Jesica,
It will NOT go below a dollar, and most likely will go UP. However, if it does go down because of extremely large pressure, then it would only be a couple of dollars.
In any case, the point is that if it does go down, the stock will come back up, and will go above the price it was set to at the split. This would happen shortly after any such downward occurrence.
1) I completely disagree with you on this. Reverse split does virtually nothing to a stock, other than compliance with the listing rules. If a LU goes bankrupt, considering the large debt LU has, the stock will probably trade very low, certainly below the book value ($0.27 right now).
2) Example of recent reverse split: COSN, about a week ago or so. The split ratio was 10:1, COSN was at 0.35 when it was done, now it is at 2.70. |
