You still have the same dollar amount (if the stock closes at the split-adjusted same level), just twice as many shares. Some may misread that this stock has lost half its value today and drive the price down with panic selling.
Could be a buying opportunity for the rest of us./ OT: Speaking of a buying opportunity, you may want to take a look at CROX on Yahoo Finance today. I am up over 200% trading in and out, back in today a6 $46.00, started at $26.00 before the split./ Always do your own due diligence, of course./ The Huss
I also remember flipper, and princessalouie sounds familar too. And I don't know how I left out PZN! Maybe I was just trying to block out the bad memory of those traumatic days (and now looking back and wishing I had bought more shares when the price REALLY tanked; however, the whole good money after bad/sunk cost told me not to).
We've definitely had quite the roller coaster ride with PZN/CCA/CXW, haven't we? But anyway, that was then and this is now. Like you said tt99, "it's onward and upward from here."
General - you do go way back.....
Your reference to MK triggered a few memories for me...
MK became newMK, flipper, princessalouie (was she also PKNmom), and more. We had quite a good group back in the days!
Wonder where they are now? I'd check my old notes (I'm a "string saver") but the memories are too sad from those CCA/PZN debacle days.
Ah well, you can't go back - it's onward and upward from here.
BTW - I think we closed those gaps, so can you turn on the up-button again, General.
No, the split actually took effect on Friday AFTER the market had closed for the day. CXW would have to have a fixed price to then determine how much the new shares would cost after the 2 for 1 split as they couldn't split a share if the price of said share was in fluctuation (which it would be if the stock was being actively traded).
The market would then show the new price going into the trading day today.
You'll see the closing price on Friday of 65.98 here: http://finance.yahoo.com/q/hp?s=CXW&a=06&b=1&c=2007&d=06&e=9&f=2007&g=d
That price was then adjusted to take the 2 for 1 split into consideration, which meant the adjusted close was 32.99. That can be seen here http://finance.yahoo.com/q?s=cxw+ next to Prev Close.
For more info on stock splits, see http://www.investopedia.com/articles/01/072501.asp .
Anyway, this is our second split in less than a year (there was a 3 for 2 split on September 14, 2006 - see http://finance.yahoo.com/q/bc?s=CXW&t=2y ). After suffering through the reverse 1 for 10 split way back in the day (May, 18, 2001), we're slowly making up our lost ground.
Fergie is doing a great job IMO. Debt has been greatly reduced, and we haven't made any mistakes recently like installing porcelain toilets! As bad as Doc was, he did have some vision and perhaps some of his expansion plans and buildings prisons on spec are now coming to bear fruit.
If things continue the way they have, I think we may actually see a dividend declared within the next 2-3 years. However, even if a dividend isn't declared I wouldn't worry about it if the stock price continues going up, debt keeps coming down, and most importantly, profits continue to grow.
Yes, I'm one of the "old timers" who go back to Doc's days....
the "good days", the "not so good days", and now "we seem to be finally getting it right days".
BTW, General Jack has been around since the first two-cell shed, with wooden bars on the windows.
Just kidding, General - it only seems that long ago!
If anyone sold this stock in panic today, because they thought it had lost half of it's value, they should NOT be trading in a $60plus stock.
I defer to General Jack, but he may feel this is just catching up to recent "gaps up".
A lot of states are looking for beds with their current overloading.
CCA has availability.
I'm sure you're right, but I wouldn't be upset if some idiots sold today thinking that the share price was truly half of what it was on Friday since it would just mean a buying opportunity for the rest of us.
I too have a strategy that involves riding the highs and lows. I track my returns pretty carefully. I'm curious: your 200% return - over what period? I know you said you started trading CROX pre split, but how long ago? I'm running just a little over 200% per year trading similarly. Interested in comparing - is yours bigger than mine?!
CROX OT: My best recall is that August of last year I bought CROX, at about the Initial Public Offering Price of a few months earlier./ I am better at tracking longer term mutual funds trends, holding long term trades in stocks for fun. Othes have made over 300% in CROX, so there is no false modesty here with my 200%. /I trade out when a stock hits my Loss/Limit order, which I update periodically if the stock is rising. Occasionally, I trade out, like with CROX after a less than my usual 8% drop, last time at $44.80. If the stock rebounds and the trend looks good, I will jump back in, as I did at $47 today. Because I have a day job for the academic year, I can only due hands-on during vacations when we are not traveling, so basically it is a Stop Loss strategy./ I like THE TRADERS' ALMANAC, for good reading and advice, but did not go away in May this year although I'm getting antsy now./ I would be interested in your superior insights./ The Huss.