When a company such as GKNT 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 GKNT 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 GKNT shares, starting with a $10,000 purchase of GKNT, presented on a split-history-adjusted basis factoring in the complete GKNT split history.

About GKNT

Geeknet and its subsidiary, ThinkGeek, Inc. (ThinkGeek), sells collectibles, apparel, gadgets, electronics, toys and other retail products to consumers through its ThinkGeek.com website and certain products to Co.'s wholesale channel customers. ThinkGeek provides a range of products in a single web property that are not available in stores. Some ThinkGeek products are custom made and developed by Co.'s product development team, GeekLabs. Co. has several wholesale partnerships with retailers that allow Co. to reach its consumer audience. Co. has partnerships with certain retail store chains that have locations throughout the U.S. and Canada. According to our GKNT split history records, GKNT has had 1 split.

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