Based on the quality of their food, $44 is probably a generous valuation. Based on their ability to profit from selling junk food and the public's total lack of taste, the present price is about right. Don't make the mistake of confusing McDonald's food with real, edible food that can sustain life as we know it.
I haven't been through the doors of a McDonald's in over 45 years,and I don't miss it at all. I made a lot of money on the stock and collected loads of dividends, but that doesn't mean I have to kill myself with their food. If the rest of the world was like me, the stock would be somewhere around 50 cents. Lucky for MCD shareholders, most people have absolutely no idea what good food tastes like. They've been conditioned to eat garbage and like it.
My guess is that the weakness is being caused by anticipation of massive flooding when the spring thaw begins in the coming months. Damage from burst pipes and leaking roofs is minor by comparison. The flooding that I'm concerned about could easily cover whole counties and run into the tens of billions of $$$. Although flood damage is usually back-stopped by the Federal flood insurance program that protects insurance companies from catastrophic losses, my guess is that they still have some exposure. I'm no expert, but that's my guess.
You're getting your split but not the way you probably had in mind. This dog is headed lower. MUCH lower. Based on the most recent earnings, I can see mid-30s this year.
Judging from the way the stock is acting today, it looks more like they're about to CUT the dividend than increase it. There's obviously something seriously wrong with this company. I know, I know.... the whole group has been very weak of late, but CINF has been leading the pack lower. Today, the whole market is rebounding while CINF is down over 2%. I hate to cut and run, but I also hate to own a stock that is dropping like a lead balloon for no apparent reason.
Weather will have more or less the same effect on all airlines in the same geographic area. Whatever that may be, it's only temporary. Use weakness to accumulate JBLU. It's a gift from the heavens.
CAT has near-term problems, but they're not going bankrupt. That doesn't mean the stock can't get hit hard, particularly if export markets tank. I wouldn't want to own it until the dust settles. If you don't want to pay the tax on a big gain, sit tight. Otherwise, I'd sell and stand aside for the time being. CAT has room to move a lot lower, but it's definitely not going bankrupt. Would I go short? NO! Patience will win in the long term.
Every brokerage firm I know of charges exactly the same commission for round lots as they charge for odd lots. The odd lot differential has been gone for many years. I pay $2 per trade regardless of the number of shares or the price of the stock. If you're being charged more for odd lots than round lots, you're using the wrong broker.
As for your second question, here's the data: Aug 13, 1990 2X1, Sep 11, 1991 3X1, Aug 16, 1995 2X1, Mar 1, 1999 2X1, Nov 22, 1999 2X1. I bought in June, 1987 before the first split. (I have to give credit to BusinesWeek Magazine for a feature article that first brought AMGN to my attention.)
I don't eat at McDonald's, so why would I go to Sonic or Wendy's? It's ALL garbage! I won't order anything with ground meat even in a high-end, sit-down restaurant that charges $20 for a burger. There's no way of knowing what went into it; could be my neighbor's cat for all I know. When I want a burger, I buy steak and grind the meat myself. I haven't eaten in a fast-food establishment in at least 50 years.
Just saw that Eagle Asset Management has amassed a 5.12% stake in Acorda. Who are these guys, anyway? From what I can find, they run some mutual funds and do asset management for "high net-worth individuals". The late-day pop came right after that news came out.
Looks like the stock is expecting a big nothing. I like to be out going into earnings. I sold at $50 just minutes before they announced the secondary.... turned out to be a very lucky move. That was a total head-fake for the longs. It was like getting cut off at the knees. That's why I don't trust this management.
The shorts won't get any sympathy from me if there's a full-blown short squeeze. I have nothing against shorting; it's perfectly legal and ethical, but I'm on the other side of the trade. One thing that I've always done before shorting has been to make sure the outstanding short interest was small enough so that I wouldn't get caught in a squeeze if it went against me. The guys at Primecap Group have been loading up on JBLU. It wouldn't surprise me if they went in knowing that there was a big outstanding short position. That's one of the things they look for. As of 10/31 they were long over 7,648,000 JBLU in the Odyssey Funds that they manage for their own clients plus a whole lot more in the funds they manage for Vanguard Group.
I'm impressed with today's strength given the flight cancellations because of the weather. I've given up trying to guess earnings on any company. It is what it is.
I think it was Stephen Leeb who was touting PBR as THE stock to own for the new millennium. I guess he was right.... IF you wanted to lose all your money. He did a very convincing writeup when PBR was around $50 to try to get new subscribers. So much for that! I doubt that PBR will go out of business, but I think that's about the best you can hope for.
AMGN is a VERY different company today from what it was pre-2000. New management has changed the mind-set toward things like dividends. They're not nearly as obsessed with the stock price as they were when they were using the stock as currency to acquire other companies. Furthermore, the entire stock market is very different. The general attitude toward splits now reflects the changes in the fundamental ways in which people invest their money. Oddly, before fixed commissions and odd-lot differentials were eliminated, splits made it more expensive for investors to sell their positions. All commissions were based on 100-share (round) lots. More lots that were sold resulted in more commissions. It cost $17 to buy or sell 100 shares of a $10 stock, $34 to sell 200 shares, $51 to sell 300 shares, $170 to sell 1000 shares, etc. Each hundred shares was treated as a separate transaction for purposes of calculating commissions. There was no such thing as a volume discount for larger orders. Nowadays, nearly all brokerages charge a flat commission without regard for number of shares or total dollar amount. I pay the same $2 commission whether the trade (buy or sell, limit or market) is 10 shares or 10-thousand shares. Splitting a $120 stock doesn't make it any more "affordable" than a $40 stock. If someone can't afford $120 plus commission to buy one share, he/she shouldn't be buying stock in the first place. You might have a slightly valid point for stocks selling over $1000. This might surprise you, but one major mutual fund company is about to do a REVERSE split of its extremely popular Index funds that already sell near $100/share. They consider the price too low at $100. Take a look at what one share of BRK.A, that could have been bought in 1964 for $11.50, would be worth today. You'd still have exactly the same number of shares; one.
Maybe I'm missing something. What's he difference between owning 100 shares at $120 and 300 shares at $40? If someone can't afford to buy to buy 100 shares at $120, he can just as easily buy 33.33 shares at $40. The trade costs are exactly the same at most brokerages. Most of the companies that have "split" their shares in recent years have done so with, for example, 105-for-100 shares, effectively paying a 5% stock dividend (which is tax-free until the shares are sold.) I can understand the reasons behind a reverse split to raise the share price, as Citi (C) did when the stock was under $5. They issued 10 shares for each one owned in order to get the price over $10. Anyway, I seriously doubt that AMGN will split the stock in our lifetime if ever. Meanwhile, I suppose you could just take your stock certificates and cut them neatly in thirds. BTW, why aren't you advocating for BRK.A to split? The stock is now somewhere north of $172,000 per share, and that rather lofty price doesn't seem to have hurt it.