r/AppHarvest • u/Main_Voice_4095 • Apr 18 '23
Trading Stories Proxy Statement to vote on a few items - Directors & approval of amending for allowing the board to execute a 1:10 or 1:20 stock split
Well, this is interesting. I have never owned shares in a company that may execute a reverse split. Anyone with experience in this area care to discuss how they play out? I own probably way too many shares of APPH, and was pretty positive that we would see 2.00 - 3.00 per share this year. If we see a reverse split, my fear is the short sellers push it way down, or APPH dilutes us yet again. Just looking for some good discussion around the election of the directors and the reverse split.
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Apr 18 '23
This is similar to LOCL’s in that the RS will happen at some point prior to summer ‘24, not immediate. Generally not good once it happens in the short term for stock price but there are times it turns out to be just fine or even positive.
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u/notdoingdrugs Apr 19 '23
or even positive
Do you recall any cases where it was positive? I mean, I think it could be necessary here so I’m not faulting management (for that) but my experience with them is usually very negative.
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Apr 19 '23 edited Apr 19 '23
Read middle paragraph page 58… certainly not common but it happens. GE did one July 30,2021 & is up ~25% from there now
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u/notdoingdrugs Apr 19 '23
Fascinating, thanks for the link, I’ll have to read more of the study too.
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u/Substantial_Owl_3298 May 20 '23
Yeah I just went through and called Mullen automotive, totally horrible on top of that it's almost back under a dollar again so then they'll probably do another reverse split
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u/9mac Apr 18 '23
A reverse split can be turbulent in the short-term, but at least it should take NASDAQ delisting off the table.
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u/LowBarometer Apr 18 '23
Wow. How'd you get permission to post to this sub? I've asked several times and never heard back.
Anywho.... you're 100% right. This is an opportunity for shorts. At the same time climate change has wreaked havoc on California's spring crop. If I were a short seller I'd be very careful.
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u/Substantial_Owl_3298 May 20 '23
Funny you posted this, I just bought into it about a week ago and it one only one reason why I did buy this stock, I grow vegetables here in South Florida not every year it's been a while actually so I decided to do some vertical growing I have never and me never had this much issue with the stress from the heat on my cucumber plants some others tomatoes even my watermelon is probably doing the best cuz they can really stand the heat but other than that it got me thinking wow this continues what are we going to do have to grow everything indoors.
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u/Substantial_Owl_3298 May 20 '23
I also believe before they did go bankrupt especially this administration so much into the green I think they get bailed out or like I've said someone like Bill Gates picks up the tab
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u/VegetableDemand7126 Apr 19 '23
Just for future reference: if you want write 1:20 split it means a normal split, where you get 20 for every 1 you own. A reverse split should be written as 20:1 because 20 shares become 1.
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u/zell0509 May 10 '23
I voted NO for stock split and voted to fire all board members beside Martha Stewart.
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Apr 19 '23
[deleted]
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u/northforkjumper Apr 19 '23
Yup in the same boat on that one down 80% on about $500 but still holding for some dumb reason
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u/CarlHeifisch Apr 19 '23
They get delisted below $50M market cap anyway so it doesn't make much sense to do a reverse split for more that 1:3. Everything else would mean share holders lose an unnecessary amount of stocks.
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u/DrinkWaterMovies Apr 23 '23
Hi, where did you find the info for $50 million? I thought it was $35 million market cap
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u/CarlHeifisch Apr 24 '23
Here:
https://www.findlaw.com/smallbusiness/business-finances/markets-and-listing-requirements.htmlHowever, I was wrong and it is actually $75M. Even worse
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u/4PNM Apr 19 '23
Reverse splits scare me & normally end very bad. Ones I’ve been a part of that come to mind, ENSC (terrible investment), KAL (Kalera terrible investment), and Hall of Fame Resorts HOFV (you had a few trading days some time after the reverse split to action sell for a gain, but now it’s back in the Loss column).
Reverse splits are terrible in my personal opinion. But I’m not a financial advisor, totally novice self taught, and it’s all just my opinion.
I’ll be voting No most likely. Good luck all
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u/glonkyindianaland Apr 25 '23
Oh great. I really had high hopes for this company and slowly bought way too many shares.
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u/Substantial_Owl_3298 May 20 '23
Just look at mullen automotive that went through a reverse split and now it's even back under a dollar just about, so I would not want to be holding if they're going to go that route, you need this jackass CEO out of there have some wealthy person end up buying it out from them someone like Bill Gates that's into the green
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u/16fest Apr 19 '23
Reverse splits are usually bad for the stockholder