Kevin,
First, there are not enough shares in MIDL to make a reverse split feasible, even if there were any logical reason to do it. There was a reverse merger in the past, which is a different animal, and it is in the past.
As for P vs W vs MIDL common. There was a news release about the P having a 3 for 2 split. Owning two shares would become three shares. Usually a stock split is a psychological gain, since you have more slices of pie, but smaller slices and in the end, the same amount of pie. In this case, since only the P split, there is minor dilution, and so you do end up with more pie.
Some are of the opinion that the split has not happened due to the shenanigins lately. They believe that the shares of P bought today will also receive the 3 for 2 split, so each P is worth 52.5 shares of common, not 35. When a stock trades ex-dividend, quotes usually show an x next to the quote, indicating the stock is not eligible for the dividend. MIDLP does not show an x, so it is not showing that it is ex-dividend. Therefrom the speculation about the split still being available. Since this is a split and not a dividend, I am less convinced of this scenario. I also think MIDL would not want to offend the SEC by putting out a press release indicating that the split was in effect and then not carrying forward with that. Due to the shenanigins, Arcon may have to come up with a solution that satisfies all parties. I was holding MIDLP on 5/29 and I still hold, so I'm less concerned about this detail.
As far as the recent run up, extra shares were being dumped in the P pool, so if it didn't appreciate as fast, there was a reason. Long term results will be different than short term run-ups, so if you want to hold, assume that everything will eventually become MIDL common. I'm buying MIDLW @ .25. I put together a macro which compares the purchasing power of $1000 for the trilogy, including selling a portion of the W to pay the exercise fee when MIDL crosses the $2.50 threshold and paying tax on the gain. At current prices, P split or no P split, it indicates the W are the best deal. Of course, your taxes might be at a different rate, they may split the P six more times etc etc etc, so make your own choice. Selling the common in favor of the W or the P is probably not a terrible idea, though.
GB |
