RE:Stock reversal ?LOL...a reverse split/share consolidation is exactly what it sounds like...the company would literally be "consolidating" their shares/shrinking the number of shares outstanding.
For example...ATH has approx 530m shares outstanding...a 1 for 5 would bring shares outstanding to 106m...price per share would become $3.65 (.73 x 5)
That being said, reverse splits are usually done after (1) massive share dilution, such as after a debt restructuring - debt being swapped for equity by creditors (2) kind of a last ditch effort to maintain compliance with stock exchange listing requirements, if the exchange requires a mimumum price per share
Neither of these scenarios apply, as of yet. The tsx's listing requirments are pretty lax in terms of minimum share prices vs. NYSE. Baytex (BTE) recently had the choice of doing a reverse split to maintain compliance for their NYSE listing. They declined and chose to voluntarily delist instead.
On the other hand, OBE did a 1 for 7 reverse split a couple years back to try to maintain NYSE compliance. However, even with the reverse split, the stock price kept tanking, and they were eventually delisted from NYSE anyways.
Weldon wrote: I haven't read and or seen anything about it. Why should ATH have a stock reversal at this point; when in fact...the stock hasn't even reached its highs from previous years ( see below ). If anything...the value of ATH should increase steadily as the price of Oil is climbing up.
| ATH | Price |
| Sunday, May 01, 2011 | $ 17.75 |
| Friday, July 01, 2011 | $ 15.50 |
| Saturday, September 01, 2012 | $ 13.18 |
| Friday, August 01, 2014 | $ 7.92 |
| Thursday, March 01, 2018 | $ 1.75 |