Chesapeake’s Reverse Stock Split Bombs, Company “On Life Support”

Chesapeake Energy pulled the trigger on a reverse stock split after the close of trading on Tuesday, combining 200 shares into one single new share (see Chesapeake Energy Reverse Stock Split 1-for-200). The old price per share closed on Tuesday at a paltry 13 cents/share. After the reverse split was done, the new share price became $26.64/share. Keep that in mind: The old price of $0.13/share with 200X more shares is equal to the new price of $26.64/share with 200X fewer shares. The company’s overall capitalization (its value or worth) is the same in both cases. So what happened to the share price yesterday, the first full day of trading at the new price?

Please Login to view this content. (Not a member? Join Today!)
You do not have permission to view the comments.

Please Login to post a comment