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Alliance Resource Partners LP Message Board

  • wareham2620 wareham2620 Oct 9, 2010 8:55 AM Flag

    Split ?

    Could a split be on the way ?

    I know what people say ,"two nickels are still a dime" .

    But sometimes the dividends stay the same on each share.Also, the PPS heads back up after the split.That's why I hope we see a split.

    So if you like nickels or dimes, good luck to all .

    http://finance.yahoo.com/q/hp?s=ARLP&a=00&b=17&c=2004&d=10&e=9&f=2005&g=m

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    • My 2 cents worth.........

      A split is indeed nothing. However......it should marginally increase demand from small investors who may not otherwise take a position in the company.

      Many small investors (I consider myself one of them)hesitate to buy 100 shares of an $80 stock but might if it were only $40.

      I know,I know, they could buy 50 shares of the higher priced issues but still it doesn't feel the same, it feels like less of a commitment.

      My opinion is that a split would help but certainly other factors will affect the actual price behavior.

      • 1 Reply to hal49090
      • Feel the same??? Feelings should be left out of any market decision. When I started ages ago - I bought 5 shares of this, then upped to 25, later 50, hundreds so on... as my profits grew. I went by percent which is the only way to look at things. I was in small caps that grew and my positions were up to 80 percent gains often.

        Point was I was a super small fry and started with what I had - as it grew I was able to buy more of a position but having read up greatly (from others reading list of books) I knew the percent was what matter not the share amount.

        The ONE good thing about a possible (and to me pointless to question what if) split is that it might make the stock price less volatile - but with the computer trading systems these days most likely not.

    • Many times after a stock split the pps creeps up. It is a psychological barrier when a stock is high priced.

      Citigroup is doing a reverse split of 10 to 1. And a penna share dividend after the split. No change in value and the dividend is only a penny, but the price will creep up some because of that action.

      Something to watch with "C". Cheers.

    • Thanking you for your answer as to a split.

      Around the time I first asked about a split, the PPS was bouncing back and forth from the high $50"s and $60's.So I thought if we had a split the PPS might start heading back up and pass the $30's or better.At this point the PPS has gotten passed the $60's without a split.

      Also,yes I DID think the distribution might have stayed the same on each of the shares after a split.The CF of $14.+ per share, to my understand would have been able to do it.However,you and everyone else state it would never happen.That's fine .But, I stated what I thought and there was no need for anyone to go off over it.

      I still think it may split .As it's around the same PPS as it was in 2005, the last time it split.

      So, I hope that covers, why I was so "obsessed" over it.

      Thanks again,and have a nice day.

    • Please show the rest of us where this GIFT has occured! What stock doubled its dividend with a split?

    • wareham2620

      Forgive me if I sounded harsh with my first post - I just get tired of what if's and would rather deal with what is... at any rate here is some information.


      The stock split has no bearing on any increase or decrease of either dividend or distributions (MLP in this case - ARLP)... if by chance the stock PPS goes up after a split there are factors outside of the split that causes this - momentum traders, favorable sector, favorable fundamentals, so on... if it goes down (as happens) it is the reverse of many factors... Today's "institutional" traders trade often without concern for fundamentals - ie computer models often driving price up - then dump and they rotate to another stock or sector (often news driven).

      A split if it occurs at all is often given to allow people the illusion that they can get into the stock (ie lower price if regular split) but all is equalized.

      It CAN add liquidity (see below).

      More shares means larger positions can be taken by institutions.. without jerking the pps around (although most do not care these days)...hence the volatile drops and gains often intraday.

      When I started out long ago I often started with five shares (YES five shares) in pot for example - it all adds up - remember it is the percent gained (or lost) not the dollar amount that counts. Meaning although some think they can buy in if pps lower due to a split, it really does not matter if one understands the math by percent rather then share amount.


      When a company decides to issue a stock split (or stock dividend), a couple of possibilities could occur concerning what would happen to an upcoming cash dividend. The most important factors are the time the stock split happens and the time of the cash dividend's record date. Typically, a cash dividend will not be issued to new shares that were created from a stock split if the split date occurs after the dividend's date of record. This is similar to how an investor does not receive dividends for stocks that he purchased after the dividend's record date.

      • 1 Reply to sherryazure
      • For example, suppose XYZ Corp. has set aside $2.5 million plans to pay out a $2.50 dividend on December 8 to all of its shareholders on record as of December 1 where there are one million shares outstanding. Furthermore, the stock is planning to have a two-for-one stock split on December 6. Since the split happens five days after the record date, all those newly created shares will not be eligible for the dividend on December 8.

        As for situations when the stock split occurs before a dividend record date, the dividend will for the most part be paid out for the newly created shares as well. Except that the dividend likely will be split compared to previous time periods. This is due to the fact that companies want to maintain the amount of dividends issued. For example, suppose that ABC Corp has originally set aside $2.5 million plans to pay out its quarterly $2.50 dividend on December 8 to all of its shareholders on record as of December 1 that own the one million shares outstanding. Since the board of directors authorized a stock split on November 31, the company will be taking the $2.5 million and then issuing a $1.25 dividend to the holders of its two million shares outstanding.

        Typically, to avoid complication, a company will not have a dividends issue and a stock split around the same time. Effectively though, in situations where a dividend and a split occur, the shareholders who hold throughout this period will be paid the same amount in total dividends whether there was a split or no

    • And forgot to say - the dividend in this case it is not a dividend ie a distribution - is fractionated by the amount of the split... either way. (split or reverse split) so there is not an advantage.

    • The pps does not always head back up (I was in many a stock that split and shares headed south) this is not sound reasoning. I always find it useless to speculate on what "if's".... what is the point?

    • As well with any stock the dividend or in this case "unit"... will not double (or triple depends on split) unless the dividend goes up doubly! I suggest you not look at yahoo for any answers (and esp quotes a mess and out of date sometimes) but stockcharts (dot) com has a nice how to online school).

      Another this stock has run up considerably (and since I as well trade - know full well that being in the news creates lots of attention beside the fundamentals - and traders do NOT care about fundamentals (I do as I hold two positions - one trading other hold so on).

      So reason for major moves sometimes and if cc is not good I expect some big move down, lol...

    • PPS does not always head back up after a stock split (out of thousands do your research) eventually it all comes down to fundamentals and market overview.

      After a split, reverse or otherwise all is adjusted accordingly.

      Best Sherry

      But why I am always curious on these boards is a speculative play being thought about as opposed to fundamentals and upcoming CC? That is concrete and real.

    • "sometimes the dividends stay the same on each share"

      How could that be the case? That would mean they would have to double their payouts. They don't have enough cash flow for that. No point being unrealistic.

 
ARLP
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