The interesting thing is the timing of the announcement of the reverse split. I don't know what time VSI released the news, but the Reuters story I saw was released today at 4:34, after the close. The story said:
"The record date for the reverse stock split is Jan. 14 [today], and the common stock will begin trading at the new price, giving effect to the reverse stock split, at the opening of trading on Jan. 15, the maker of video-conferencing products said in a statement."
There was news before of the proposed split, but the announcement of the actual decison and date seems to have been timed so that there wouldn't be a sudden selloff before the split took effect. That's how it seems to me at least.
I wonder whether the stock was up today because of the impending announcement -- meaning the market took a favorable view toward the reverse split, because it prevents delisting (for now at least).
But I also wonder about the timing of the announcement -- and how the stock will fare tomorrow. Has the stock been rescued, or drawn and quartered, as it were?
Anyway, all in all, it seems to have been the best decision -- a fate far better than delisting.
Brooke |
