PALM was a favorite of this thread. Called a POS by A$P
07/26 16:51
Palm, Shares in Slump Since IPO, May Seek Reverse Stock Split
By William SelwaySanta Clara, California, July 26 (Bloomberg) -- Palm Inc., whose shares on the first day of trading were worth 121 times what they are today, will ask investors for approval to swap each share for as little as 1/20th of a share to boost their value. The step, called a reverse stock split, would slash the number of shares outstanding and increase the trading price of the remaining shares. At a shareholder meeting on Oct. 1, investors will be asked to give the hand-held computer maker permission to declare a reverse split where between 10 and 20 shares would be exchanged for one. Palm's shares have plunged as the computer maker reported losses during five of the past six quarters, while consumers and businesses spent less on electronics. The reverse stock split would bolster the Santa Clara, California-based Palm's stock price before a planned split of the company into two, one that makes operating-system software and one that builds computers. ``Typically, stocks priced above $5 are more attractive to institutional investors,'' said Jim Christensen, a spokesman for Palm. Palm intends to split into two companies later this year or early next year, Christensen said. Palm shares, which jumped as high as $165 during their first day of trading in March 2000, fell 8 cents to $1.36 today. |
