The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
For those not in the know here are the details of a reverse split. Written by A MAVERICK, apt. As said earlier can’t see the point, this share been as low as 4p my entry point. So we have a bit of time yet, plus wouldn’t doing a reverse split take cash from the FOG coffers, that could be used better elsewhere. As you can see no expert but nothing here that makes want to move that way.
Why would a company perform a reverse stock split? By J.B. Maverick | Updated May 30, 2018 — 11:36 PM EDT
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A company performs a reverse stock split to boost its stock price by decreasing the number of shares outstanding, which typically leads to an increase in the price per share.
How a Reverse Split Works
When a company does a reverse split, it cancels its current outstanding stock and distributes new shares to its shareholders in proportion to how many shares they owned before the reverse split. For example, in a one-for-10 reverse split, shareholders would receive 1 share of the company's new stock for every 10 shares that they owned. If a shareholder owned 1,000 shares before the split, the shareholder would own 100 shares after the reverse stock split.
Why Would A Company Perform A Reverse Split
A reverse split would most likely be performed to prevent a company's stock from being delisted from an exchange. If a stock price falls below $1, the stock is at risk of being delisted from stock exchanges that have minimum share price rules. Reverse stock splits can increase share prices to avoid delisting, and being listed on a major exchange is important for attracting equity investors.
A split might also be done to boost the company's image if the stock has fallen dramatically. If the stock is trading in the single digits, it'll likely be seen as a risky investment particularly if the price is near $1 or considered a penny stock by investors. A reverse split might be engineered by a company to protect it's brand's image by trying to prevent the penny stock label. There is a negative stigma typically attached to penny stocks traded only over the counter.
A reverse split sending the stock higher might draw more attention from analysts. Higher-priced stocks attract more attention from market analysts, and if analysts have a favorable view of a company and its stock, it's great marketing for the company.
The Effect of a Reverse Stock Split
A reverse stock split has no inherent effect on the company's value, so the company's total market capitalization is the same after the reverse split. The company has fewer outstanding shares, but the share price increases in direct proportion to the reverse stock split. The total value of the shares an investor holds remains the same as well. If an investor owned 1,000 shares worth $1 each prior to a one-for-10 reverse stock split, after the split the investor would own 100 shares worth $10 each.
Jim are you still in FOG. Everything so very cryptic, we discussed before on the Walters site mainly horses, but confused about Craven, who for what it worth was one of my main reasons for investing, remember COVE. What did Craven say that made you sell on a stop loss. Are you going back In. You mention Craven but came out is that a worry. POODS maybe a great guy, I don’t know, but loads and loads of sells on what is supposed to be a great BEETALOO acreage. This board all of a sudden gone very cryptic.
You write very well, but for a person with only 15 posts and very late to this board I have to wonder who’s interests you have at heart.
You may well be right, reverse split, I really don’t know, but for a person who “As for those who are wondering who is this person, let me simply say, I started with nothing, worked hard and am worth more than the company and; therefore, do not feel rich enough to be so blase as the company.” why bother. I have worked very hard all my life and am nowhere near as rich as the company but have a serious interest here and would hate to be put away.
Who are you, what relationship with POQ, are you POQ. A litttle more info needed, no offence intended. All the best.
Of course I am interested to know if they are making inroads that’s why I asked the question. I agree Planning is essential but a little noise would not go amiss.Hope you got a good price for your million shares as the recent drop would be quite significant. As you say GLA
manyana manyana don’t think POQ an idiot but his silence is deafening. Wish the guy would do a bit of FOG promotion, we have a real lack of news, as all know here a real killer with the FOG shareprice. Need to make inroads now, still a lot of anti frackers out there making more noise than he is, a reversal decision, I know doubtful, but seriously who knows. It will rear its head again defo. A positive RNS or two needed, if we haven’t got any good news now it’s really worrying. Come on Phillip shout out load and remind folk out there we exist. Plus Phillip I’ve got a wedding to pay for so any help appreciated.
Thanks WW. I have written to FOG asking about any scheduled meetings. I�m in Manchester and will post if I get a response. Beetaloo apart was Karoo mentioned and if so without giving the game away positive ? Our patience will be rewarded. It�s hard watching the share price as we all know here FOG always drifts on no news. GLA.
Unsure if seen below, but it can�t help. http://www.abc.net.au/news/2018-04-19/labor-divisions-emerge-over-nt-fracking-decision/9674702
S�it, had this running for free, but when it dropped in line with the TSX topped up, so now now running for free. Been here before with FOG on good news, no great news and watched it drop like a stone. Tsx fighting back a bit but no way can this not move upwards after moratarium lifted. No sense in it. Perhaps just perhaps it�s waitng on the stipulations being put in place.
Think Turnbull in the background will be pushing and reminding Gunner and his cabinet what�s what. Gunnar has his get out of jail free card and will make the only realistic decision available, in fact maybe the decision already made and his time wasting is to make the Antis think he�s putting in a lot of thought and effort. Little change from last report.As for ppl not knowing once the Ok given and wheels get in motion think Oquigley can start wheeling and dealing. They know it�s a world class play or why all the moratorium fuss. Remember the Film � Field of Dream, build it and they will come� great film hope the same for this great board.
Glad it came out okish. Gunner has been given a get out of jail free card to let the Beetaloo proceed. Unsure of timings but sure Turnbull and others will put on external pressure to get this moving. GLA all the regulars, some of the new posters might not have this boards best interests.
Oilcountry99 made me laugh that. Relative newcomer I think 6 or 7 years.Followed John Craven, he created and sold Cove energy for about a billion, made me good money, nearly sold FOG when stepped out, but bought loads more at 5p ish. Like most of us here will have been a great idea or a total balloon. Won�t sell even if moratarium not lifted. Will pass onto my eldest, in a sane world it will eventually go ahead or the NT will go skint. The external pressure on the region will intensify. GLA it must be getting close,
Marty nobody knows for real what the share price will be. Its a gamble, probably one of the better ones, but ultimately the decision is not in our hands, it�s politics so be careful about jumping in with both feet. As stated previously to you, only invest what you can lose. Hope you make the right decision for you, best action is to read as much as you can as quick as you can and make the decision yourself. This is one of the friendliest boards with good knowledgeable posters, so a lot of good info to read through. All the best.
Martyw89 �4 would be great for all here but it ain�t going to happen. Might see 40 / 50 if moratorium lifted. But be careful because if not lifted / delayed price will drop. Will be ok in the long term as ban will have to lifted at some point. If got funds to invest there are worse shares to invest in but in reality a gamble. As for moratorium dates what about Cheltenham gold cup week. Most of Ireland in the Cotswolds then. I�ll go March 16th. GLA