It probably would not have much of an effect as long as FB was trading flat. This is based on recent splits especially GOOG and GOOGL. I think you could also hang onto your shares and redistribute it between class A and class C after the split. In the grand scheme of things, I don't think the split will matter too much.
This is a stock board and you are posting garbage. It is too bad you see other people as garbage. Other people don't want to read how angry and hateful you are because you have decided that people have no worth. Now, that sucks. The people here are trying to follow stocks. Go somewhere else where you can commiserate with other people who are full of hate like yourself.
Do you think it is cool to hate? Why are you so angry? Why do you post your hatred on a stock board?
I really do not understand the statement you are trying to make. My reply just is saying a split and dividend are close to the same.
There will actually be an additional 5.7 billion shares and if you add that to 2.85 billion outstanding then that is 8.55 billion shares between both classes of stock. Good bad or otherwise..........................it is what it is.
It is a stock dividend. Most stock dividends are a small fractional share so this is different. In many ways this is very similar to a split. The exception in this case is that a new class of shares are being created. Option treatment is different.
...............but for the most part this is similar to a split. The shares will triple like a stock split, the share price will be 1/3 the pre-split, and like GOOG/GOOGL news will call it a split.
unless you are doing something like immediately selling your class C shares or buying options prior to the split, you wont be able to tell the difference between the split and a stock dividend.
I don't the split will have any adverse affect on the stock. There are actually 2.86 billion (Q1 2016 10K) shares outstanding so there will be 8.58 billion after the split. An example is NFLX which was 90 after a 7 for 1 split almost a year ago and now is 94.45.
The split really is a non-factor either way. More stock means people will just have more shares. It goes the same way for people looking for a big gain from the split. Recent history shows splits are basically meaningless and people are looking for free money.
FB stock will do well if FB performs well and the split will do nothing either way for the share price.
The split won't do much. Look at AAPL and NFLX who recently had 7 for 1 splits. Their splits were non-events. FB will perform based on how well they grow their earnings and not on the split. 120 is not unaffordable for average investor
I'm doing well. Its been a busy last few months. I hope you are doing well.
You cant compare a stock by its price. If you want to make a comparison, compare the caps. FB is worth 327 billion and LNKD is worth 25.5 billion. Now which is cheaper 327 or 25.5.....LNKD is 1/12 FB Caps are derived by multiplying the pps by share price.
Furthmore, growth stocks are not priced on a value basis or a fairness basis. FB is valued on what the market believes the future value or growth is worth now.
Recent history shows that splits have not done much for stocks. Look at GOOG/GOOGL, NFLX, and AAPL. All of the aforementioned were flat 6 months after to their splits. The prices pps wasbrought way down from 7:1 splits for NFLX and AAPL. That should have soured more buying but it doesn't. The share price of FB will just be based on how it performs not on the split. If it performs well like it has, the stock will do well. The split will have no affect on the stock.
Where are you getting your numbers? 58 times what and 35 times what? Are you talking about PE?
LNKD has no PE and FB has a PE of around 70.
Beyond all that, MSFT saw synergies by purchasing LNKD and the transaction has no link to the value of FB,,,,,,,no pun intended.
FB value is determined by its growth and growth alone and the value the market puts on FB. It has absolutely nothing to do with the purchase price of LNKD.
From what I understand, the dividend should not be taxable until it is sold. The dividend/split is creating a lot of confusion as to when it will happen, how it will occur, and things like tax consequences of the event. I think in general the split/dividend is going to be a wash but it does create illusions of buying and capturing the dividend and all other types of scenarios which I think people should ignore and just base the stock on its performance and not the split.
The shares will not be similar to BRK A or BRK B shares except they will be listed seperately. BRKb shares were an offering very much like a secondary. BRKB shares represented 1/30th of a normal share where as FB C shares will represent the same ownership of the company but the difference will be the voting rights. This should structurally similar to the GOOG and GOOGL split/dividend where the prices are very similar to each other.
The way FB split/dividend is being structured initially has to have the price the same. This is not a secondary it is a stock dividend and it has been called both a split and dividend. The creation of a new class of shares means that it has to follow something very similar to GOOG and GOOGl. Other than the numbers this is exactly what is happening. Even without the actually share holder meeting, this has to follow rules and the market will determine the price of the shares based on how much more they believe that the stock with voting rights is worth than those without. Based on the current price and the history of Google's split/dividend, it looks like the difference should maybe be a couple of bucks.
The one part that you have to understand is that even with a limited history there is no way for FB to set a price on this. (They would have to offer it to the market to set a price). So all shares will be roughly 1/3 of the price of FB just prior to the split.
With GOOG and GOOGL as history, the split will not do much to the stock either before of after the split/dividend. Stocks like AAPL and NFLX had appreciation or depreciation of their price due to the split. The split will probably do nothing to the price of the stock but that is not really important because the bottom line is that FB can do well based on how they perform. I would not look at the split as an event that will do much for the stock but if you have a bullish perspective I would look for the stock to continue to do well.
This will be very much like Google's stock split/dividend. For every contract you have, you will receive one contract of a non-standard deliverable. After the split/dividend, if you excercised your options (non-standard deliverables) you would receive one class A and 2 class C shares. All three shares would add together to determine whether your option is itm or otm.
These options may have less demand after the split if they are otm because people will most likely buy the new options they understand. If your option is itm, then there will be intrinsic worth so the option will be priced to reflect that.
GOOG after its split was 568 . 2 years and 2 months later it is 704. That is about a 24% gain or about a10% annualized gain. Okay gain? yeah, I guess but nothing to write home about. This fairly small increase is due to Google's performance not the split. If you look six month before and after GOOG's split, it was quite flat. The split did absolutely nothing for GOOG
What will it do for FB?........Most likely not much. FB has been doing well based on its performance and the stock will continue to do well if FB continues to perform.
Stock splits are not what they used to be.
Its basically a flag without any coils.
The CH only has a depth of about $8.00 and it has broken well above the rim of the cup before it formed the handle. This is really just a basic breakout with a retrace. Also if we are looking at a Bill O'neal classical pattern we could expect a rise of maybe half the cup size which would around $4.00 and it already went well past that before it retraced to make the handle. A deep bowl means a large breakout.
Besides that most of these patterns are at best 50% and you used to be able to hang your hat on certain patterns such as the C&H but it really is not the case now. You can look at the longer term trend and that is a better indicator.
With that said, FB is going up quite nicely and will continue to but it is no longer a momentum stock.
Its only a little over a $100 stock and $100 is the new normal so anyone who wants solme can get it.
If we look at past splits like GOOG, AAPL, and NFLX, there was no rise 6 months before or after the split. Everything has been performance based and the same goes for FB. FB will do well if it performs well and the split will basically be a non factor.