November 6, 2015
Dudley Pierce Baker
I have previously expressed my views on reverse stock splits,
“..Frankly, I hate to see roll backs because inevitably the share price continues to decline. Actually I have been known to sell shares on the news of a roll back and then repurchase them at lower prices in a few weeks or months, assuming I still like the company…”
One of my personal holdings ‘was’ Endeavour Mining with 4 gold mines producing in Africa over 500,000 ozs a year and will great upside potential, if and when gold resumes it’s uptrend.
Endeavour Mining, TSX:EDV announced after the markets closed on Thursday, November 5,2015 that they were rolliing back shares, ‘a reverse stock split’, 1 for 10. Frankly, I did not see this coming.
Bottom line is that I sold my entire position early on November 6th and would like to thank management for making what I deem to be a stupid decision and screwing over the vast marjority of their shareholders. Good luck to the management as their stock options will be adjusted as well and will probably never be worth anything. Great!!
In my opinion, a reverse split only makes sense, maybe, if it is done to get a higher share price to do an offering or to prepare for an uplisting on another exchange.
Adios, Endeavour Mining, EDV, I will miss the upside possiblities….