Seeking Alpha
  • Daniellem31
    What is a reverse stock split? Good or Bad ? Is LVLT a buy?
    10/5/11
    Reply (9)
    • Mr. Massive: in my experience they are always bad... look at C for a good recent example
      10/5/11
    • Mr. Massive: AIG as well
      10/5/11
    • Mr. Massive: for penny stocks... look at MSTX, BCONQ...
      10/5/11
    • Mr. Massive: Reverse stock split is usually to increase share price. SO if stock is trading at 1 and they enact 1:5, for every 5 shares you get 1
      10/5/11
    • Mr. Massive: price is x5, shares outstanding/5
      10/5/11
    • avickrey: XPO is a recent reverse split. Not a buyback - it is administrative but you need to ask yourself why they are doing it in the 1st place.
      10/5/11
    • Daniellem31: Thanks, I am new at this..Mr. Massive - MSTX,BCONQ as examples of reverse split being bad or research and consider investing?
      10/5/11
    • avickrey: Danielle, usually reverse splits occur when share prices have been beaten down to low levels - a few more: RAS, VTSS. Look at the charts.
      10/5/11
    • Crunching Numbers: The reason is to get listed on the NYSE. There are minimum share price requirements to get listed.
      10/6/11