Score any reverse split setup in five questions. Surface the red flags in seconds — dilution, low ratios, repeat-splitter history. This is the public-lite version. The full version inside Tier 1 uses 20+ inputs.
Source: 8-K Item 5.03. Higher ratios produce tighter post-split float — and stronger squeeze setups. Very low ratios barely move the supply.
Source: 8-K and DEF 14A language. Compliance with the $1 minimum price rule is the cleanest reason — the company is forced to do it to stay listed. 'Strategic' language often masks something else.
Source: search EDGAR for recent S-1, S-3, 424B, or ATM-program filings. Each one represents shares queued to enter the market. This is the single biggest reason setups fail.
Source: 8-K Item 5.03 'effective date.' The shorter the window, the less time for shorts to position and for new share registrations to file.
Source: EDGAR full-text search for prior 8-K Item 5.03 filings on the same ticker. Repeat reverse splitters are usually in a chronic dilution cycle — the pattern repeats because the underlying business doesn't.
Passes the structural filter. Move into the full Tier 1 framework: float math, pattern ID, position sizing. This score alone is not a buy signal — it's a permission to keep researching.
Mixed signals. Some structural strength, some warning flags. Maybe tradeable after a full review, but the setup is fragile. Better setups usually come along — be patient.
Fails the basic filter. The structural setup is broken. Walking away costs nothing. Forcing this one usually costs everything.