Sitestar (SYTE) – Reverse Split – $15 Free Upside

Current Price – $0.125

Post Reverse Split Price – $15

Upside – $15

Expiration Date – TBD

Reverse Split Announcement

This idea was shared by Thinley.

 

This is a straightforward $15-lying-on-a-sidewalk type of situation. Sitestar is carrying out 125:1 reverse stock split and each fractional share will be rounded up to the nearest new share:

No fractional shares will be issued, and no cash or other consideration will be paid.  Rather, any fraction of a share of Common Stock that otherwise would result from the Reverse Stock Split will be rounded up to the next whole share of Common Stock.  That is, stockholders who otherwise would be entitled to receive fractional shares because they hold a number of pre- Reverse Stock Split shares of the Company’s Common Stock not evenly divisible by one hundred twenty five (125), will have the number of post-Reverse Stock Split shares of the Company’s Common Stock to which they are entitled rounded up to the next whole number of shares of the Company’s Common Stock.

Thus by buying one pre-reverse share investors are expected to get one post reverse share, which theoretically should trade at 125x current prices. Important note – beware of transaction costs of buying and selling shares as these might eat the whole upside.

Timing is not certain yet – required documents have been submitted to FINRA and now company is waiting for FINRA to declare the Effective Date.

6 COMMENTS

  1. Terence

    The trading volume today is a whopping 21 shares, all or most of which are 1 share blocks — one of them is me! and the rest probably are our website members. Thank you Thinley and DT for this “$15 lying on a sidewalk”.

    Risks: do only with free trades, price might be way lower than 125x, deal can be modified or canceled (if management finds out too many 1-share holdings?!).

  2. Mark Smeets

    I noticed today that on my accounts the 1 sitestar shares are gone, the reverse split has gone through. I don’t have a new share though. Tomorrows statement will probably bring clarity.

      1. dt

        Any clarification from the broker why?
        Or did this apply to record holders only?

  3. slow

    Some of my accounts got the shares, some didn’t. Not sure why. Wait some days to see.

Leave a Reply

Your email address will not be published. Required fields are marked *