Why Virgin Galactic's Reverse Stock Split Went Splat
Well, it seems I was too optimistic.
Writing up Virgin Galactic's (NYSE: SPCE) 1-for-20 reverse share split announcement last week, I explained that by gluing together 20 ordinary shares into a kind of "mega-share," the company would transform its apparent share price from $0.74 (Thursday) into a new share price of $14.80 (today).
Instead, Virgin Galactic's share price has plunged, and as of 11:50 a.m. ET Monday is down 17.2% at $11.34.
Source Fool.com