So they take our shares away from us, for every 8 we have, we get 1. They then get the stock up to $100.00 or $120.00 a share. Are they doing this bec they need more wiggle room to have the stock go back down towards zero?? Right now it’s $12.57 a share. Doesn’t this whole move just give them more money to move around on the books bec u can make anything look great on the books. Smoke and mirrors game…… His is this going to help me buy take away the compounded number of share factor I had???
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@1wkx+1bTUybms Good call.....NOT!!!
Honest question OP - why do you hold this stock?
It’s all about reducing the amount of cash that has to be paid as a dividend. Plus, it helps protect the stock from risk of mutual funds and some indexes having to sell if it drops back to the single digits.
That's the only way they can get the stock up is to rv split it. I'm surprised it's as high as it is now. Does that still count for Culps big bonus if he got it over $30?
@nmk you go ahead and do that buddy. I'm gonna enjoy betting against you.
GE is going back to single digits
For those hoping for a boost to stonk price - post split that means goin from 96/share to 60/share in a blink of an eye.
Be careful you don't get whiplash...
Long term? Its going to single digits, even accounting for reverse split.
It you’re concerned about the stock price, sell everything you have, more for the rest of us.
smoke and mirrors.
if you take 5 twenty dollar bills to the bank and exchange that for 1 100 dollar bill, are you more wealthy?
No.
Its a gimmick.
Its a gimmick to get attention of mutual funds, and to sneaky raise dividend per share.
Rite now, dividend is $0.01 per share.
With reverse split, dividend will be $0.08.
Also stock price will look attractive to people who dont watch news and suddenly looks great.
Earnings per share will also go up. Because there are fewer shares after a reverse stock split but the earnings remain unchanged, the earnings per share increase.
Its a financialized desperate move a dying company makes to window dress cause all other prospects look grim.
Most companies that do a reverse stock split end up declining by at least 15% 3 months later.
"Just as stock splits are a sign that a firm is thriving, reverse stock splits are an admission of a struggling firm — a huge red flag," said Robert Johnson, a chartered financial analyst and CEO at Economic Index Associates, in an email interview.
You'd be better cashing out and putting your money under your mattress.
The good news is credit default risk has declined over the past year.
The bad news is that trend has recently changed direction.
https://www.assetmacro.com/united-states/credit-default-swaps-cds/ge-capital-credit-default-swaps-ge-5y-cds/