InspireMD (NSPR) – Reverse Stock Split – 1000% upside

Although 1000% might look good, in absolute value it is worth only $2 (from $0.22 to $2.27), but I thought this was still an interesting case for educational purposes.

The reason for such a large upside is that InspireMD is doing reverse stock split (10 for 1) and instead of cashing out the fractional shares, it will round up to the nearest whole share. So anyone who has between 1-10 current shares will receive a single post-reverse-split share. So if you have only one pre-split share, you will also receive one post-split share (which theoretically should be 10x more valuable than the one you had before).

In any case this special situation idea is unactionable due to low absolute return.

More info on here.

Published on: July 22, 2015
Category: Other