FCX will probably carry on PD's tradition of splitting their company stock. PD did it a few times and each time I made a lot of money as the stock price went up after the split. It is a great compounding factor. No denying it.
I will say one thing. I have spoken to ppl who are looking at stocks to buy for "investment" (whatever that means) and they will see a $100 stock and say "oh thats too expensive" and feel more comfortable with a $5 stock. When I try to explain P/E, etc., they get bleary eyed.
Stock splits do have a tendency to get retail investors into a stock, but in the case of FCX, 92% of the holdings are institutional holdings.
I agree w/ eazzy_to_see - we "might" see a stock split, FCX will "probaby" carry on the traditon, and it's not his "hunch". We might also see FCX eclipse Google's market cap by 2Q08, get into agriculture, and begin mining on the moon. If those happen, I'm on record! BTW, these are not my hunches - one is a gut feeling and two are aspirational beliefs.
If we do see a stock split, kudos to PD for being powerful enough to get acquired then run the show.
I just wish that Berkshire Hathaway had one powerful portfolio company who could show the "stock split" light to the almighty CEO & parent company - that would be cool.
FTR, I support a stock split but don't think it matters that much given the % of shares owned by institutions. Actually, I shouldn't even bother reading posts on the subject b/c every thread has the same meaningless opinions, banter, and points. Shame on me for wasting my time and perpetuating by posting.
This is no hunch. PD had a tradition of splits and I believe that FCX management will commit to that tradition. Splits are shareholder friendly and puts them in a great position (twice the number of shares) once the stock price moves up again. That's the compounding affect. Splits make shareholders wealthy. I can attest to that.