Use access key #2 to skip to page content.

CDE and historical trends...

Recs

1

June 15, 2009 – Comments (4) | RELATED TICKERS: CDE

I voiced concern in a previous BLOG posting about Couer D Alene mines and their reverse split.  Granted, on the day of the reverse split, I looked like king kong on TMF thanks to a little glitch, but the concern was that most companies that execute a reverse split on their stock in order to make things look better or to get themselves off of the pink sheets, end up trending back to the pre-spli price.  CDE is already 4 dollars closer to its pre-split price.  Prior to the split, CDE was trading around $1.40 a share.  After the 10 for 1 reverse split, they bounced up to above $15 a share for a couple of days, and now they are down at about $11.50 a share.

So is CDE destined to hit the $1.40 mark or lower, yet again?  I sure hope not, but can't help but feel that historical trends, like the one that shows most reverse splits going against the equity holders, are usually spot on.

4 Comments – Post Your Own

#1) On June 15, 2009 at 12:06 PM, portefeuille (99.67) wrote:

... , but the concern was that most companies that execute a reverse split on their stock in order to make things look better or to get themselves off of the pink sheets, end up trending back to the pre-spli price.

Even if most did you are probably unable to make a profit because those that don't, the winners, make up the losses of the losers. It would be a little to easy otherwise. There may be some free lunches (or at least very cheap ones), but they are usually not quite that obvious ...

Report this comment
#2) On June 15, 2009 at 12:08 PM, portefeuille (99.67) wrote:

make up the losses

make up for the losses

Report this comment
#3) On June 15, 2009 at 12:51 PM, XMFSinchiruna (26.96) wrote:

http://www.fool.com/investing/general/2009/05/27/the-precious-glory-of-an-instant-10-bagger.aspx

 

Report this comment
#4) On June 15, 2009 at 1:26 PM, speedybure (< 20) wrote:

Using historical comparisons is a useless method of predicting such things. Like markets companies are extremely dynamic and their intrinsic value will ultimately determine the price of a stock. I happen to like CDE although i have yet to initiate a position. 

It is true usally crap comapnies engage in such actions is jds uniphase etc, but CDE has displayed characteristics of a dramatic turnaround. I highly doubt they will see under 2.00 again. 

Report this comment

Featured Broker Partners


Advertisement