Try PCLND. The "D" drops off after (I think) two weeks.
us.rd.yahoo.com*http://www.forbes.com/2003/06/16/cx_zc_0616pclnd.html?partner=yahoo&referrer=
Priceline May Join Reverse-Split Winners Club
Zac Chase, 06.16.03, 5:20 PM ET
NEW YORK - Sometimes less can mean more.
The folks at Norwalk, Conn.-based Priceline.com are hoping this is true. The discount online travel firm announced a 1-for-6 reverse stock spilt effective today. In most cases, reverse stock splits are meant to bolster market confidence and, in Priceline's case, eliminate outstanding excess common stock. Investors woke Monday to find the Internet travel firm's outstanding shares at 37.5 million, compared with 227 million when the market closed June 13. Priceline maintains the reverse split was meant to line up its earnings results with peer companies, such as Expedia.com (nasdaq: EXPR - news - people ) and Hotels.com (nasdaq: ROOM - news - people ). But is a reverse split going to get the job done?
A look at the magic eight ball of reverse stock splits of major companies in the past five years meets with the answer, "Ask again later."
Of a list of 2001 reverse-split winners and losers, the losers are gone and the winners continue to succeed. Companies such as Internet service provider United Online (nasdaq: UNTD - news - people ) and j2 Global Communications (nasdaq: JCOM - news - people ) have seen marked post-split improvements. United, the result of the merger of NetZero and Juno, is up 794%; j2 is up 715%.
One of the more common impetuses behind reverse splitting is keeping floundering stock prices above the delisting minimum of $1. Many analysts say the buffered price offers temporary rejuvenation that becomes a kiss of death. A look at the ten biggest firms to authorize a reverse split since 2001 shows that this isn't always the case: AT&T (nyse: T - news - people ), Collins & Aikman (nyse: CKC - news - people ) and Capstead Mortgage (nyse: CMO - news - people ) have dropped while six others have seen their prices rise, and mining outfit Kinross Gold (nyse: KGC - news - people ) has seen no change.
Whether or not Priceline fits into this trend remains to be seen. Though the company closed down 22 cents to $25.22 today, it is projecting post-split second-quarter earnings of 12 to 18 cents per share, in line with analysts' consensus estimates of 12 cents.
Priceline is on the runway, waiting for signs to take off. |
