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THQ Planning Reverse Stock Split

by on May 28, 2012
 

THQ has found a way from keeping their stocks from being delisted, at least for now.

The company filed plans with the SEC Friday to hold a stockholders meeting on June 29. The purpose of the meeting is to propose a reverse stock split to help avoid being delisted from NASDAQ.

A reverse stock split will make the apparent value per share become greater by making there be less shares. For example, out of the three proposed options (1:3, 1:5 and 1:10) owning three stocks before under the 1:3 ratio would make only one stock after the reverse split.

THQ received the delisting warning from NASDAQ on Jan. 31.

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    May 29, 2012 at 7:23 AM

    In a nut shell this is what’s happening. The major institutions vested in the company wants there money not less stock. Thq wants and needs more money to stay afloat. Ergo the reverse split. Is this a good idea? Absolutely not it’s the worst thing that this company can do to the small investor. There intentions are to drop the stock to under .40c then initiate a reverse stock split in the range of 1-10 making the share worth 4 dollars or so. Even if your invested 20k in this company at or around 70 – 80 cents you’ll never see that investment again. If they drown out the stock to under .45c youll be out half your investment in 3 months. Thq is a sinking ship with a bus size hole right under the motor. My advise is to sell and sell now before it hits .40c and your out half of your investment.

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