GE Screws over Investors AgainGE - We have 8 billion shares. That is too many! Lets do a 8:1 reverse split and increase our valuation that way! So our valuation is at $96 and we can feel good that we have increased the share price to where it should be.
Investor - How about you properly manage the company, cut bloated salaries, invest in emerging tech and increase the valuation that way.
I have stood by this company for a long time and was loking forward to an awesome return at $20 a share until this happened. Instead, I get screwed by a poor corporate decision to increase the valuation artificially with a reverse split. This has resulted in a drop of $2 a share over two days.
Granted they are not out of the woods yet and have work to do. It is the underlying belief that companies only do a reverse split when everything is not going to be good.