<<<NRGP was up 1.7% on a generally down day on the street>>
Where are you looking that I am not looking? I am showing NRGP down $1.16 for today?
I kind of favor splits, mainly going back to the DELL shares I held through numerous splits just to see the share price rise again to previous levels. It lets smaller players get in and feel good about the price, even if valuations can sometimes get higher than they might have otherwise.
Here is what was said regarding splitting the units:
“Our common units have more than tripled in value since our initial public offering, and we believe this unit split will result in improved trading liquidity and more access to a broad group of investors,” Inergy CEO John Sherman said in a written statement.
sorry...as I wrote that right about 4:00pm I swear Yahoo was showing NRGP up. Clearly that was wrong. Whether it was me (most likely) or Yahoo (can't rule that out either)...doesn't make any difference. NRGP closed down 1.56%, not so different than the AMZ index -2.08%.
I think that Splits are a feel-good move to gain some attraction. Yes, Dell had 7 splits between '92 and '99, and the price kept rebounding. But that was also in the heyday of the dot-com, and Dell was a very successful business. I am not convinced that the total rise in the value of an investment in Dell during that period would have been any lower if there were not any splits than occurred with the splits. Nothing real changes with a split (same total earnings, same business future, same invested capital, same risks)...only the # of outstanding shares changes.
abter, I would agree with you in most cases, but not NRGP. The float is too small to accommodate even modest blocs of stock, as I learned the hard way recently, when I had to break my sale into smaller lots. I never use market orders, so there was no match until I broke the bloc into smaller orders of 500 shares each over two days. A split should help this situation.