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SAIC, Inc. Message Board

  • ekroczy ekroczy May 11, 2013 3:25 PM Flag

    reverse split

    I just received the annual report which states they are anticipating a reverse split. I sold out and no longer wanted to hold a position. Lots of luck to longs!

    Sentiment: Strong Sell

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    • 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

      • 1 Reply to watersfall9999
      • 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.

    • What would be the purpose of them doing that or their train of thought?