As you can tell from today's action, the street likes stock splits. It's considered a bullish sign. Presumably, when the stock splits and the price is adjusted downward, the lower price allows, in theory, more investors to buy more stock. However, I've never seen a reverse split seen as a bearish sign, so maybe the bullishness is just that there's NEWS and it's not about depressed sales or earnings.
Anyway, it seems that usually after the early euphoria, the stock flattens out as it approaches the split date. The day of the split, I've seen a market drop presumably since some investors see the split adjusted, lower price and panic thinking the stock is tanking. Soon after the split, the stock usually begins go up.
The split should make reaching my prediction (my hope) of $90, split adjusted $60, easier.
Of course I reserve the right to be wrong.
You don't like ocean swimming???
Al |
