Nuverra Environmental Solutions Inc. (fka NESCQ)

[marcpw]

re "Why do you see the R/S as a positive? They usually don't work out well for investors. Companies use them because they are most likely out of other options"

That's what most of us think and is usually true because most RSs are crummy microcaps that are dying. While NES by now may seem that way it never was that kind of stock or company, it's an oil service on the NYSE with an OK if diminished market cap and for the kind of institutions that go for that kind of stock the under $5 really is an issue in terms of discouraging investment or even checking it out.

More objectively I recall Credit Suisse thought a RS would be a positive when the stock was hanging around $4. So yes in the normal situation RSs are done by failing companies that want to stay listed but that just wasn't the situation when they authorized the RS. The fact that the stock price has cratered since then makes it obviously more compelling to do it now but it was already seen as a positive thing to do before that. With the averages near all-time highs a stock that have been hideous this year will at least get a look to see if it has potential and when institutions take a look they'll take a good look at NES with a 16 handle where they they'd just dismiss it with 1 handle.