Whats behind Detwilers reverse-forward stock split?
Detwiler, Mitchell & Co., the Boston-based investment bank, took an unusual step recently, conducting a reverse-forward stock split. It sounds like something out of gymnastics, and perhaps may even involve a degree of difficulty, but the outcome might help the company stay on solid ground after a rough couple of years that have included posting losses, departures of high-profile executives, and its stock being removed from the Nasdaq. Detwiler late last month completed a 1-for-600 reverse stock split, immediately followed by a 600-for-1 forward split. The result, Detwiler said in a statement, was that the company would redeem 64,000 shares held by 500 shareholders for approximately $1.25 each, a premium over the most recent $1.10 stock price on May 28. The stock split is the latest in what has been a tough row to hoe for Detwiler, but there may be something worth harvesting after all the labor. Almost a year ago, Detwiler appeared to be in serious trouble. The company lost $4.2 million
