Although reverse splits could have a negative impact on shareholders, they sometimes get extremely popular and soar. This might be the case with Blue Star Foods Corp. (NASDAQ: BSFC) which is effecting a 1 for 20 reverse split on June 21. Following the reverse split, BSFC will have an extremely low float that many investors are eyeing closely. With the stock gaining investors’ attention due to its reverse split, BSFC stock could be one to watch this week in case it has a reverse split run.
BSFC Stock News
As things stand, BSFC stock intends to execute a 1 for 20 reverse split on June 21 to regain compliance with the NASDAQ’s minimum bid price requirement as the company has been non-compliant since last November. Therefore it was critical for BSFC to effect the reverse split to maintain its NASDAQ listing.
However, the reverse split could see the stock run this week as many investors are bullish on BSFC’s share structure post the split since its float would only be 1.6 million. As a micro float stock, BSFC could run quicker on news, and with the growing momentum the stock is witnessing ahead of its reverse split, the stock could be poised to soar this week.
BSFC Stock Financials
According to its Q1 2023 report, BSFC’s assets slightly decreased QoQ from $8.67 million to $8 million, however, its cash balance drastically increased from $9 thousand to $187 thousand. Additionally, its total liabilities decreased QoQ from $9.92 million to $7.56 million.
In terms of revenues, BSFC experienced a notable decrease YoY from $5.3 million to $1.8 million, while expenses slightly decreased from $1.33 million to $1.23 million. That said, its net loss increased from $1 million to $1.8 million.
Media Sentiment
@MayaTrades is eyeing BSFC ahead of the reverse split.
@BIGtradinggroup is excited about BSFC’s potential to run after the reverse split.
Technical Analysis
BSFC stock is in a bearish trend and is trading in a downward channel. Looking at the indicators, the stock is trading below the 200, 50, and 21 MAs which are bearish indications. Meanwhile, the RSI is neutral at 40 and the MACD is bearish. Given that the stock is trading near support, BSFC could soar this week given the interest it is receiving due to its reverse split.
As for the fundamentals, BSFC is gaining momentum thanks to its reverse split that would leave it with a 1.6 million float. Thanks to this growing momentum, BSFC could be poised to soar this week on high volume which may make the current PPS a good entry ahead of the expected reverse split run.
BSFC Stock Forecast
Due to its reverse split, BSFC stock is gaining momentum on social media as an increasing number of traders are anticipating a potential reverse split run. Given the popularity of reverse split plays, BSFC could witness a run thanks to investors’ enthusiasm for such a run. However, the positive thing regarding the reverse split is that it would leave BSFC with a micro float of 1.6 million which would allow the stock to run quicker on news. For these reasons, BSFC stock could be a profitable reverse split play to buy this week.
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