Then reverse split discussions will begin. I think "they" can. Upon a reverse split announcement the stock drops below 70 cents..possibly below 60 cents or even 50 cents as this would be the second reverse split in a short period coupled with legal issues and a still soft Nat Gas background. This stock may be worth the gamble below 60 cents (IMHO). Oh yes, I think the stock's true value without the current management should be at least $2.50. Perhaps a lawsuit to get rid of the current board and management should be investigated?
I was proven wrong. "They" could not hold the price under $1 which was a difficult task as the value of the company is well in excess of $1 per share. Now that any discussion regarding a reverse split is off the table GST should slowly recoup. The only issue left is these consistently lousey weekly NG storage reports. Hopefully this trend reverses over the next few weeks or all energy companies will suffer.
This still has another six months to play out if the stock remains below $1 for a little while longer.
Last time the stock soared as soon as the reverse split took place, so all this nega talk of the stock maybe being worth a gamble at 60 cents is garbage, the stock is a bargain where it is trading and will continue to be a bargain until the price at least doubles from here.
On another note, the low volume at the lower price the stock has been trading at recently suggest to me there is some sort of negotiation going on by those who are accumulating stock in Gastar and perhaps one or two remaining large stock holders who want to get out. My guess is based on the volume around 99 cents that the buyers are trying to induce the sellers to lower their price one more time before the year is out. Once this takes place and/or judgement to dismiss is announced, which I think might be merited at least in part, this stock has NO problem trading above a buck from there on out.
Sentiment: Strong Buy
There is no need to reverse split the shares. The NYSE Amex, unlike NYSE or Nasdaq, doesn't not have a minimum share price maintenance requirement. The applicable criteria for suspension of an NYSE Amex stock are below and GST is not in danger of triggering any of them:
(b) Limited Distribution—Reduced Market Value—The Exchange will normally consider suspending dealings in, or removing from the list, a security when any one or more of the following conditions exist:
(i) common stock:
(A) if the number of shares publicly held (exclusive of holdings of officers, directors, controlling shareholders or other family or concentrated holdings) is less than 200,000; or
(B) if the total number of public shareholders is less than 300; or
(C) if the aggregate market value of shares publicly held is less than $1,000,000 for more than 90 consecutive days.
There is catch-all for "low selling price issues" but no specific dollar values or time periods are spelled out:
(v) Low Selling Price Issues—In the case of a common stock selling for a substantial period of time at a low price per share, if the issuer shall fail to effect a reverse split of such shares within a reasonable time after being notified that the Exchange deems such action to be appropriate under all the circumstances. In its review of the question of whether it deems a reverse split of a given issue to be appropriate, the Exchange will consider all pertinent factors including, market conditions in general, the number of shares outstanding, plans which may have been formulated by management, applicable regulations of the state or country of incorporation or of any governmental agency having jurisdiction over the issuer, the relationship to other Exchange policies regarding continued listing, and, in respect of securities of foreign issuers, the general practice in the country of origin of trading in low-selling price issues.
I don't think we'll see another reverse split, simply for the fact that the stock is trading below proven asset value and just about 1:1 at book. We might see an announcement of share buyback to get it going. But given the track record of incompetence and silence with management, I don't think we know for sure.
This is a broken stock right now. I'm not sure that dismissal of the lawsuit will be enough to get us back above $1.50. I think election of a new board member, and a change in some of the management might be what's needed.
I think they'll wait until after any decision is made regarding the Chesapeake lawsuit. If it's dismissed, that should be enough impetus for the stock to move above $1 on its own. If it's not dismissed, then perhaps a reverse split could be talked about.