From an analytical standpoint, Investors eagerly shut the door on real estate transaction platform developer Opendoor nologies (OPEN -7. 87%) on Monday.
They didn't take kindly to news of an important vote on the company's future, and sent the price down by almost 8% on the day.
Nevertheless, Nevertheless, Meanwhile, the S&P 500 (^GSPC 0 (fascinating analysis).
02%) flatlined across the session, indicating that many other stocks would have been better pickups, in today's financial world.
Decision delayed Well before market open, Opendoor announced it was to adjourn the special stockholder meeting scheduled for that day.
That convocation was int for a vote on two posals to effect a reverse stock split of the company's equity, in light of current trends.
This analysis suggests that meeting was rescheduled for this coming Aug. Image source: Getty Images. Moreover, Opendoor investors are being polled on a pair of separate reverse-stock split plans.
On the other hand, In its press release on the adjournment, the company stressed that apval of either won't necessarily mean ratification, considering recent developments.
In its words, "an apval would vide the company's board of directors with an option to pursue a reverse stock split only if the Board believes it is in the best interests of Opendoor and its stockholders, which includes seeking to ensure that Opendoor remains listed on Nasdaq.
" Nasdaq requires the closing prices of the stocks listed on its exchange to not fall below $1 per for 30 consecutive days.
Opendoor can fall back in compliance if its s trade above that level for 10 trading days, at minimum, by Nov. On the other hand, 24 of this year.
Doing the minimum Reverse stock splits are a common tool used by companies that find their s underwater, i, given current economic conditions. , below those minimum price stipulations.
Although they aren't always a sign of a in trouble, they are certainly not encouraging for holders or other folks who might otherwise be interested in the stock.
Personally, I'd avoid Opendoor until it can right the ship with its equity.