So what happens when the stock plummets drastically and/or falls below 1? Would MDR do a reverse split?
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The problem was cash flow. The problem now is that they are selling the best assets, the only assets anyone will buy, leaving the unsalable assets behind. All the cash will go toward paying suppliers and banks. Leaving a big bucket of risky, low-performing businesses run by employees who are here because they couldn't get another job.
They are selling some assets worth 2.5 BIllion dollars,we shall see what happens then.
the problem is cash flow.
Direct answer....yes.
MDR has approx 181M outstanding shares.
NYSE has a few requirements to be listed on the exchange; stock price above $4 & at least 200,000 outstanding shares.
So, theoretically they can reverse split 905 more times. That wouldn’t impact the VALUE of your total shares. It would dilute the number of shares you have.
9/20: 100 shares @ $2.01 (total value: $201)
2:1 Reverse split on 9/23
9/24 : 50 shares @ $4.02 (total value: $201)
This move would be a defense move if the NYSE threatens to delist the stock from the exchange...it will not boost shareholder wealth
IDK. I sold all of my stock at a huge loss. I dont see a dividend anytime soon and they probably will need to liquidate a lot of capital to pay legal bills.
Eventually to avoid being delisted.