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Posted On: 04/12/2022 11:26:11 AM
Post# of 13831
Do your own due diligence...Reality - "Failure Rate"
https://www.researchgate.net/publication/2857...se%20split
Using a sample of 1206 reverse split stocks during the 1995-2011 period
"Of the 706 firms, that are unable to survive independently, about 20% are acquired by another organization while 80% get delisted for other reasons, usually due to an inability to meet listing requirements or bankruptcy"
"Also, we examine the post-reverse-split survival time for these firms and show that firms with poor operating and stock price performance, high leverage, and low post-split stock prices fail more quickly"
"We also show that in the period prior to delisting, larger size, better operating performance, and higher sales growth are associated with a higher likelihood of a completed acquisition rather than a delisting due to bankruptcy or failure to meet listing requirements"
Know what you don't own.
Do your own due diligence
imho
cheers
https://www.researchgate.net/publication/2857...se%20split
Using a sample of 1206 reverse split stocks during the 1995-2011 period
"Of the 706 firms, that are unable to survive independently, about 20% are acquired by another organization while 80% get delisted for other reasons, usually due to an inability to meet listing requirements or bankruptcy"
"Also, we examine the post-reverse-split survival time for these firms and show that firms with poor operating and stock price performance, high leverage, and low post-split stock prices fail more quickly"
"We also show that in the period prior to delisting, larger size, better operating performance, and higher sales growth are associated with a higher likelihood of a completed acquisition rather than a delisting due to bankruptcy or failure to meet listing requirements"
Know what you don't own.
Do your own due diligence
imho
cheers
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