This might make Cavico look better for a little while but this will not be helping the shareholders any. Here is a explaination I found. Not sure why we would want to approve something like this. The last time I was involved with a R/S, I lost my back side.
What Does Reverse Stock Split Mean?
A reduction in the number of a corporation's shares outstanding that increases the par value of its stock or its earnings per share. The market value of the total number of shares (market capitalization) remains the same. Investopedia explains Reverse Stock Split
For example, a 1-for-2 reverse split means you get half as many shares, but at twice the price. It's usually a bad sign if a company is forced to reverse split - firms do it to make their stock look more valuable when, in fact, nothing has changed. A company may also do a reverse split to avoid being delisted.
