yes on paper it is mechanical, in practice the preponderance of equities migrate to their pre-split price, regardless of which direction the split is. Eroding equities tend to continue to erode, exploding equities tend to continue to explode. There are exceptions, notably splits just prior to the dot-com bubble burst.
Reverse splits happen for reasons, and in the majority of cases the split does not remedy the underlying reasons, indeed the reverse split generally puts an exclamation mark on the underlying flaws.
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