Monday, December 31, 2012

GMX Resources Reverse Split After the Close on Jan 3 ($GMXR)

According to an OCC bulletin:

"GMX Resources Inc. (GMXR) has announced a 1-for-13 reverse stock split. As a result of the reverse stock split, each GMXR Common Share will be converted into the right to receive .076923 (New) GMX Resources Inc. Common Shares. The reverse stock split will become effective after the market close on January 3, 2013."
Splits and reverse splits have no economic effect, of course. However, in the case of low priced stocks it makes them easier for most people to short (due to margin requirements).

The restrictions on sale of the 16 million new shares should be expiring too. So, there's that plus an oil company with bonds trading at 40% that has an ex-split stock price of $6.50. May be in for some more declines...

1 comment:

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