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Posted On: 05/05/2017 3:09:45 PM
Post# of 2218
$CTIC Reverse Stock Splits to Sell: CTI BioPharma (CTIC)
When Cell Therapeutics, Inc. announced it was changing its name to CTI BioPharma Corp (NASDAQ:CTIC) back in 2014, investors were hoping for a change in identity as well. As it turns out, a name is just a name.
CTIC stock underwent a 10-to-1 reverse stock split in early January, but that’s just the tip of the iceberg. Prior to its name change, CTIC had a long history of reverse stock splits. Since going public in 1996, the latest reverse stock split is the company’s fifth in roughly 20 years. In total, the five splits have amounted to a 12,000-to-one dilution of the company’s IPO shares.
Perhaps it’s no surprise that the stock is down 63% in the past year and 92% in the past five years. The most troubling part of the CTIC stock story is the all-too-familiar pattern that has consistently plagued the stock throughout its 20-year history. In addition to the periodic reverse-splits, the company is constantly issuing more shares. This pattern has repeatedly diluted shareholder ownership. In the past five years alone, CTIC’s number of shares outstanding has ballooned six-fold.
Long-term investors should stay away from this pattern and certainly avoid CTIC stock.
When Cell Therapeutics, Inc. announced it was changing its name to CTI BioPharma Corp (NASDAQ:CTIC) back in 2014, investors were hoping for a change in identity as well. As it turns out, a name is just a name.
CTIC stock underwent a 10-to-1 reverse stock split in early January, but that’s just the tip of the iceberg. Prior to its name change, CTIC had a long history of reverse stock splits. Since going public in 1996, the latest reverse stock split is the company’s fifth in roughly 20 years. In total, the five splits have amounted to a 12,000-to-one dilution of the company’s IPO shares.
Perhaps it’s no surprise that the stock is down 63% in the past year and 92% in the past five years. The most troubling part of the CTIC stock story is the all-too-familiar pattern that has consistently plagued the stock throughout its 20-year history. In addition to the periodic reverse-splits, the company is constantly issuing more shares. This pattern has repeatedly diluted shareholder ownership. In the past five years alone, CTIC’s number of shares outstanding has ballooned six-fold.
Long-term investors should stay away from this pattern and certainly avoid CTIC stock.
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