Conexant(CNXT) stock split today 1 for 10 which is a reverse split. For every 10 shares you owned you now own 1. Typically this helps a company’s stock get out of the quagmire it seems to be stuck in because it has a higher perceived value. Bluefly(BFLY) did this recently and it seems to have helped stabilize the price.
I’ve had Conexant stock since 2006 when it was around 3.20. Comparitively, that buy price now becomes $32 due to the reverse split.
The good news here is a reverse split essentially removes shares from the market making the float smaller and again, giving the appearance of a more valuable stock because they supply becomes more limited.
Going forward, I’d like to see this recover to previous levels but the semiconductor industry has been suffering along with the rest of the economy. There also won’t be any earnings announcements soon so price action for this stock is going to be solely based on momentum, which is fine as long as the momentum stays. I also don’t think this stock is going to be shorted anytime soon because there won’t be any shares to borrow.
I own stock in Conexant and Bluefly.
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