So I bought into AIG at around $1.96 or so. Had about 10k in it. Recently sold half that as it was dropping like a rock. What does this 1-20 reverse stock split do to my shares I'm still holding?
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So I bought into AIG at around $1.96 or so. Had about 10k in it. Recently sold half that as it was dropping like a rock. What does this 1-20 reverse stock split do to my shares I'm still holding?
It means that starting today (from the look of the price) you now have LESS shares at a higher price.
A reverse split works like this-
I own 10,000 shares of AIG and I own them at 1 buck a share (or whatever, this is just an example).
AIG does a 1 for 20 reverse split, NOW I own 500 shares of AIG and the stock trades at 20 bucks.
The share count goes down, the share price goes up, it is a non-event unless the stock is a piece of shit and then it will go back down and after a reverse split a down move is that much more dramatic because of the reverse.
Reverse splits happen all the time, it happened for JAVA in Nov of 2007 (a 1 for 4) it happened for CIEN in 2006 (a 1 for 7 reverse).
Its a way to get the share price high enough that short sellers ease off shorting it and more funds will own it.
It means that starting today (from the look of the price) you now have LESS shares at a higher price.
A reverse split works like this-
I own 10,000 shares of AIG and I own them at 1 buck a share (or whatever, this is just an example).
AIG does a 1 for 20 reverse split, NOW I own 500 shares of AIG and the stock trades at 20 bucks.
The share count goes down, the share price goes up, it is a non-event unless the stock is a piece of shit and then it will go back down and after a reverse split a down move is that much more dramatic because of the reverse.
Reverse splits happen all the time, it happened for JAVA in Nov of 2007 (a 1 for 4) it happened for CIEN in 2006 (a 1 for 7 reverse).
Its a way to get the share price high enough that short sellers ease off shorting it and more funds will own it.
So it basically lowers my available shares...that I kind of understood. Whats the damage on my loss/gain from this move?
Say I owned 2,000 shares now...which is now 100 shares. And I bought it at $2 Is it literally a 900% gain at the price of $18 now?! If this is the case...should I get the hell out while I can?
Side note: CAR is selling at damn near $6 still in deep at $0.86!!!
So it basically lowers my available shares...that I kind of understood. Whats the damage on my loss/gain from this move?
Say I owned 2,000 shares now...which is now 100 shares. And I bought it at $2 Is it literally a 900% gain at the price of $18 now?! If this is the case...should I get the hell out while I can?
Side note: CAR is selling at damn near $6 still in deep at $0.86!!!
First I am GLAD you are holding that CAR, just keep a price in mind that if it violates it you bail and dont look back..and as the stock goes up, you slide that price UP in your mind..so at 6 bucks maybe you decide if it crosses 5 you bail, if it hits 7 then you slide that up to 6 etc etc..
Here is how the reverse split works..
2,000 shares purchased at 2 bucks means 4000 invested.
100 shares owned at 18 bucks equals 1800 bucks.
There is no free money and the net effect is zippo..fewer shares at a higher price.
Just focus on your balance versus the share total and price.
No it doesnt mean that at all..
First I am GLAD you are holding that CAR, just keep a price in mind that if it violates it you bail and dont look back..and as the stock goes up, you slide that price UP in your mind..so at 6 bucks maybe you decide if it crosses 5 you bail, if it hits 7 then you slide that up to 6 etc etc..
Here is how the reverse split works..
2,000 shares purchased at 2 bucks means 4000 invested.
100 shares owned at 18 bucks equals 1800 bucks.
There is no free money and the net effect is zippo..fewer shares at a higher price.
Just focus on your balance versus the share total and price.
So in essence, I made a damn good move getting rid of most of my AIG.
I'm definitely just going to sit on CAR long-term. The small-caps have rallied nicely in the 2Q and the travel industry is still weak at best. So this move it's made is awesome...if things start to turn around late 3Q early 4Q economy wise n travel indursty wise...this stock could rally towards $10 at some point in my mind. When things fully turn around, and they get their balance sheets cleaned up this could easily get back up near $15-20 where it was before this mess took place.
Any news on DRYS Wall?! Just kinda sitting waiting for that to hit under $5
So in essence, I made a damn good move getting rid of most of my AIG.
I'm definitely just going to sit on CAR long-term. The small-caps have rallied nicely in the 2Q and the travel industry is still weak at best. So this move it's made is awesome...if things start to turn around late 3Q early 4Q economy wise n travel indursty wise...this stock could rally towards $10 at some point in my mind. When things fully turn around, and they get their balance sheets cleaned up this could easily get back up near $15-20 where it was before this mess took place.
Any news on DRYS Wall?! Just kinda sitting waiting for that to hit under $5
DRYS is a dead duck..they need a 1 for 10 reverse split themselves, since George sold shares so cheap that is almost what he did on purpose.
The stock is a great deal down here but he ballooned the share count so quickly that it killed any momentum that the move in the BDI could have given. If he hadnt sold the house, the stock would be in the 20s and maybe 30s.
I lost a bunch on shares I owned higher but made a nice hit on shares from 3.50 to 7, so I will look to re-enter if she goes under 5 again.
AIG could end up doing fine but with a bearish financial group, this reverse split makes a move down that much more painful..
DRYS is a dead duck..they need a 1 for 10 reverse split themselves, since George sold shares so cheap that is almost what he did on purpose.
The stock is a great deal down here but he ballooned the share count so quickly that it killed any momentum that the move in the BDI could have given. If he hadnt sold the house, the stock would be in the 20s and maybe 30s.
I lost a bunch on shares I owned higher but made a nice hit on shares from 3.50 to 7, so I will look to re-enter if she goes under 5 again.
AIG could end up doing fine but with a bearish financial group, this reverse split makes a move down that much more painful..
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