Who in their right mind would split a stock trading at less that one dollar? This action causes me to have concern about the quality of the management of this company. Do they sit around and try to think of ways to screw shareholders? Brokers charge me substantial reorganization fees not to mention higher commissions for stocks under $1 and for the increased number of shares that have to be traded. First they try to weed out small shareholders with simultaneous splits to save money servicing them, then they reduce the share price to junk status by having 35 million share outstanding for a $16 million company. Somebody needs to take an undergraduate finance course. If they want to attract shareholders, quick screwing them, use your brains, and relist the company shares, not dilute them to junk value. RS
I have never heard of a "reorganization fee"?? Fidelity doesn't charge one. . .I, too, am a 10 year holder here, so I don't really trade - therefore the extra fee on large trade quantities doesn't make much difference for me. . .It IS hard to say why the split, but like Ms.Munch, I have probably paid for my original shares in dividends alone over 10 years, and the stock has gone up in value.
I spoke with Edmond Pera, the CFO at AMNF. He said the split was done because they anticipated the stock would trade back up to $0.60 to $0.70 after the split. To paraphrase his words, it is an effort at price manipulation. I do not agree with the split, but AMNF has been a great stock for me. The split makes me nervous, and I wish that if they had wanted to increase the share price they had either increased earnings or the dividend.