US Highland, Inc. (PINK:UHLN) announced in a roundabout way voting a reverse split on Mar. 2. Some traders saw that as a sign UHLN would make some spectacular bounce. In a way it did.
Yesterday, UHLN closed up 82.29% at 0.035 on approximately 1.7 million shares. In many cases 82% up is indeed a significant bounce; except it depends on the point of view.
If a shareholder got in UHLN about a month ago, he wouldn’t be looking at an 82% increase as much as at an investment which is about 70% down.[BANNER]
The company has big plans for 2012, but at the moment it’s not generating revenue and has limited capital.
So far today, things don’t look much better. At the time of this writing UHLN is down 14.29% at $0.03. It’s not easy to say what will happen when the reduction of outstanding shares occurs.
Despite the elaborate phrasing UHLN used in the 8-K in effect it will be a 1 for 30 reverse split with the number of authorized shares remaining the same. Unless UHLN manages to dramatically change its situation, the chances of a return to prices from a month ago are slim, to say the least.
