When a company such as PICO 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 PICO split history from start to finish, an original position size of 1000 shares would have turned into 200 today. Below, we examine the compound annual growth rate — CAGR for short — of an investment into PICO shares, starting with a $10,000 purchase of PICO, presented on a split-history-adjusted basis factoring in the complete PICO split history.

About PICO

PICO Holdings is a holding company. Through its subsidiary, Vidler Water Company, Inc. (Vidler), Co. is focused on monetizing its existing water rights and storage credits that it owns in Arizona, Colorado, Nevada and New Mexico. Co. has developed sources of water for municipal and industrial use, either from existing supplies of water, such as water used for agricultural purposes, acquired unappropriated (previously unused) water, or discovered new water sources based on science and targeted exploration. Lincoln County, NV and Vidler has a water delivery teaming agreement to locate and develop water resources in Lincoln County, NV for planned projects under the Lincoln County master plan. According to our PICO split history records, PICO has had 1 split.

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