If you take a look at the chart of QED Connect Inc (PINK:QEDN), you will see a straight line at around $0.50. This is the former .0001 value of the company’s shares before the stock split.
The people who do not remember the moment of the stock split may not be able to perceive how tragic it is to hold long positions in QEDN stock. For, not only did former shareholders of the company get their number of shares decreased by the reverse split, but also the share value continued to decline, which was impossible at $0.0001.
What happened after the stock split? QEDN stock was automatically hauled to $0.5 per share in April. Five months later, QEDN stock is being sold at $0.05 and it is not certain whether this price will hold for long.
The relentless decline continues, regardless of the constant flow of press releases issued by the company. That said, it is more than obvious that QEDN shares are so hot that they will burn anyone who holds them for too long.
It must be noted that from a technical point of view, at present, there is a positive divergence between the climbing MACD and the downtrend of the stock. But if anything comes out of this configuration, it will most likely not last for too long.
QEDN is just another example why reverse stock splits disturb the good sleep of many penny stock investors. One should never take it for granted that a stock cannot depreciate even if it has reached the bottom at .0001.
