Post by
cheetio on Oct 04, 2015 1:32pm
reedit
reverse stock split consolidates the firm's shares into fewer shares. Companies with the worst prospects for the future generally need to consolidate the most.
Comment by
cheetio on Oct 04, 2015 1:34pm
If the reverse stock split is a negative signal, then managers seem to be trying to counter the negative signal with their press releases
Comment by
cheetio on Oct 04, 2015 1:35pm
managers tend to put a positive face on the reverse stock split announcement. They are improving liquidity, appealing to institutional investors, making the price more attractive, or giving some other positive reason
Comment by
cowdoc447 on Oct 04, 2015 7:03pm
In an honest company reverse splits are a wash and may even be a benefit. We will wait and see.
Comment by
cutthewabs on Oct 04, 2015 8:03pm
This post has been removed in accordance with Community Policy
Comment by
givmeabrake on Oct 04, 2015 9:44pm
Agreed. RS is for Nasdaq listing and only viable after favourable news from FDA/Adcom, hopefully by end of Nov . RS under those circumstances will be very positive. BTW Wabs, A link please or reference to Adam Feurenstein's review. NOT cool making such a bold statemnt witount proper validation.
Comment by
cheetio on Oct 05, 2015 2:14am
Reverse splits can squeeze out minority shareholders if the managers desire to take a public company private. ...
Comment by
cheetio on Oct 05, 2015 2:15am
Reverse stock splits could be used to reduce the number of shareholders so that the corporation can be privatized and avoid full disclosure
Comment by
cheetio on Oct 05, 2015 2:15am
When a company declares bankruptcy, creditors could dictate the split as a part of the reorganization