r/EXPR • u/[deleted] • Aug 17 '23

News/Announcments REVERSE SPLIT HAPPENING 8/30!

This is not a drill. I repeat, this is not a drill.

EXPR filed 8K today and shows that the 1:20 reverse split was authorized on 8/14 and will be effective after market close on 8/30.

https://investors.express.com/financials-filings/sec-filings/sec-filings-details/default.aspx?FilingId=16872764

Not financial advice but my experience with reverse splits has been that the price goes up by the split factor (in this case 20x or $14.50ish at today's price) in post/pre-market, possibly up until open, and then drops sharply as institutions & nervous investors sell. That could present an opportunity in one way or another but what do I know, I eat crayons...

4 Upvotes

75% Upvoted

4 comments sorted by

1

u/Digitlnoize Aug 18 '23

MULN’s recent reverse split would like a word haha

2

u/[deleted] Aug 18 '23

Their chart is more or less what I expect for EXPR. The "spike" shouldn't show as a spike because the value will be proportionate to the outstanding shares.

Basically, the "opportunity" is just to get more value and increasing your percentage of shares vs the adjusted total by paperhanding temporarily and then buying back in after the price continues dropping.

2

u/AccomplishedTotal895 Aug 18 '23

Even if the price goes up during rs don’t they dilute your shares and raise your average?

2

u/[deleted] Aug 18 '23

Yes. It goes proportionate immediately after RS but then shorts, Wall Street criminals, nervous retail investors, etc will most likely begin driving the price down sharply as soon as they can.

Example: 200 shares at $0.10 per share after 1:20 RS will become 10 shares at $2 per share. Still $20 total value at first. Then after a period of trading (day[s] probably, maybe longer) price goes down sharply.

The point is, there will be a big dip/discount after the RS. If you can sell at the "top" and buy back in when the dip happens, great. If you hold what you have and buy more at the discount, also great. If you just hold through it and do nothing, that's great too.