Six Flags mulling stock move to avoid delisting
Published: October 3, 2008 at 10:42 AM
Six Flags' stock has been languishing a few cents below a buck and if it doesn't rise soon, and stay there, the stock could be delisted.
A reverse stock split would consolidate shares, giving shareholders, say, one "new" share of Six Flags in exchange for every five "old" ones. Yeah, it's an accounting dodge, but it can be effective, not only in avoiding delisting, but in improving traders' perception of the stock.
Six Flags' financial troubles are well documented (search the TPI archives at right for plenty of posts, threads, etc.) , saddling the company with debt that's made turnaround at some parks too little too late to pump the stock price.