Yin Yang Tuesday, 02/16/16 06:49:09 PMRe: Touc
Post# of 9903
Posted On: 02/16/2016 8:40:06 PM
Yin Yang Tuesday, 02/16/16 06:49:09 PMRe: ToucanYoucan post# 12560Post # of 12616
To elaborate what ToucanYoucan stated about the reverse stock split of bgl. The reason for bgl to do a reverse stock split which Are Normally Bad News is because companies normally execute reverse share splits in order to retain their listing on the Canadian stock exchange. They receive a notice from the exchange that if their stock remains at that level they risk being delisted. And it keeps their stockprices out of the cellar. A large percentage of companies that execute reverse splits will continue trading lower after the split. Keep this in mind - a reverse stock split is normally a very big red flag. Since it's done for purely cosmetic reasons and doesn't change a company's finances, themarket knows it and the company gets penalized. Most companies end up seeing their stock prices continue to slide. Reverse splits have a negative stigma. A lot of investors don't have a lot of confidence in a company that gets its stock up through a reverse split. They think the company is playing games and trying to get credit for something they don't deserve!
To elaborate what ToucanYoucan stated about the reverse stock split of bgl. The reason for bgl to do a reverse stock split which Are Normally Bad News is because companies normally execute reverse share splits in order to retain their listing on the Canadian stock exchange. They receive a notice from the exchange that if their stock remains at that level they risk being delisted. And it keeps their stockprices out of the cellar. A large percentage of companies that execute reverse splits will continue trading lower after the split. Keep this in mind - a reverse stock split is normally a very big red flag. Since it's done for purely cosmetic reasons and doesn't change a company's finances, themarket knows it and the company gets penalized. Most companies end up seeing their stock prices continue to slide. Reverse splits have a negative stigma. A lot of investors don't have a lot of confidence in a company that gets its stock up through a reverse split. They think the company is playing games and trying to get credit for something they don't deserve!
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