RE: RE: RE: AZDI got this off the Motley Fool. It is absolutely in the best interest of the company to try and avoid a reverse stock split. Even it works, it does still raise a flag. Probably better to generate sales and profit and start buying back stock in the long run.
I have tried to contact investor relations at AZD to see if they have any insight as to what Research Capital is up to. No response yet.
Bright spots
As it turns out, not all reverse splits have been failures. Take a look at these stocks, which successfully recovered from reverse splits:
Stock
Date of Reverse Split
Return Since Reverse Split
Palm (Nasdaq: PALM)
Oct. 15, 2002 (1-for-20)
633%
priceline.com (Nasdaq: PCLN)
June 16, 2003 (1-for-6)
347%
Laboratory Corporation of America (NYSE: LH)
May 4, 2000 (1-for-10)
330%
Corrections Corporation of America
May 18, 2001 (1-for-10)
483%
Brightpoint
June 27, 2002 (1-for-7)
1,788%
More broadly, however, recent research suggests that investing in a company that has just done a reverse split is a losing proposition. According to a 2006 paper that looked at 1,600 reverse-split stocks between 1962 and 2001, such stocks substantially underperformed the overall market during the three-year period following the reverse split -- by an average of 1.3 percentage points per month.
Focus on fundamentals
None of this should come as any great surprise. For a company's stock to trade low enough that it'll even consider a reverse split, it typically has to endure a terrible period of financial results. The split itself doesn't solve the operational problems a company faces, so companies that can't find a way to recover simply fail. The few that do find permanent solutions to their problems may have spectacular runs, but from an overall return perspective, they simply can't outweigh the vast majority of firms that fail.
Stocks that choose to undertake reverse splits brand themselves with a red flag. Given their reputation as wealth-killers, reverse splits simply drive away many investors from ever considering a given stock. If that aversion proves to be irrational -- that is, if investors abandon the stock for dead, even after its business prospects revive -- then it can be potentially quite lucrative for those who keep their eyes open to the opportunities it presents.
All other things being equal, though, companies that get themselves into a position where they need a reverse split have a lot against them from the start. Except in the most extraordinary cases, therefore, investors may be smarter to seek better investments elsewhere.
Source: Yahoo! Finance.
----------Original Message Posted 10/19/2010 12:37:58 PM----------
yes AZD is the seller and the mastrermind behind the TC-EV but I think Ford will lead AZD to success from advertising and the Ford logo..as if its their product not AZD....YOUR ALSO RIGHT...ITS AN EXPENSIVE TOY FOR ALL...BUT CURIOSETY among gas and maintnance savings WILL OVERPOWER THE MONEY ISSUE mainly to women that hate to maintain and pump!...gas that is!...lol ....JUST MY VIEW!