report the pump and dump spammer
BIIB are scheduled to report earnings Oct 22nd. Consensus Estimate is $3.22, but BIIB has a history of blow out earnings, which could drive the stock over 400. It will start moving in a week or two in anticipation of the earnings.
Let us wait and see what the Board decide in December. A split helps those who do not sell. Once it splits, it will go up again since 5 to 6 drugs are lined for huge sale, BG!2 being the blockbuster. Because people do not believe in split, they have at $100 pps. I know a number of them. Sometimes history repeats and it is about to repeat again..
Report the pump and dump spammer
I like a split for BIIB, GILD, REGN, and every 100+ stock.
With more shrs, it is easier to hedge your position with options.
If you have 100 BIIB, and it runs up, and you want to sell a covered call, you sell 1 contract. Or, if you want to protect to the downside, you buy 1 put.
If it's 100, the contracts are priced better (bcse of more liquidity), and your cost to hedge becomes easier, if you have 200 BIIB or 600 after a split, you might just hedge 200, or 400, and it is just harder to do that with hi priced stocks.
last, GILD has had a history of splitting at 80 or 90, but they also have let the price run. With AAPL, GOOG, PCLN, etc, etc having such hi stock prices, I am starting to think these guys won't split.
But, for the option liquidity, I would like it.
The general principals apply to any company, including BIIB. In my opinion, the only way that the split has any relevance for an investor is that the stock may rise near term after a split and a day or swing trader may benefit - but this is reconciled quickly and does not have an effect long term.
As far as BIIB goes, they can taught yet one more split in their history, but it doesn't really mean anything.
You present some intelligent arguments in general but what about specifically
as it apply to Biogen Idec history of multiple splits? Thanks in advance
flag the pump and dump spammer
They wouldn't. There are pros and cons of a split. If you split, you are likely to attract more small investors who buy and sell not thousands, or even hundreds, of shares. At the end of the day, the buying and selling of these people doesn't have any real effect on the stock. Stocks with lower prices also may attract more short term traders who put up the capital to buy the stock and then sell it quickly (within a few days or weeks, swing trading) to reap a quick gain. Some companies like to try and keep day and swing trading of their stock under control and a higher price can help in this regard.
A lower price can attract new investors right after a split, but in the end I don't think it really matters because it is the earnings/company valuation that drives the price. More shares, less dollar appreciation per share for any increase in perceived value. Less shares, more dollar appreciation for any increase in perceived value. Is there a short term effect, maybe. Long term, in my opinion no. However, some companies like to split frequently so I am sure their are opposing points of view on this.
Never happen. This is going to $400. Hemophilia is doing very well and so is MS franchise. Add in Plegridy this year and daclizamab early next year and this will soar!!!