Reverse Split Bid Compliance Rise from the dead
| Symbol | Sparkline 20 | Sector | R/S Date | R/S Ratio | Necessary Days | Streak | Gain Since R/S | Estimated Float | Offerings Since R/S | 13Gs Filed Since R/S | Price Spike Since R/S | |
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Equities are either in one of three states relative to their listing exchange:
(1) compliant, i.e, there are no discrepancies with requirements to maintain exchange listing,
(2) non-compliant, i.e. currently in deficit with one or more requirements, but not at-risk of being removed from by the exchange or
(3) non-compliant and at-risk of being delisted.
One particular requirement is that a security must retain a minimum bid price greater than $1.00. If a company falls below this threshold the company for a set number of days (check the exchange's ongoing listing requirements for more information), the company will fall into non-compliance. Some companies will file and execute a reverse split as a means to regain compliance with the minimum bid price. After an R/S, if the company maintains a closing price above $1.00 for 10 trading days, the exchange will issue a notice that the company has regained compliance.
In some circumstances the release of this state change by the company creates an impulse event for the stock price.
Often, post reverse split stocks are in a low float state that makes them targets for pump-and-dump offerings or short-trap squeezes.You can refer to this watchlist or for more complete lists refer to our Low Float watchlist.