jerry parker

Ciena's Reverse Stock Split: Appealing to Short-Sellers?

the key to stock split is whether the company is growing revenues and if they're EPS positive. if so, it'll work. if it's still losing money, then the company will lose more per share. if they're making money, then instead of $.01/share, they could make $.07/share...that's much more meaningful from institutional investor standpoint. although author claims it's just accounting, there's reasons why people want to use dollar bills and qtrs and avoid using pennies. after all, it's just accounting so what'e the big deal? the big deal is that with over 8,000 stocks to choose from, investors have plenty of options - they'd prefer money making stocks that are trading above $10-20, all things being equal, than sub-$5 that's barely break even. just my $.02.