you are holding the bag, your best option is to buy more at the new lower pricing so that you can middle yourself up.
Now my strategy is to not be the one holding the bag. Before the R/s, it was at 20 cents and if I remembered correctly, she was trading at 2 cents which is equal to the 10:1 ratio. We go in and buy at the new lower pricing and have those who are holding the bag to buy more and when they all buys more, stock goes back up to reflect the 20 cents from the initial to help out those who took the loss by holding such bag.
On the flip side, as soon as the share from those holding the bag are release maybe this friday, it might dump. So another strategy is to buy low and sell high and do this every day for the next 2 weeks.
Mdcnd is trading @0.07 right now. I'm up 137% in one day so what more do I need? I'm selling her all at opener and wait for her to bottom again and go all in again. I could take money and play elsewhere but this stock here is weed and people like weed so the swing will be huge. We just need to get lucky and be on the right side of the fix.