Or not neccesarily? I recently had my Arotech Corp stock do a 14:1 reverese split. YES...14 to one! (Yikes)...
How bad of a sign is this? Can it be a good thing?
Thank you.....
2006-06-27 12:31:08 · 5 answers · asked by Gray Rock 3 in Business & Finance ➔ Investing
Not a good sign. I've seen bigger ratios. You still have to ask the fundamental questions "Is Arotech a good business? Will they make money. Are they competitive?"
2006-06-27 12:35:22 · answer #1 · answered by insuranceguytx 5 · 0⤊ 1⤋
It is usually a sign 'doom' has already arrived, i.e. the company was so badly administered that its share value went down drastically.
The more important question is whether the company's management has changed adequately to reverse the decline
2006-06-28 00:07:17 · answer #2 · answered by andrew f 3 · 0⤊ 0⤋
Normally and unfortunately, it means that the stock has more 'room' to drop after the reverse-split. As we speak, it just dropped another 12% today. You may want to consider other investments.
2006-06-27 13:10:53 · answer #3 · answered by r11567 4 · 0⤊ 0⤋
Prices typically continue to fall after a reverse split.
2006-06-27 12:37:41 · answer #4 · answered by Homer J. Simpson 6 · 0⤊ 0⤋
I agree with the the others. Usually, its a bad sign.
2006-06-27 13:30:02 · answer #5 · answered by jeff410 7 · 0⤊ 0⤋