Hovnanian Enterprises Class A (HOV)

[beachboy3]

I strongly disagree with your assumptions. The NYSE notice of being <$1 and initial 6 month listing extension coincided with the announcement of the ASM/proxy vote. It is only logical to add the RS proposal to the proxy vote so the company has that option, if needed, to keep listed. The 6 month extension is good through July. Although the company didn't state that it would only RS if necessary to stay listed, it also didn't say that it was definitely executing, if voter approved. There is plenty of time for the stock to get >$1. The stock dropped below $1 in 2009 and 2011, and though I wasn't watching HOV then, I don't think that it did a reverse split either of those times. The stock rebounded both times very nicely, and I see the same scenario likely this time. In summary, reverse split is not a given, but the company needs the option ready if needed.