Are there any Reverse Stock Splits that have been successfull and gone up in price?
2007-02-07 09:40:29 · 5 answers · asked by westphalia1 2 in Business & Finance ➔ Investing
Many do so on a short term basis, but be prepared to move your money quick and get out of them when you can. I was in ACSJ which became KROH (both investment holdings companies) with a company name change, management change, and reverse stock split all in one. The short term return was quite good once KROH put out a few press releases about what they were doing and what they were hoping to accomplish. The stock went from about $0.12 after the reverse split down to about $0.04 up to about $0.45 before it fell head over heels and now trades at $0.025 and hasn't really done much in a long time. I'd bought 6800 shares at between 6 and 8 cents a share and sold out at 15 cents and was kicking myself for it, but I knew I'd made the right decision when nobody was buying anymore at $0.45.
Right now, I have money in ABZA (a retail diamond distributor) which recently underwent a reverse stock split of 40 for 1 which I wasn't too thrilled over since I didn't believe the company's performance warranted a buy-in price increase after the reverse split was complete. Apparently, I'm not the only one to think so since the stock price has gone down about a dollar a share after the reverse split was completed. I still think the stock is undervalued, but the company hasn't actually proven that to be true with its sales performance yet. I'm looking at this as a very long hold (probably a year or two at least) at the moment.
Many reverse splits seem to go up in price right away only to tank almost as fast. But I agree with the earlier person who said they are few and far between.
2007-02-07 16:49:25 · answer #1 · answered by G A 5 · 0⤊ 0⤋
They are few and far between. Usually a rverse split is done because the company sold all the shares they can and want more money. Almost always this is done by scam companies on the pink sheets.
The only way this can be good for share holders is if the company is profitable and non-dilutive.
2007-02-07 09:45:40 · answer #2 · answered by speedgeek 2 · 0⤊ 0⤋
You are short fewer shares.
2016-05-24 04:17:54 · answer #3 · answered by Anonymous · 0⤊ 0⤋
challenging matter. try searching into google and yahoo. that may help!
2014-12-08 14:43:31 · answer #4 · answered by ? 3 · 0⤊ 0⤋
Nortel..................... NT
2007-02-07 11:27:00 · answer #5 · answered by Daniel S 1 · 0⤊ 0⤋