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Newbie to investing and never invested in a company that went through a reverse stock split.
In theory, I understand the market value should increase but I’m not seeing this reflected in the price and naturally my book value/ share is very disappointing.
A) When should I anticipate the stock appreciation to occur?
B) What’s the next move for companies that do this? Issue more shares?
TIA!
https://finance.yahoo.com/news/retransmission-hive-blockchain-announces-5-100000300.html
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That’s actually fairly small dividend
Why?
I guess my point was, all else equal, dividends are a signal that the company doesn’t think it can compound retained earnings at attractive rates of return. Of course you’ll DRIP the divs but those are being reinvested at a lower implied rate of return. In a perfect world, I’d prefer to see no divs until I’m ready to harvest my portfolio.
I’ve been saving heavily for a while, and I enjoy just seeing the money flow in. It gives me more exposure to what I’m invested in, and I’ve got 30 years to let it ride