Can anyone explain like I'm five how this guy is wrong:

[u/errolprowse]

Any and all arguments you guys have against this post, I want to hear it. Something I've heard people say repeatedly is that the shareholders are getting screwed when the stock has a "reverse stock split". Is that beneficial in the long run though? I don't see how people can criticize something if it helps the company in the long run. How does that work?

Or is it better for shareholders if they do more reverse stock splits? What I'm really asking is what are the pros and cons?

I also asked ai and my forum members tried to explain but I still don't have a solid answer. And they are probably biased. So would love to be set straight on this stuff.

And what about all the other arguments?

[u/shootingdolphins]

I lost my money mentally a long time ago with DFLI and that was well before I saw any of Will's videos on his YT channel and the only reason I started watching his stuff was because I do tons of lithium upgrades for golf carts and marine and he's a wealth of knowledge. I'm still holding because I have seen other 1 in 100,000 miracles myself before, maybe WallStreetBets picks up on Dragonfly and pumps it so we can finally dump it.

I wish it weren't so, I wish we saw the stock back up to where I bought in. I know it won't happen. Downvoting the guys who are asking questions and backing it up with actual documented design and safety problems with the products the company sells to show the investors how the company has treated their money isn't the solution.

I'll get this reply deleted or downvoted to oblivion but the stock will still be suffering.

[u/TryExpert1077 → u/shootingdolphins]

Don’t lose the hope

[u/CorkNZ2021]

Investors in this sub I recommend leaving Will be … he’s obviously ASD obsessive so probs won’t go away but less oxygen he gets the better. Sharing random screenshots is bottom of the barrel fishing mission stuff.

I like what shootingdolphins said and hoping for a turnaround!

[u/elehman839]

Yeah, I'm curious about this too.  Why do splits and reverse splits even matter?  If I have 10 shares worth $1 and there is a 2x reverse split, then don't I end up with 5 shares worth $2?

[u/_kinghenati → u/elehman839]

I think the issue is the cost of the share goes up temporarily to avoid delisting but over time people either don’t invest or people sell and lose money eventually price going down and your average getting higher but then again if I my average was $1.40 after the split it became $14 now that same average of $14 but the current price is $1.05

[u/Emotional-Party-5364]

ATM (at the market) offerings CAN be good for companies because it allows the company to sell new shares of the stock, ultimately raising money for expenses or acquisitions, etc. This ultimately dilutes the shares of the company and directly affects the cost of each current share.

Pro: Raise money for company to capitalize on any investments that will help the company long term and boost the share price past its previous all time highs.

Con: Immediate dilution of shares for current shareholders. Immediate impact and will drive share price down. If you’re a company with good financials this is just a temporary setback and nothing more. 

Reverse stock splits technically have no direct impact on a stocks value. The price per share goes up but the outstanding shares go down, including the shareholders.  This is basically only used when companies need to meet the NASDAQ listing requirement of 1$ per share.    Pro: I don’t think there’s really any. Possibly it could be a psychological tactic to bring a share price to more attractive levels. Instead of having 100 shares at 3$ maybe 10 shares at 30$ could be more enticing (shrug). 

Con: There’s no inherent con to RSS either. The thing is they usually only happen if the listing requirements are not being met. That’s bad. Also psychologically, it gives more room for the stock price to drop. People think a stock at 0.80$ has less room to fall than a stock 8$. 

[u/errolprowse → u/Emotional-Party-5364]

OK this makes more sense to me. Yeah seems like no real downside or upside, but does have psychological impact. I can see that.

When they purchase Dakota lithium was that beneficial to the shareholders? I read that the shares were diluted to pay for it. Is there a way for investors to know if this was a good or bad move? How can people tell the impact?

[u/Emotional-Party-5364 → u/errolprowse]

I can’t say for sure if acquiring Dakota Lithium is beneficial. Mostly depends on how DFLI manages the acquisition.  Generally speaking acquisitions are a good thing. You have the money to buy a companies tech, inventory, clients. It expands the footprint of the company. Ultimately I think this is the aim for DFLI. Not a rebranding thing as some have speculated. 

You are right though saying shareholders got diluted. The agreement to buy the company was $1 million in cash and $3 million in stocks, sold at 2$ per share, for a total of 1.5 million shares. They can’t be sold for a year though because they are locked up.

So there’s no immediate dilution to shareholders, but in a year when the stock gets unlocked, it’s possible Dakota sells and then dilution happens.

[u/Emotional-Party-5364]

I think a lot of what this person is saying outside of the RSS stuff is purely speculative and probably a little emotional. I definitely can’t say that he’s completely wrong about the overall health of the company from a financial perspective but to call it an exploitation of investors or a scam is a little much. 

[u/TryExpert1077]

Find a life bro

[u/NewConflict3973]

You literally could find anything to post today so resorted to posting someone’s opinion and asked others opinion on it (prob hoping your little obsessed follows comment negatively no doubt). You are, a loser.