Received proxy stating they are contemplating a reverse split. In many cases for small companies, my experience has been over time, they go back down to the pre-split price. Therefore I sold. Lots of luck to longs.
Yeah, I think maybe you bailed too soon...or at least, the R/S as you describe it, is the wrong reason. Remember, they are very soon to spin off FTD to existing shareholders and as was pointed out to me, the remaining stock has to keep it's value up. I believe $5 was the target price for the remaining UNTD...they can't remain there without doing the Reverse Split. This allows UNTD be treated (bought/sold) like a normal stock post spin-off. To do otherwise would creat yet another sub $5 stock that the big boys can't own.
We might (should) find ourselves owning two stocks with a Price per Share well above the $5 threshold...total Market value is anybody's guess but I'm holding anticipating another $1.50+ in total valuation increase from today.
That likely means your small companies had NO earnings to speak of, and United Online is opposite of that. They are making a good move with the reverse stock split. In fact, it will keep both post split parts trading above the $5 level, which means both shares will be capable of being held on margin or purchased on margin. This will keep all avenues of buying demand for the shares open. That is a very smart move. If United Online was a company with NO earnings, I would agree with you, but that is not the case here.