Eagle Bulk Shipping Inc (EGLE)

[Huggy Bear]

No. Not joking. And I am a long term investor here. I had some shares before the split from .94

The share price is adjusted in a reverse split as well as the amount of shares outstanding. So my adjusted cost basis for those shares is 3.76

With Fridays close at 3.69 I am down a few percent from my original investment. With the lot I bought on the 1-4 R/S overeaction at 3.35 I am up in this investment overall.

Your fundamental knowledge of how a reverse split affects ones position is fundamentally flawed. The stock would now have to be trading at around one buck for me to be down 75% in my original investment, and that kind of a nosedive is not likely to occur.

They did the reverse split in the first place to keep their Nasdaq listing intact - Shares in any Nasdaq listed company that fail to consistently close above one buck are subject to delisting. So the company wisely gave themselves a large cushion for short term price fluxuation in their time of internal restructuring and shipping sector hardship.