Now I was set to profit, it says my average buy price was $7.77. Even with exchange rate, there is no way this can be true.
Help please!!!
How is this even possible? The maximum this share price has ever got to was $5.01 and I bought in at $2.59. Share is XSPA
There’s been a 1-for-3 reverse stock split which happened today. So you had 40, you now have 13 and one would have been sold as an odd number (39+1). The new shares would have essentially been worth 3x yesterdays closing price, then it looks like the markets crashing again, thus bringing the new price down. Hope that helps.
So everyone has now lost money on this share and there’s not much you can do about it basically? I bought in at $2.50 on June 5th so now lost 37% of my investment.
Bear in mind the FX rates (USD/GBP) are fluctuating up and down also, which will have it’s own affects to your trades. When as reverse stock split happens, nobody should lose money as the price will be reflected larger/smaller depending on the way the split works.
Say a share yesterday closed at $2.50, and you had 3 of them ($7.50), with the 1-for-3 split you should now have 1 share at $7.50 - if the price starts to go down after the split then that’s the way the market works.
In short, no, there’s nothing you can do unless you want to sell for a loss of wait it out for weeks and months to come. I’m sure others can weigh in if I’ve explained this incorrectly, or to clear up another point.
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I appreciate your help.
I just can’t understand how I bought in at $2.50 last week. The share price is now $4.61 and i’m now 40.66% down on my investment. Realistically, even if the split changes, it shouldn’t matter, I still should be 85% up on my investment
I am just baffled, you are investing in something, was not aware of reverse stock split or what it means for the stock price
In case 3 to 1 , means you get 1 share for each 3 shares you own. Thus 13 as explained by dear @mcwilliams91.
So if you paid 2.59$ for each pre split, after merger of 3 stock into 1 your technical average prices hikes to 7.7$ as we have 1+1+1 = meaning 2.59+2.59+2.59 gets merged into single unit paid 7.7$ in total.
Current market sell price is 4.69$ plus FX rate difference, you do the math but 40% negative seems about right.
To be fair if you’re new to investing you might not have come across stock splits.
However basically if the split never happened the $2.50 buy price would probably now be about $1.50 sell with the drop in the market, and the stock split of having the price tripled but having a third less shares doesn’t change anything.
Everything pretty much had a red day the past two days, and XSPA is pump and dump so probably would have fallen by itself without the US covid worries affecting everything.
Thank you. After I removed myself from the situation, I realised it was simply maths and the price has dropped by $3 a share. I should stop looking at the graph/numbers and focus on what it actually is
Thank you. Relatively new and never come across this before. Yes it has indeed dropped by about $3 per share so essentially the graph I am looking at bears no real resemblance so I need to look at the wider picture
Looking at the pre-market it looks like XSPA might open about a dollar up this morning.
I wish mine were up 20%+ on open!
Well before it got split the price was had gone from 2.50 down to ~1.68 (based on this screenshot) and then it got tripled to ~5 and then went down roughly a dollar to ~4.
