Making free money via Reverse Stock Splits (Guide)

Xyrax

Superstar
Joined
Sep 10, 2015
Messages
3,485
Reputation
1,895
Daps
20,497
I wanted to make this thread because its something I have been doing for a while; but recently it became easier to do because someone created a Twitter account to reveal and track these opportunities which means now everyone can do is pretty easily without having to research them on your own.

Long story short: You create free brokerage accounts with brokers like Robinhood, Webull, Fidelity, Schwab etc etc: The you buy low cost stocks set for reverse splits for pennies: Then sell them days/weeks later for a profit. Period. No games, no risk no bullshyt catches.

They are typically for small amounts: $5-500 in range for the most part. The bigger ones are rare; but this costs next to nothing to execute. You just put $5 on a brokerage account; Buy these when told, sell them when they execute and rise in value, and now your account went from $5 to $75.... And you keep going. Heres an example from my Fidelity account:

IRGVu28.png


Here I bought Tengasco as it prepared to rename to RILEY and executed a reverse stock split. I paid $2.56 for one share. Then later:

4YIUzhs.png


20 or so days later I sell the reverse split stock I bought for $2.56 under its new name for $23.42.

Another example is me buying SINGLEPOINT (I should have just bought 1 share but I bought 100 praying for the conversion) for $5.20

xKOLzcL.png


Then selling it later for $126

aAKDLRR.png


The point is that these are profitable regardless of what the market is doing because the companies are intentionally raising their share price to remain listed on the market. So they consolidate 10 shares into 1 share to raise the stock price. But those who only own 1 wait until after the conversion and suddenly your 1 stock gets converted UP to the price of 10 shares... Free money.

Finally; this scales. I listed Fidelity but you can repeat this on as many brokerages as you can find. So $23 in profit on Fidelity is really $230 overall profit if you do it on:

Fidelity
Schwab
Robinhood
WeBull
Firstrade
Tradestation
SoFi
Vanguard
Ally
Chase


And there's more. You can scale these profits to high multiples depending on how many free brokerage accounts you are willing to open and play the game on. All legal, no bullshyt.

A single account will make you 1k-2k a year, and you can scale that across as many brokerages as you can find (all the ones I listed are confirmed to work with this.)

And you can use this Twitter account below to be told which stocks to buy single shares of, and when.

https://twitter.com/reversesplitarb?lang=en



The account holder announces which splits are up; When you have to buy them by, and announces the Brokerages that are compatible with the buy. Like so:


I'm buying 1 share of $NSPR before market close on Apr 26, 2021. 1:15 ratio reverse split rounding up fractional shares overnight. For (potential, need to confirm) participating brokers and sources

Ey9jWhDXAAIB0y5




I know that's a long ass post but I see Coli cats posting that they want to invest 1k etc all the time; So if that's how people are getting started, I figured this is a quick way to put in a little work and earn yourself 6k+ or more a year for investments if you really use a bunch of brokers. Just remember, these are taxable gains (unless you are making the trades inside of an ROTH IRA) so save 30% for Uncle Sam brehs.
 

Originalman

Veteran
Supporter
Joined
May 15, 2014
Messages
44,584
Reputation
11,234
Daps
191,056
Good info OP I will try this one. I do stock splits but never reverse stock splits.

Question I have is what is the benefit of buying one share on multiple brokerage accounts? Instead of multiple shares on 1 brokerage account?
 

Macallik86

Superstar
Supporter
Joined
Dec 4, 2016
Messages
4,457
Reputation
870
Daps
13,845
The point is that these are profitable regardless of what the market is doing because the companies are intentionally raising their share price to remain listed on the market. So they consolidate 10 shares into 1 share to raise the stock price. But those who only own 1 wait until after the conversion and suddenly your 1 stock gets converted UP to the price of 10 shares... Free money.

