California Coastal Proposes Stock Splits

In a cost-cutting measure, California Coastal Communities Inc. said Monday it proposed a 1-for-100 reverse stock split, to be immediately followed by a 100-for-1 forward stock split.

The move would cash-out about 11,200 so-called odd-lot shareholders, who each hold less than 100 shares in the Irvine home builder. Such shareholders hold about 235,000 shares, or 2.2% of the company.

The splits will save California Coastal about $130,000 a year in mailings and other shareholder-related costs, said Raymond J. Pacini, president and chief executive. If approved by stockholders on May 18, the splits would occur following the market close on June 18.