Diamond company and perennial net/net Lazare Kaplan International (LKI) recently issued its latest proxy. Like most proxies, the items to be voted on at the November 8th annual shareholders meeting are fairly routine. That is, with the exception of the third item.

There’s nothing strange about a reverse stock split, it happens fairly often. But what Lazare Kaplan is proposing is a bit different. The company wishes to initiate a 1 for 101 reverse split, buy out any shareholders with less than 1 share post split, followed by an immediate 101 for 1 forward split. Say what?

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