I read once that stocks with a pending stock split were good investments. From the little I have researched it, it seems basically true, assuming you sell at the right time. LWAY seems to be a low volume stock however. I don't know if the theory will hold true. The news of the split is what brought me here. <BR>
On a side note: I have been stumbling on to other "milk" based products in the last year. (BRVO.OB) is one of them. Maybe milk is the next big thing?
A split usually means that a company's stock price is going up and in order to keep a stock affordable(cheap to buy in lots of 100)they will split the stock. A split is thus associated with good things. In this case however, this is not true... in fact the stock has gone the wrong way for the past 2 years. This is a great company that will reward shareholders for holding but this split is the product of execs trying to create interest in the stock.
I like this company but this stock split is meaningless and a little embarassing.
WFMI chart shows a steady climb up to the split last year, then a decline. Looks like the theory worked on that stock. The average volume is a lot higher though. LWAY may not be a good stock to test this theory on.
"have read recently that bravo.ob had filed chapter11..... "
Not sure "how recent" you are referring. I'm just pointing out that I have been noticing "milk" based companies lately. BRVO.OB is sponsoring a top level NHRA race team and I know that takes BIG bucks to do. It would seem from the BRVO.OB web site that things are getting very active. My thoughts were maybe LWAY is looking to make themselves attractive to a potential buyer. This is a low volume stock from what I have seen so far. Based on the price, I'm not sure what good a stock split would do. There must be a reason, right?