Aig

See Michael Russnow's ProfileThank you, Regina1, except it's a bit too coincidental that suddenly, just as a shareholders meeting occurs and after the last weekend of proxy voting for the reverse stock split, that the stock went down 13 cents Monday and then 17 cents today.

There has been all sort of news about the company and this reverse split is a very dramatic change, a view which was supported by Jeanine Poggi of Street.com (quoted in my article above).

Hopefully, the dust will settle and investors will calm down, but I refuse to believe the reverse split had only inconsequential effect on what just transpired.

Plus, Citigroup has now asked for permission to do a reverse split of seven possibilities, ranging from 1:2 all the way to 1:30, which I find incredible.

The Board of Directors has asked their shareholders to vote on this by September and they will have until next June to decide whether to do so.

Don't these companies realize that it sends a poor message, i.e.

that an artificially inflated stock price is not going to fool the institutional investors they are seeking to return to the fold? BTW, I note that one of the major items AIG was pushing, authorizing several billion more common shares, went down to defeat.

Pity the shareholders didn't do the same with the reverse split.



http://www.huffingtonpost.com/michael-russnow/aig-plummets-didnt-the-re_b_223470.html