08-01-02
RTO Online
RTO Enterprises, Canada's largest Rent to Own, announced the implementation of a
stockholder approved '1 for 10' reverse stock split.
The company hopes to begin trading the new consolidated shares on Tuesday,
August 6th.
A 'Reverse Stock Split' is a reduction in the number of a corporation's shares
outstanding that increases the value of its stock or earnings per share. The
total value of the shares or, 'market cap', remains the same.
For example; You own 100 shares in xyz widget inc. The shares are valued at $1
per share. XYZ decides (for one of only a few reasons...none of which are a good
sign to investors) to do a 1 for 10 reverse split. You now own only 10 shares of
stock, but at $10 per share. In reality, nothing changes.
The two most common reasons companies perform reverse splits are...
-
Make the company stock look more valuable
A stock trading at $10 per share may appear more valuable than one trading at
$1.
-
Avoid being de-listed
Some Exchanges have minimum "per share" stock prices to be listed on the
exchange.
At press time, RTO Enterprises stock (RTO)
was down 14.29% for the day
at $0.60 per share, on volume of 50,000 shares. The stock is up +20.00% for the
year, but down from its peak in 1997 when the stock traded for over $5.00.
RTO Enterprises operates 130 stores in 80 cities in all 10 Canadian Provinces.
See our detailed history titled
RTO Enterprises,
our neighbors to the North
end
Home
|
