Skip navigation

By The Numbers


Current DateTime: 03:36:37 24 Nov 2009
LinksList Documentid: 23371764
    • Gold Will Collapse Like Oil Did in 2008: Charts

        The gold price has moved quickly and it has developed an important new uptrend characteristic. This so-called 'parabolic' trend is a dangerous type with a high probability of a sudden collapse.

RSS FEED

» Help

Current DateTime: 03:36:38 24 Nov 2009
LinksList Documentid: 30111251
powered by digg
Another Reverse Split Goes Splat
Published: Wednesday, 8 Jul 2009 | 8:40 AM ET
Text Size
By: Ariel Nelson
Director of Market Data & Content Services

Yesterday's close marked one-week since AIG's 1:20 reverse stock split [AIG  Loading...      ()   ].  With a one-week decline of over 40% versus an S&P [.SPX  Loading...      ()   ] decline of only 4.2% over the one-week period, will AIG's stock price rebound from this sharp decline, or will its shares continue to plummet? 

Unfortunately and more often than not, companies that attempt to lift their share prices from penny-stock levels through reverse splits end up doing more damage than help.  Understanding that some funds and exchanges have rules on minimum share prices, they view the action as a way to put lipstick on the pigs that they are or at least as a stop gap measure until they can turn the company around.  AIG's move, seems to have just given American taxpayers more to be frustrated with.

Here is a look at some other reverse stock splits from the past few years and how the companies' stock prices fared versus the S&P500 in the weeks that followed:

Comments?  Send them to

bythenumbers.cnbc.com

© 2009 CNBC.com
Add This share icon
Text Size
  • digg share

CNBC HIGHLIGHTS

  • A diet high in fat and sugar might actually be good for your portfolio.
  • Warren Buffett and Bill Gates discuss the economy and other subjects with CNBC's Becky Quick.
  • From the AIG&T to the Merrill Lychee, Jane Wells lists this year's fashionable holiday cocktails.
  • The show attracts a big TV audience every year, but this year it may take on even more importance.
  • …you'll want to be prepared. Tips for getting the most out of the post-Thanksgiving shopping frenzy.
  • Congressman Ron Paul explains to Squawk Box why he’s pushing legislation to audit the Federal Reserve.
ADD COMMENTS
Remaining characters


Current DateTime: 01:19:40 24 Nov 2009
LinksList Documentid: 29778428

Current DateTime: 01:02:05 24 Nov 2009
LinksList Documentid: 29779196

Current DateTime: 01:09:37 24 Nov 2009
LinksList Documentid: 29779199

Current DateTime: 01:02:06 24 Nov 2009
LinksList Documentid: 29779198
  Data is a real-time snapshot  *Data is delayed at least 15 minutes
Global Business and Financial News, Stock Quotes, and Market Data and Analysis

© 2009 CNBC, Inc.  All Rights Reserved.
A Division of NBC Universal
Thomson ReutersThomson Reuters