Coldwater Creek Inc. Message Board
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Split announcement @ $32.50+
If the market continues to run as it has lately and the numbers for Coldwater are good in November, I expect another 3 for 2 stock split to be announced. After that the stock runs up to $36.+.
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They are not going to split this time at 32.50--going all the way to 38 before they do--then it will be 2/1
- 1 Reply to peachcreeklady1
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I agree.
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do we hold or sell just befor the split?
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please explain to me the significance of a stock split, other than to just dilute the shares and create volatility.
- 2 Replies to phaldo
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The significance of a split is that it generally makes the shareholder base larger. Usually splits occur in companies with growth. It keeps the retail price of the stock at a level for more investors. A good example is Google trading above $400, not a lot of small retail investors buying in. Volitility is generally less after a split due to a wider base of investors. Not to say that there is no volitility due to some shares being sold off by previous investors cashing out. This is a short term situation. I use the term investors as opposed to traders who create more volitility. In the case of Coldwater, I believe they want to keep the retail level of the stock at a good point to keep new investors interested.
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It creates liquidity more than volatility. This helps attract institutional investors. It also shows management's confidence in future business operation. CWTR normally does a 3 for 2 when it goes past 30.
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Watch for more analysts to begin coverage of Coldwater with a buy or strong buy recommendations.
Patience is a virtue. ...October.....November...then BAM!
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