Only for 1 reason; it would be easier to make transactions and it will be less volatile. - With 2,5 B shares issued, it will never be back in the 10$ or 20$ range.
- With a value higher than 3$, margin financing will be 70% intead of 50%.
- Options transactions are very expensives with options valued only at 10, 20 or 40 cents. The fares for an option transaction is 2,5 cents (1,25 at buy + 1,25 for the sell) or 12% for a 20 cents option and 8% for a 30 cents option. A clear limiting fare. With a 15$ stock, the fare is only a fraction of this costs; for example, 2,5 cents on a 2$ option is only a 1,25% fee.
But most important is the volatility. With its 1,50$ value, the stock move easily by 5 cents, 10 cents or more intraday. We have the perception that a 3 or 5 cents is not a big difference. But it is another story with a difference of 30 cents or 50 cents. Here are the intraday moves of Bombardier in the last month (21 trading days): 8 cents, 7,9,5,6,10,18,19,12,5,8,8,6,11,5,5,5,2,6,6,3 cents.
14 days (66%) at 6 cents and more and 5 days over 10 cents; with 2 days at 18 and 19 cents.
A 20$ stock never have a so big volatility. It would means intradays moves of 1, 2 $ most of trading days. I never see this in a regular basis.
It's a move from a serious management and Bombardier will be less percieved a a penny stock.