July 14, 2011 | In: Financial

IRE (Bank of Ireland) Reverse Split Soon

IRE (NYSE:IRE) has dropped yesterday below the $1 level, and is currently trading at $0.91. As we already know, NYSE (as well as NASDAQ) rules require that the stock maintains a price above $1 at all time, and if it drops below the $1 level, then it has 1 month to climb to at least $1, or else it’s booted out of the market (after a warning period).

This means that Bank of Ireland’s executives will most likely go for a reverse split. I think they’ll probably go for either a 1:5 (same as AIB) or 1:10. If they go with a 1:10 reverse split, then the following will happen:

– The number of shares will drop below the billion share level, and it will become only 320 million shares.
– The price of the stock will be around $9.11 (if it doesn’t go down further between now and the reverse split).
– The stock will continue to decline, because reverse splits are bad and are looked upon unfavorably by the investors.

I think both AIB and IRE are now the playgrounds of “shorters” (those who short stocks). Both of them have no future, and the serious problems in Europe are now emerging to the surface (forget about Greece and Portugal, there’s now Italy and Spain). I expect another reverse split for AIB probably in 2 months from now, I think this time they will go with a 1:10 just so they can last until the end of the year before the next reverse split.

4 Responses to IRE (Bank of Ireland) Reverse Split Soon



October 16th, 2011 at 8:04 am

It looks like you were right, 1:10 reverse split transaction for IRE scheduled for tomorrow in my trading account. Can’t find any news on it though.


Fadi El-Eter

October 18th, 2011 at 8:54 am

Yup, I just noticed. The stock is down 17% on the first trading day after the reverse split. I think IRE’s fate is very similar to AIB’s (it will either be delisted or it will delist itself before the next reverse split).


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November 18th, 2011 at 10:53 am

[…] have correctly predicted that IRE will reverse split three months before it did (by the way, I think that for IRE another reverse split will happen or […]


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December 20th, 2011 at 5:18 pm

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