Sphere 3D exploded 65.32% one day following a 1-for-25 reverse stock split. Nearly 1 million shares traded hands on the Nasdaq Thursday. Sphere 3D’s rally Thursday was enough to capture the Daily Stock Challenge Breakout award.
Sphere 3D Completes Devastating 1-for-25 Reverse Stock Split
On July 11th, Sphere 3D completed a 1-for-25 reverse stock split. Sphere’s share price has collapsed nearly 90% in the past year. First of all, from a split-adjusted high of $23.25, Sphere has recently bounced off a low of $2.44. Why do a 1-for-25 reverse stock split?
“The share consolidation is intended to increase the per share trading price of Sphere 3D’s common shares to satisfy the $1.00 minimum bid price requirement for continued listing on the Nasdaq Capital Market.”
The company confirmed in its July 11th press release that,
“Following the share consolidation, every 25 issued and outstanding common shares of the Company will be automatically combined and converted into one issued and outstanding common share. Where the share consolidation results in a fractional share, the number of new common shares issued will be rounded to the nearest whole share (with one half being rounded upward). No fractional shares will be issued.”
Minimum bid prices should be monitored by investors always.
Sphere 3D Stays Liquid Despite Reverse Stock Split
We wrote about Sphere last month in Sphere 3D Explodes 58% on 60 million shares traded. Sphere is a company we have followed for many years, but continues to disappoint long-term shareholders. It is amazing to think that, given the 1-for-25 reverse stock split the company once traded for more than $250 per share. With just 4.17 million shares outstanding, huge volume days will likely subside.
Sphere has proven it can make huge moves higher on limited volume. Due to, the company’s limited number of shares outstanding, moves higher or lower may be magnified. Certainly, this was the case today as nearly 25% of the total shares outstanding exchanged hands.
Sphere 3D announced this morning that its HVE ConneXions was awarded a contract with the University of North Alabama. Sphere and UNA will work to deploy next-generation desktop virtualization solutions. Remember that Sphere delivers virtualization and data management solutions via Hybrid Cloud, Cloud and on-premises implementations.
Long-time Members Stick with Sphere 3D
Three long-time members, one of which is a past Stock Challenge Champ selected Sphere 3D for July’s Stock Challenge.
Pinnacle member ‘EmperorJacob‘ selected Sphere and Mogo Finance, a Canadian-based Fintech deal we last wrote about in Mogo Finance Leading Canada’s Mobile Cashless Society.
Mr. Emperor’s return jumped 32.33% Thursday alone after Sphere’s move. One of our longest time competitors, ‘mountaineer78‘ also has Sphere for July and saw his return jump 30.63%. Finally, ‘donvitodonvito1‘ selected Sphere as well and saw his return improve by 30.49% on the day. Sadly none of these Challengers even cracked the Top 20. Everyone is currently chasing ‘glohuis‘ and his 21.13% return.