Finally; this scales. I listed Fidelity but you can repeat this on as many brokerages as you can find. So $23 in profit on Fidelity is really $230 overall profit if you do it on:

Fidelity
Schwab
Robinhood
WeBull
Firstrade
Tradestation
SoFi
Vanguard
Ally
Chase

I know that's a long ass post but I see Coli cats posting that they want to invest 1k etc all the time; So if that's how people are getting started, I figured this is a quick way to put in a little work and earn yourself 6k+ or more a year for investments if you really use a bunch of brokers. Just remember, these are taxable gains (unless you are making the trades inside of an ROTH IRA) so save 30% for Uncle Sam brehs.

:whoo:
Decent arbitrage here
 

Xyrax

Superstar
Joined
Sep 10, 2015
Messages
3,485
Reputation
1,895
Daps
20,497
Good info OP I will try this one. I do stock splits but never reverse stock splits.

Question I have is what is the benefit of buying one share on multiple brokerage accounts? Instead of multiple shares on 1 brokerage account?

Because the way the reverse splits work, they have a sort of safety mechanism to keep people from abusing them easily. It will restrict you to one round up per brokerage account. So in order to use the same one twice you need to use 2 brokerage accounts, or more.

Ill usually buy 1 share on Robinhood, Fidelity, etc etc until I get tired of logging in to them. Then just check the Twitter or one of the brokerage accounts daily to see when the stock levels up.

Youll know its time to sell it when you look and the value on it is up 5200% or some weird ass huge number. But the Twitter account also announces when its time to sell which ones.

:whoo:
Decent arbitrage here

Yeah definitely, and that's a small one. Some of them do bigger 1:150 reverse splits and larger. shyt is wild. Thats why they limit it to 1 per broker, or else people would run wild on that huge ratio.
 

Originalman

Veteran
Supporter
Joined
May 15, 2014
Messages
44,584
Reputation
11,234
Daps
191,056
Because the way the reverse splits work, they have a sort of safety mechanism to keep people from abusing them easily. It will restrict you to one round up per brokerage account. So in order to use the same one twice you need to use 2 brokerage accounts, or more.

Ill usually buy 1 share on Robinhood, Fidelity, etc etc until I get tired of logging in to them. Then just check the Twitter or one of the brokerage accounts daily to see when the stock levels up.

Youll know its time to sell it when you look and the value on it is up 5200% or some weird ass huge number. But the Twitter account also announces when its time to sell which ones.



Yeah definitely, and that's a small one. Some of them do bigger 1:150 reverse splits and larger. shyt is wild. Thats why they limit it to 1 per broker, or else people would run wild on that huge ratio.

Ok understood breh. After I made my post to you I started to look online and figured out the reason for it.

Appreciate all the info and I will try it this week.
 

Xyrax

Superstar
Joined
Sep 10, 2015
Messages
3,485
Reputation
1,895
Daps
20,497
This works :whoo:

I bought a share of NSPR on Monday with Robinhood for around .50. The stock then disappeared after that trading day until I checked it yesterday and it had reappeared in my account and it was worth around 6.50. I immediately sold it.

Thanks for putting us on to this @Xyrax :salute:


:salute:
 

Originalman

Veteran
Supporter
Joined
May 15, 2014
Messages
44,584
Reputation
11,234
Daps
191,056
This works :whoo:

I bought a share of NSPR on Monday with Robinhood for around .50. The stock then disappeared after that trading day until I checked it yesterday and it had reappeared in my account and it was worth around 6.50. I immediately sold it.

Thanks for putting us on to this @Xyrax :salute:

Yep it really works on robinhood cause on their you really don't own the stocks. So the conversion is fast.

Just have to follow old dude tweet updates.
 

TRUEST

Superstar
Joined
May 17, 2012
Messages
10,175
Reputation
1,715
Daps
39,617
Reppin
NULL
I gotta get into this. If this works, it can’t be legal and I feel it’s only a matter of time before they restrict it. Until then tho, it’s worth a try. Thanks OP!
 
Joined
May 10, 2012
Messages
17,430
Reputation
5,700
Daps
39,686
I gotta get into this. If this works, it can’t be legal and I feel it’s only a matter of time before they restrict it. Until then tho, it’s worth a try. Thanks OP!


It's legal and the brokerages allow it to happen. If too many people start making money off of this though, it probably will get restricted.
 
Top