What happened On Monday, Guardion Health Sciences (NASDAQ: GHSI) put into effect a reverse stock split. Shares of the ocular health foods and devices specialist promptly sank on the news, ending the day nearly 12% lower. So what Since mid-2019, shortly after Guardion's debut on the stock exchange, its shares have consistently traded below the Nasdaq's effective $1 per share minimum. The exchange gave the company several chances to rectify this, most recently setting a March 15 deadline. The 1-for-6 reverse stock split was the company's fix of choice. Image source: Getty Images. It's important to remember that with either standard or reverse stock splits, the total value of an investor's holdings does not change; only the share count is modified. In Guardion's case, it's mission accomplished: Even with the price decline in the wake of the split, the shares now trade well over the $1 threshold at $2.67 apiece. Now what Reverse stock splits are indicative of companies that are struggling. Since launching its IPO in April 2019, Guardion has consistently landed deeply in the red due in large part to persistently high operating expenses. In its most recently reported quarter, for example, its net loss topped $2.1 billion, on only $253,188 in revenue. Guardion is unique in the healthcare space and has reported some good news. A recent clinical trial indicated that its Lumega-Z produced "superior" results in improving vision, but the company is still deep underwater financially. Investors should approach with extreme caution, if at all. 10 stocks we like better than Guardion Health Sciences, Inc.When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Guardion Health Sciences, Inc. wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of February 24, 2021 Eric Volkman has no position in any of the stocks mentioned. The Motley Fool recommends Nasdaq. The Motley Fool has a disclosure policy.Source