3.5 Billion shares...

I did not receive much response to the reverse split idea and I understand that reverse splits are not viewed favorably by the investing community. This is true for most companies, reason being that most companies considering a reverse split are trying to get the share price up to meet market listing requirements. A company with a rapidly falling share price may need this tactic but this doesn't apply to Lynas...

IMO there are just too many shares out there. I know full well it is a psychological thing but many potential investors look at 3.5b as a lot of shares...

A reverse split of 1-10 would give a (current) stock price of $.80 and the number of shares would drop to 350m. A more aggressive split would be 1-100 and give a share price of ~$8/share with only 35m shares outstanding... Of course those investors used to owning a million shares would only own 10k shares but to me at least, the 35m-$8/share scenario better profiles a company experiences growth... Also it would give Lynas the visibility and attention it deserves...

I am not a CEO of any company so I do not know all of the details surrounding a reverse split but I am sure it is something Amanda has considered. Yes, reverse splits often fail to accomplish what they intended but most of those cases involve failing companies. Lynas is a different case. It is growing and has about as secure of a product that can be produced. The earnings are growing, we are cash flow positive and the external factors (ie RE prices) look excellent...

There have been some successful reverse splits, Priceline.com split 1 -6 when it was $.60/share and now trades close to $2k/share. Likewise Laboratory Corp. of America (NYSE:LH) did a 1-for-10 reverse split after having seen its stock stuck in single digits for more than five years. Within two years of the reverse split, LabCorp had not only recovered, but it had also done two separate 2-for-1 regular splits, and the stock now trades for six times its split-adjusted price immediately after the reverse split...

At the end of the day, reverse splits are generally a bad idea as the company needing the benefits of a split is typically on the ropes to begin with and the split is being used as a lifeline... Lynas on the other hand is a growing large company that is on solid footing and just may benefit from both the split and the inevitable news and analysis of that news following the split.

IMO 3.5b share is scary, 350m or 35m is a much more manageable number...