Post by
NoNameAtAll on Mar 25, 2022 6:00pm
Share consolidation is not a certainty
I noticed in reading the press release that the resolution will give the board authority to effect the share consolidation.
I'm wondering if this will have an effect on the naked shorting that has been an issue for this stock. If the resolution passes, until declared by the board, the board will have authority to effect the consolidation at any time for up to a year. So, nobody will know when or if it will happen until announced by the board.
This is not the first time this has happened. Immediately after the first time BBD share price went below $1 a shareholders resolution was passed allowing the board to trigger a consolidation at any point in the next year. The board did not trigger it, but the price of the shares went back up considerably. That was when the shares took a run up to over $5 and the company was much more of a basket case then compared to now.
When I think about the shorting rules, as I know the, the big guys need to have a legitimate expectation that they can borrow shares in order to cover their short. Well, if there is a consolidation, everyone will need to pass in their shares in exchange for the consolidated shares. I think that will mean all shorts will need to make sure their shorts are covered through the consolidation.
Perhaps that caused more cautious actions the last time BBD did this and perhaps it will happen again. For those that have been around for a few years know that while BBD shareholders approved the consolidation last time, they didn't pull the trigger and do it. I wonder if that will happen again this time.
Would like to know if anyone else has given this any thought.
Comment by
flamingogold on Mar 25, 2022 6:24pm
I wonder if this is why we didn't fully recover along with the market since the last selloff. Despite insider trading rules, I believe it still occurs and some may have known an announcement was in the works. Anything is possible. The market does weird things and I have seen some stocks pop after an announcement like this. After all it is not official yet and may never even occur.
Comment by
johnney on Mar 25, 2022 6:44pm
I am pretty sure that this time they will consolidate the shares!!They didn't do it when it went down the first time at $0.72, 2015,or 2016! They will get rid much of the shareholders!
Comment by
satchmo6 on Mar 25, 2022 8:38pm
30 for 1 would be insane , but not impossible---- with over 2 billion shares---the insiders have allready made the switch
Comment by
johnney on Mar 25, 2022 7:19pm
Don't worry, they will do it!!