The mid-term elections are over and it's my impression that most folks are breathing a sigh of relief, suggests Neil Macneale, editor of 2-for-1 Stock Newsletter.
Pretty much everyone has some things to cheer about and some things to complain about. And everyone (except the folks in Georgia) will be happy to be without the constant bombardment of political advertisements.
The most important outcome, in my opinion, is that the temperature in the political environment seems to be suddenly dropping down to something we might recognize as "normal". This all seems to be good news for the stock market.
Most boards of directors still seem to be holding their breath to see which way the economic winds are going to blow, but we did have one split announcement that made my day. Amerco (UHAL), the parent company of the very familiar brand U-Haul, delivered a 10-to-1 split.
I will be adding UHAL to the 2-for-1 Index without hesitation. U-Haul has been providing the do-it-yourself mover with trucks and trailers for over 75 years and is the undisputed leader in this business. This is a profitable, well managed, time-tested company that seems relatively immune to the ups and downs of the economy.
Be advised that the 10-for-1 split was not a normal split. The nine new shares were delivered to UHAL shareholders on 11/10; they are non-voting shares and are trading as Amerco Non Voting Ordinary Shares Series N (UHALB).
When you look up information on UHAL you may see some very odd numbers. Some online services are showing statistics for just the UHAL shares and not the combined UHAL and UHALB, resulting in a PE of 0.97 for example, instead of 9.7.
It will be only the UHAL shares going into the 2-for-1 Index, not UHALB. On December 19th, Amerco will be changing its name to U-Haul Holding Company and will be moving its listing from the NASDAQ to the NYSE. Trading tickers will be UHAL and UHAL.B. No action will be required of shareholders.
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