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The Buckle, Inc. Message Board

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  • jakesambeau jakesambeau Mar 4, 2010 10:38 AM Flag


    I don't understand, what good is a split? Your equity in the company remains the same, and the div. would probably be halved. The stock is not that expensive that it makes sense to split it. I own ORCL which split 10 years ago at 95, it tanked back to single digits and is only 24 today, still 22 points from it's high so a split is nothing to get excited about.

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    • ARO ANNOUCED SPLIT A MONTH AGO AT $31 IT IS NOW $37+. They have many more shares than BKE and they do not pay a dividend. Plus trade at a higher PE then BKE.

      • 1 Reply to saccos
      • I don't know that a split is the best policy right now, but probably wouldn't be a bad idea. I said recently that a special dividend followed by a 3:2 split would be great for longs because the price would probably drop for a brief period after the split and the reinvested big dividend would pick up a lot more shares in addition to the 50% more shares from the split. Something like that could give you 60% or more new shares. From the looks of things a 3:2 late this year we'd still have a very respectable 1.90$-2.00$ EPS.

        If the dividend tax is hiked way up in 2011 I don't know if a split would be a good idea right now. I doubt management will make any big decisions until we know what Uncle Sam decides to do.

    • Yeah, but Oracle got nailed in the dot-com bubble and had crappy earnings. If you knew more about the stock you'd know that maintaining the dividend or even raising it after a 3:2 split would be easily affordable.

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