Satcon Is #1 And Having A Reverse Stock Split
The chants of “we’re #1” probably won’t last long around the halls of Satcon (SATC :NASDAQ) as the inverter manufacturer announced today its board has approved an 8-1 reverse stock split.
In a separate announcement, IMS Research issued a press release anointing the Boston-based company as the number one large-scale solar inverter supplier in North America. But the accolade was trumped by the announcement proclaiming that Satcon’s Board of Directors approving the reverse stock split, a move that should save the company from NASDAQ delisting proceedings in the near future.
The reverse split will reduce the number of outstanding shares from 144.2 million to approximately 18 million. In addition, the company will reduce the number of authorized shares of its common stock to 37.5 million.
Will this move provide Satcon with enough time to find a buyer or will it help springboard them back to financial solvency? We think they are shooting for the former and will ultimately be excited, and surprised, if the latter happens. The solar industry has not been
Needless to say the company’s Q2 2012 financial results are going to be highly scrutinized.
Being number one isn’t helping Satcon today as shares were down 2.48 percent in afternoon trading.