Videogame Publisher THQ Attempting to Merge Stock

[Guest]

Videogame publisher THQ faces a delisting from NASDAQ should they fail to bring their stock price per share up past $1 by July 23.

Videogame Publisher THQ Attempting to Merge Stock : Read more

 

[computernerdforlife]

Stocks 101 on reverse splits: 1000 shares at $0.50 = 100 shares at $5 (reverse split)
Same value in the end, lower share count, higher share price.

 

[Alphi]

not really the same value.. as the new stock will have further to fall and will have less upside.

its also a clear admission that going above $1 for over 10 consecutive days is impossible. which dampens investor confidence...

 

[Raid3r]

Well no kidding...they ignored all their fan base on almost every critical game they have let loose. As far as I can tell, they are still ignoring that fan base. So hf/gl..that is all.

 

[ojas]

meh. they're taking great games and studios with them.

 

[billybobser]

What a list of upcoming games, that's sure to save them.

Wow

 

[atikkur]

im waiting for company of heroes two.. or similiar games like that. why take so long?

 

[ubercake]

Reverse splits almost always result in investors losing money, since the share price tends to drop almost immediately following. But if investors are still hanging on to their THQ shares, they aren't counting on much from THQ anyhow. Reverse-splits are a last-ditch effort. They don't attract investors. They only delay the inevitable.

 

[reviewer889]

"Darksiders II, Metro: Last Light, and South Park: The Stick of Truth"

With a line up like that, that's sure to drive them into the ground and fast!
Not only will they be delisted, they will file for bankruptcy at the same time.

 

[WyomingKnott]

Move over, THQ. Make room for Facebook.

 

[computernerdforlife]

"not really the same value.. as the new stock will have further to fall and will have less upside."

I hate to say but you're wrong on this point. The new stock will have further to fall but CAN fall the exact same percentage points to the lower levels, hence why the number of shares have been reduced. example: 50% of 50cents is 25 cents = 50% of 5 dollars is 2.50 dollars. See that, 50% for both scenarios and the ONLY THING that changes is the share number. You're going after a myth that because there is a higher dollar value, there are larger percentage changes to be made. Also, "less upside": both stocks have the number infinity to reach in numbers. There is always infinite upside available so you're wrong there too.

The only truth about your statement is that companies tend to fall back under a dollar even after a reverse split because they have to suck that bad in order to need this split to go over 5 dollars.

50% of something = 50% of the exact same thing with equal value(shares)
1000 shares at $0.50 value drops 50% = 100 shares at $5 value drops 50%

See that?