The filing states that "the Board believes that implementing a reverse stock split is likely to increase the market price for our common stock as fewer shares will be outstanding. The Board further believes that the increased market price of our common stock expected as a result of implementing the reverse stock split may improve the marketability and liquidity of our common stock and may encourage interest and trading in our common stock
I understand what the BOD wants to do. Don't think it is in the best interest of smaller investors - larger Mutual Funds, etc yes. When the stock price gets artificially boosted by the reverse split, this makes the stock more expensive to smaller investors & the dividend yield smaller. Taken together not a healthy way to boost the number of shares held.
Would prefer to see a buyback rather than a reverse split. A reverse split is a tool used by companies going bankrupt, stocks in violation of NYSE requirements, & stocks wanting to go private. Not a good sign. I loathe buybacks by the way. Have seen many reverse splits, most stocks after the split go back to their pre-split price. Then the investor is back to the same price pre-split with diminished interest in the company. This is a cheap way to get the number of shares down without spending any money - like with a buyback.
Do yourself a favor, vote on the reverse split - you owe it to yourself & fellow stockholders. I have already voted. If this resolution passes, I will immeadiatly sell my holdings. SAIC & I have a future together, just not with a reverse split.
Collin, just read 2013 Annual Report. No mention of a reverse split. Seems EKR talks with tongue in cheek. He is the proud owner of statements like: "They just increased my bill from $115 monthly, to $156", "Last couple of weeks I had a bid to buy 1 million shares at .0001. I feel ths could be either a #$%$ shoot or money maker. Time will tell." & more.