The proxy also asks shareholders to approve a reverse stock split, which which would collapse five shares of stock into a single share. (Windstream stock was trading at $1.52 late Wednesday morning.) The total number of shares of common and preferred stock that Windstream could issue would also drop, from 375 million and 33 million to 75 million and 6.7 million respectively.
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As of today, WIN is listed below $5 at $4.86. Flashback to May, before the split, and that puts you less than a buck a share!
didn't WIN dump their dividends some time ago? and UNIT has picked up several large clients besides WIN recently....this article sounds like a robot author that has outdated info...The reverse split does bother me as it sounds like this is a temp means of looking good for some merger or sale
For your convenience:
High-Yield Stocks to Avoid: Uniti Group Inc (UNIT)
Uniti Group Inc (NASDAQ:UNIT) is yielding 14.4% — it’s a true high-yield stock with a number so high that it should be raising your eyebrows.
This is another REIT, but it happens to be involved in a hot industry. Normally, this would be a REIT that would be very interesting to look at as far as an investment. It handles mission-critical communications infrastructure and wireless infrastructure real estate.
There’s only one problem. 70% of its revenue comes from a company called Windstream Holdings Inc. (NASDAQ:WIN), because the REIT itself was actually spun off by Windstream. The whole idea of the spinoff was to help Windstream escape from a liquidity crisis, because it shucked off a huge amount of its debt onto UNIT.
7 Dividend Stocks That May Be Hurting Your Retirement
Well, Windstream is failing. The stock is down to $1.77-per-share, large debt maturities are coming due, and the cash flow is generating is not enough to meet these maturities. I don’t see this dividend as being sustainable
https://finance.yahoo.com/news/3-high-yield-stocks-avoid-174652452.html
Same thing happened with the last reverse split. The shares we have now are worth less than they were before the reverse split. It appears that we are going to do it again.
for those trying to understand the reverse split ... yes a five dollar bill is the same as five ones, for about one day. what happens immediately after that is the stock goes back to near what it's price was beforehand. you have 1/5th of the shares you once had and you've lost more money than you can calculate and will ever recover ... do the math on frontier's 15 to 1 reverse split for a case study
Get your resume ready. Layoffs are coming because you know Circus delivery isn’t going to install anything sold in less than 6 months.
If they were truly buying back stock as promised they wouldn’t need a reverse split. Stop printing stock for the 401k match. That should be illegal.
I guess the world class network, SDwan and Ucaas were a flop. Did you really believe anything management told you. Mr Chilli better find some new spices. Please replace those glasses .
A reverse split works like this. Let's say we have 10 million outstanding shares currently valued at $2/share. The board decided that they want to go through with this reverse split of 5 to 1. They will reduce the number of shares available down to 2 million but the value on a share is now $10.
It's really all smoke and mirrors when it comes down to it. If you ask me for $20 and I give you four $5 bills or twenty $1, it's still $20 in the end.
The big takeaway for the board and wall street is to not go under a $1/share and get delisted from the NASDAQ. Once they get delisted it's game over and they will be trading on the pink sheets. They are basically trying to buy time to sell off assets or to get more cash in the bank selling SDWAN and UCaaS.
Unfortunately there is not a lot of value in telecom companies right now.
Could someone explain in layman’s terms what the reverse split actually will do?
Already went thru a reverse split. This is the next and only gives the company a higher platform to dive back down from. Criminal
get ready to lose all you have invested in this trash company ...
https://www.fool.com/investing/general/2015/04/16/do-reverse-splits-ever-work.aspx
Can you smell what the Rock is cooking!
A good start; fire everyone on management and start over. You can't do worse. Regional/ state presidents are worthless. Have the knowledge base of a donkey.
That's just putting lipstick on a pig. Sure the price will be up, but you will own 1/5 as much. A pig is a pig no matter what you do to it.