I guess you know you're in a bear market when even household names are starting to discuss reverse stock splits.
Drugstore chain Rite Aid
Stockholders will have to approve the plan for a reverse split, and then the company will decide on the appropriate ratio. If the stock hovers near the buck mark, Rite Aid may go for a conservative 1-for-10 split. If it heads lower, going with a 1-for-15 or 1-for-20 reverse will make more sense.
No one likes reverse splits. If an investor with 1000 shares of Rite Aid at $0.78 wakes up with just 100 shares at $7.80 after a 1-for-10 split, it doesn't change the fundamentals. One can argue that it's even a silly delisting rule on the Big Board. However, regional amusement park operator Six Flags
Few established companies have gone through reverse stock splits lately. Sun Microsystems
Expect that number to climb. Companies like Six Flags, Rite Aid, and satellite radio titan Sirius XM Radio
Until then, with even more iconic companies threatening to belly flop into the sub-buck wading pool, get ready for the onslaught of reverse stock split announcements if the market doesn't turn around.
It may not be right, but in a few months it may be Rite Aid.
More news than static on Sirius XM:
XM Satellite Radio is a former Rule Breakers stock pick. A free 30-day subscription will shed some light on why the satellite radio company made the cut before being cut.
Longtime Fool contributor Rick Munarriz subscribes to both XM and Sirius. He does not own shares in any of the companies in this story, save for Six Flags. He is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early. The Fool has a disclosure policy.