When a company such as RLJE 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 RLJE split history from start to finish, an original position size of 1000 shares would have turned into 333.333333333333 today. Below, we examine the compound annual growth rate — CAGR for short — of an investment into RLJE shares, starting with a $10,000 purchase of RLJE, presented on a split-history-adjusted basis factoring in the complete RLJE split history.

About RLJE

RLJ Entertainment is a digital channel company. Co.'s reporting segments are: Digital Channels, which exploits much of the same film and television content as the Wholesale Distribution segment but exploits the content directly in the U.S. to consumers through various proprietary subscription video on demand channels; IP Licensing, which includes intellectual property owned or created by Co., other than certain fitness related content, that is licensed for exploitation worldwide; and Wholesale, which consists of acquisition and worldwide exploitation through its wholesale partners in various formats, including DVD, Blu-ray, digital, broadcast, VOD, SVOD, downloading and sublicensing. According to our RLJE split history records, RLJE has had 1 split.

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