At the last split, the stovk price was $100++. If it is to split again, it has to rise more the 25%. Split of shares does not help shasrholders as if it splits 2 for 1, the divey will do the same.
The fundamentals for P&G to begin to consider a stock split are;
1) Earnings per share must double from the time of the last split.
2) The share price must remain above 100 for a stable period of time
As others have said the split only serves one purpose.....to make it easier for small investors to purchase shares. It adds no value. In fact, I have seen the share price historically fall back for several months following a split. Then it regains it's footing and resumes the slow but steady growth typical for this stock. Been a share holder since the early 70's and seen many splits.
juan: it takes time for the extra shares work their way throgh the market. Once the shares are in stable hands (long term) and sellers of the extra shares are done, then a position will move up. This takes time.
this stock may have more to go up but it's not due to "split rumors." splits do absolutely NOTHING to increase the value of a stock. it's only nitwits and morons who care about that. they don't know what they are talking about. don't take my word.
Understand that when a stock splits, the psychological barrier to purchase for some buyers is now gone. They feel that they can afford 100 shares of a $33 stock, even thought they could just as easily pay the same amount for 50 shares of a $66 stock. It is this perception that often causes a stocks price to increase after a split.
Agreed. Splits attract an inferior class of investor. We live in an age where anyone can buy odd lots and fractional shares for $5 commission. Except in extreme cases, splits serve no useful purpose, and it would be a mistake for PG to do one, in my opinion. Why would management want to attract a bunch of idiots to their stock?
I agree, actual value is not increased at a split, but it is the nitwits that cause the intrinsic value to rise for a short time around the time of a pending split. A lot of recent value increase is also caused by the results announced last week and the forward looking statements by P&G regarding business opportunities. However based on 4Q GDP numbers the market should be dropping today, but for some reason does not..
Sentiment: Strong Buy