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

About IKAN

Ikanos Communications is a provider of semiconductor products and software for delivering broadband solutions to the digital home. Co.'s broadband multi-mode and digital subscriber line processors and other semiconductor offerings power carrier infrastructure and customer premises equipment for network equipment manufacturers supplying telecommunications service providers. Co.s' products are at the core of DSL access multiplexers, optical network terminals, concentrators, modems, voice over Internet Protocol terminal adapters, integrated access devices, and residential gateways. Co.'s products are deployed by service providers in Asia, Europe, and North and South America. According to our IKAN split history records, IKAN has had 1 split.

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