Quote:
Originally Posted by lewdog
So you agree it’s all psychological. Great.
The value of the stock is the same whether amazon is $2k or $1k is a share. You’d be in better shape to buy in before a split if you believe in the company.
Thank you.
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We’re talking past each other.
You’re saying that a guy shouldn’t buy a share on a stock split because INTERNALLY the valuation shouldn’t change. But not all trades are made that way.
There can be a substantial bounce IN THE MARKETPLACE after a split.
RunKC didn’t specify his strategy here. He could very well buy on the announcement, ride it awhile and get back out, capturing the hype wave. That isn’t necessarily a bad strategy.
Or
RunKC could be using news of a stock split as validation for recent gains that they aren’t just a run to stability on this coronavirus thing. Logic would dictate that if it was an unexpected bounce or unsubstantiated within the business, they wouldn’t split. Which wouldn’t necessarily be a bad strategy.
Or
He could be just looking for a lower cost into a share. Which wouldn’t necessarily be a bad strategy.
I agree with you in principle if you’re looking at a buy and hold strategy. But there are some things that RunKC could be looking at that could be sound strategies also. He just didn’t specify.
You can both be right.