Hello,
NEWL did a 1-for-50 reverse split. When it closed last night, market capitalization was 9 million or so, the price per share when it closed was 0.06 or so. I'm a bit confused about the the reverse split work. According to the info I was able to find online is that if you own 100,000 shares, after the 1-for-50 reverse split, you own 2000 shares. If the shares were bought at $1, now each of 2000 shares is worth $50. If I'm wrong, please clarify the reverse split for me?
What is confusing me is NEWL pre-market price was $3.21 and the market capitalization was 445.89M. Could it get that high from 9M to 445.89M before the market start? Or the 100,000 shares an investor owns remain 100,000 shares and don't get reduce to 2000 shares after the reverse split?
I would greatly appreciate you clarification
Reverse Split?
Re: Reverse Split?
Probably just a temporary glitch while the systems took the split into account. You now own 2000 shares after the reverse split.
In fact, I see that the market cap is now at about $6M, trading down 30%. Reverse splits are usually a sign of desperation, so the market doesn't take to them kindly.
In fact, I see that the market cap is now at about $6M, trading down 30%. Reverse splits are usually a sign of desperation, so the market doesn't take to them kindly.
Re: Reverse Split?
9 x 50 = 450. That would be correct if the price jumped by a factor of 50 without the number of shares being adjusted. What you experienced was one part of the computer being faster than another. The price was bumped up when you looked, but the number of shares hadn't been reduced yet.architect wrote: What is confusing me is NEWL pre-market price was $3.21 and the market capitalization was 445.89M. Could it get that high from 9M to 445.89M before the market start? Or the 100,000 shares an investor owns remain 100,000 shares and don't get reduce to 2000 shares after the reverse split?
What Chan_va said.
Re: Reverse Split?
This company is a total fraud, just so you know. Yes, it may go up before it goes down, but as far as I can tell all they produce is misleading press releases and accounting irregularities.
Re: Reverse Split?
NEWL doubled today, shows how good my market timing sense is.Tanelorn wrote:This company is a total fraud, just so you know. Yes, it may go up before it goes down, but as far as I can tell all they produce is misleading press releases and accounting irregularities.
Re: Reverse Split?
Shutting the barn door after 99.x% of the shareholder value has already left?
Nasdaq halts NEWL indefinitely and begins investigating their imaginative press releases
I sure hope OP sold since it won't be possible now for quite some time, and I doubt the recently high prices will be available again either.
Nasdaq halts NEWL indefinitely and begins investigating their imaginative press releases
I sure hope OP sold since it won't be possible now for quite some time, and I doubt the recently high prices will be available again either.