When a company such as BGMD 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 BGMD split history from start to finish, an original position size of 1000 shares would have turned into 250 today. Below, we examine the compound annual growth rate — CAGR for short — of an investment into BGMD shares, starting with a $10,000 purchase of BGMD, presented on a split-history-adjusted basis factoring in the complete BGMD split history.

About BGMD

BG Medicine is a commercial stage company that is focused on the development and delivery of diagnostic solutions to aid in the clinical management of heart failure and related disorders. Co. has two diagnostic tests, the first of which is the BGM Galectin-3® Test for measuring galectin-3 levels in blood plasma for use as an aid in assessing the prognosis of patients diagnosed with heart failure, available as a blood test in the U.S. and the European Union. The second diagnostic test is the CardioSCORE™ Test, a multi-analyte biomarker-based blood test that is designed as an aid in the assessment of near-term risk for atherothrombotic cardiovascular events, such as heart attack and stroke. According to our BGMD split history records, BGMD has had 1 split.

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