is there any way to gauge when a stock will split?

Question

how to find good split candidates?

Answer 1

This is normally decided at the Director's level during the Board meeting. After the meeting, the Corporate Secretary is legally bound to disclose a stock split or a reverse stock split which will happen on a future date.

Answer 2

They usually split to keep the stock price within a certain price range, after it's run up for awhile. Sometimes people shy away from stocks that are $120/share, for instance. You can look and see what price the stock split at previously, or historically. For example, I think that Apple split at around $80 or so the last 2 times, so when it gets to that level, you could look for it to split again. The companies always announce their splits like a month beforehand. You can do a search for split announcements on Yahoo Finance, or some other search engine. After the split, the stock will usually dip in price, because people will use it as an opportunity cash in some shares, and book some profits. But that's a good buying opportunity, because it usually recovers quickly.

A reverse stock split is not a good sign. It means that the price has stayed low, and the company needs to do something to generate some interest in the public owning it. Mutual funds usually don't buy stocks that trade under $5/share. Conversely, some companies want their stock prices very high, to reduce speculative trading in it, and encourage long term investments. Berkshire Hathaway (Warren Buffet's company) "A" shares (BRK-A) trade for $92,800/share! They've never split.

Answer 3

well one thing I know... a stock will split only if it is going UP UP UP. I did my research. I chose exactly the right stock. Mead Instruments.. They make telescopes and binoculars. I noticed the previous Christmas their stock shot up from 5 to 30 because telescopes and binoculars are evidently big Christmas items. I noticed also that it split when it reached 20 so I figured the same thing would happen the following Christmas, so I bought 2000 dollars worth of stock in September.

Only problem was, it was September 4th, 2001. Just one week before the towers were hit. go figure. In the past five years, it has never again climbed above 5 and a half and now hovers consistently around 2 and a half!!! yikes.

Answer 4

You are confusing cause and effect. You think that splitting stocks perform well, while in reality well-performing stocks split. Splitting stocks' abnormally good performance by and large occurs within 30 months BEFORE the split. Past the split, there is no discernible outperformance.

Answer 5

That is a very good question, the only way to find out is to keep a keen eye on corp. news... listen for those little hints like a troubled quarter, check and see if thier competitor, had a good qtr. they may try and pull a buy out. and thiers your chance to pounce...

Like MTV just bought the Makers of C.A.R.S- and The chrocicales of narnia- the only way anyone knew is cause they were given rights in the film credits of the movie... Now u see!

Answer 6

No.

And shares that split mean nothing. You just have more shares that have less value. Your net is the same.