When a company such as AMCO conducts a reverse share split, it is usually because shares have fallen to a lower per-share pricepoint than the company would like. This can be important because, for example, certain types of mutual funds might have a limit governing which stocks they may buy, based upon per-share price. The $5 and $10 pricepoints tend to be important in this regard. Stock exchanges also tend to look at per-share price, setting a lower limit for listing eligibility. So when a company does a reverse split, it is looking mathematically at the market capitalization before and after the reverse split takes place, and concluding that if the market capitilization remains stable, the reduced share count should result in a higher price per share.

Looking at the AMCO split history from start to finish, an original position size of 1000 shares would have turned into 100 today. Below, we examine the compound annual growth rate — CAGR for short — of an investment into AMCO shares, starting with a $10,000 purchase of AMCO, presented on a split-history-adjusted basis factoring in the complete AMCO split history.

About AMCO

Armco Metals Holdings is a holding company. Through its subsidiaries, Co. is engaged in metal ore trading and distribution and scrap metal recycling. Co. imports, sells, and distributes to the metal refinery industry in China, a range of metal ore including iron, chrome, nickel, copper, titanium and manganese ore, as well as non-ferrous metals, and coal. Co. obtains these raw materials from suppliers mainly in Brazil, India, Indonesia, Ukraine and the U.S. and distributes it in China. Co. also provides sourcing and pricing services for various metals to its customers, and recycles scrap metal and sells the recycled product to steel mills in China for use in the production of recycled steel. According to our AMCO split history records, AMCO has had 1 split.

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