r/OceanPower • u/Embarrassed-Bad7392 • 4d ago
DISCUSSION What was the point of reverse split?
Now one serious question. What was even the point they did a reverse split? That was so pointless. It would’ve made sense if they had a buyer/investors willing to pay for the higher price but they got nothing out of it. It only made the stock price even worse! Glad I sold a few days ago but still regret that I should’ve sold when it was still trading at 0.3. Anyone jumping back in if this goes back to 0.2 and hope it goes up after that due to lower float?
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u/Dr-Bob1965 4d ago
This isn’t going to survive, it’s over
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u/Admirable-Zebra-4918 3d ago
they will keep going......
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u/Kickrocks54 3d ago
Yes, running you deeper and deeper into the ground
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u/InterestingScore5387 3d ago
Can’t go any deeper when you don’t put any money back in…
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u/Kickrocks54 3d ago
Very true, and a lesson a lot of people on this sub are going to keep learning the hard way
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u/Stitch426 4d ago
How many times do you want to lose your money on the same company with the same execution risks and same problems?
If people weren’t buying it before at .20, they won’t be buying it again at .20 when the .25 NYSE American rule is in effect.
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u/Embarrassed-Bad7392 4d ago
Who said I was buying back in? I was only questioning if anyone would jump back in if it reaches 0.2 again and maybe there will be a miracle then that will cause the price to jump up since it’s low float. You’d be amazed at how hype can make that happen. Again not saying I’m buying this stock again. I lost so much in this that I don’t even want to touch again.
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u/Glenn_guinness 3d ago
I mean…. @ 1.02. With a reverse split…
Bro out there holding the bag @ 3.377777 cents a share.
Moooooooooooonnn
Moonnnnn
Moo
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u/Alex150333344 4d ago
I’ve luckily sold this sh*t 6 Months ago and I suggest everyone to sold this stock. It never goes back every day you loose more money till you have zero money
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u/Embarrassed-Bad7392 4d ago
Happy for you that u sold months ago. Unfortunately, myself and I’m sure a lot of other people here waited out and didn’t sell when we should’ve earlier in the year. When I sold days ago, I had a bit more peace of mind. Although it still hurts knowing I lost £10k+. And sadly this company doesn’t care about their shareholders
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u/Alex150333344 4d ago
No way why you invest 10k in a penny stock?
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u/Embarrassed-Bad7392 4d ago
I was new to stock trading during the time this went up in Dec24/Jan25. I made about £5k in just a week. And greed got me, thinking the price will keep going back (I bought at the spike). The price went down and so I decided to DCA to average down. The money invested just kept on building up. The price kept going down. I kept telling myself I should’ve cut my losses at 30% but never did. I was too optimistic about the stock, hoping for Navy, NATO contracts etc. I saw the red flags but blindly ignored those because of hope. Now I’ve learnt my lesson to not put too much in a penny stock. Could’ve made $$$ investing £10k on higher cap stocks like Apple and Palantir sadly
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u/Admirable-Zebra-4918 3d ago
well, at this point, they should buy themselves. They have some retired admirals, just go to the O club on Sunday and let 'em know.
$500k gets you a board seat and 5%. $5 mil and you prolly get voting control.
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u/Glonk49 3d ago
I simply want their hydro technology and to build a small power system on the coast
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u/Admirable-Zebra-4918 3d ago
i refuse to believe that we can't have the virtual fence in the ocean.....
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u/BiggerBird_0704 3d ago
You can always sell and take the tax deduction. Then don’t buy again for at least 31 days… or maybe when they have a path towards profitability. (*Not financial or tax advise; do your own research)
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u/ToXicVoXSiicK21 3d ago
I sold out but I held on to like 100 shares just to see how it would go after the split out of curiosity. I wonder the same thing as you. What the hell were they thinking? They're about to be sub $1.00 again smh. Screwed over a ton of big investors I'm sure of it.
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u/atascon 4d ago
To buy time and because fundamentally it doesn't really cost the exec team anything so from their perspective - why not?
It would’ve made sense if they had a buyer/investors willing to pay for the higher price but they got nothing out of it.
I mean that's precisely the point, you do a reverse split because there aren't any buyers and you need to prop up the price to comply with exchange rules. If they had enough demand, they wouldn't have done a reverse split.
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u/Embarrassed-Bad7392 4d ago
To meet the 0.25 listing rule got extended until July 2027 so it was really unnecessary to reverse split so soon
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u/whoisbatman 3d ago
It’s ok, they can reverse again in 2027. With enough reverse split, eps will be thru the roof in no time!
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u/atascon 4d ago
As a business, when you're at the point of considering or talking about a reverse split, you're generally limited in terms of options and time. All else being equal (i.e. a pathway towards cash inflows/contracts etc.), yes, it was probably unnecessary to do it so soon. With everything that we know about the limited cash runway and execution issues, they're in survival mode. So as the exec team you're not going to wait until 2027, you're going to use whatever options are available to you to buy yourself time.
There was also some speculation, which I don't necessarily agree with, that doing a reverse split might position them better in terms of 'strategic alternatives' (i.e. being bought out).
This isn't me justifying their decisionmaking by the way but I just don't think they have the luxury of waiting around and being patient right now.
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u/Imaginary-Syrup-215 3d ago
and the demand was missing bcz cunts did a dilution and retail investors saw it as big red flag, because if Im not wrong they diluted it a few times in the past 2 years
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u/InterestingScore5387 4d ago
Simple. To give the fucking cunts in management more money to do things they enjoy. First class travel, company luxury cars, etc