Good find.
Ashfield Capital's Hill noted that when Sweden's Ericsson (ERIC) in early 2008
recalibrated the ratio of ordinary shares to the American depositary receipts that
trade in the U.S. -- a similar move to a reverse stock split -- the ADRs became the
best-performing shares in her portfolio in the next year.
The key point is whether fundamentals improve. Paul Nolte, director of investors at
Hinsdale Associates, said a reverse split "wouldn't necessarily change anybody's
opinion" about Citi or any other company that chooses to enact one. "It's still about
the fundamentals," he said.
How a stock might perform following a reverse split should be analyzed on a caseby-
case basis, he added.
Be well