Risk is still high, but the reward for investors could be even higher.
Virgin Galactic announced a 1-for-20 reverse stock split last week. Its stock has fallen 31% since.
Virgin Galactic confirmed last week that it would reverse split its stock 1-for-20. The reverse split has taken effect, and Virgin Galactic began trading at its new and improved stock price this morning.
The unprofitable space tourism company did a reverse stock split to boost the share price. But that won't change its poor fundamentals.
Virgin Galactic (NYSE: SPCE ) stock is in the spotlight today as the company's 1-for-20 reverse split goes into effect. The firm, which specializes in carrying out commercial space flights, is executing the split in order to comply with the New York Stock Exchange's minimum bid requirement.
The Virgin Galactic (NYSE: SPCE) stock price continued its remarkable sell-off this month as it crashed to its all-time low. It dropped to a low of $0.6850 on Friday, bringing the year-to-date losses to 72%.
On June 1, SpaceX's highest-profile space tourism mission was abruptly canceled. On June 8, Virgin Galactic flew what may be its final space tourism flight.
Virgin Galactic has flown the last flight with its Unity spacecraft. The company is burning through cash as it looks to build the Delta generation of spacecraft.
It'll be two years before Virgin Galactic can prove its strategy right.
VSS Unity was a good suborbital spaceship. But Virgin Galactic needs a great suborbital spaceship.
Two months ago, Virgin Galactic warned shareholders it might reverse split its shares. Last night, the company did just that, announcing a 1-for-20 reverse share split.
Virgin Galactic (NYSE: SPCE ) stock is sliding lower on Thursday after the space exploration company announced plans for a reverse stock split. According to Virgin Galactic, this reverse stock split is set to take place after markets close on Friday.