posted
First let me just say thank you all. I dont post much, but I do alot of reading here and am learning alot. Even so, I am still an idiot when it comes to this stuff, but I am trying to absorb what I can.
I was doing some reading yesterday on some long term investing and have been watching activision for some time, So i bought 65 shares. Today they announced a 4:3 forward split to take affect for shareholders of record oct 10 on oct 24th. After the split activision will have about 273 million shares outstanding. Right now there are 203,622,000 outstanding. With more shares being available will the price of the stock go down? If So how much do you think? or is there a formula that I can get a good guestimate with? Also with a 4:3 forward split how would i determine how many shares I will receive?
Posts: 16 | Registered: Jan 2005
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posted
8:09am 09/28/05 Activision declares 4-for-3 stock split (ATVI) By Michael Baron NEW YORK (MarketWatch) -- Activision (ATVI) Wednesday said its board has declared a four-for-three split of its common stock. The split will be paid on Oct. 24 to shareholders of record on Oct. 10. Shares of the Santa Monica, Calif., video game developer closed Tuesday at $20, down 15 cents.
OK.......you have to read very carefully. Sometimes they might give you more stock but reduce the price. Say a stock is $10.00 a share. They give everyone 10% more shares. With that they lower the share price by 10%.
In this case: 1 share = 10%. Now you have 1.1 shares and the share price is $9.00. Now $9.00 x 1.1 = $9.90. You have to watch for this type....don't ever buy a stock doing this!!!
Now since you get 4:3...the price will drop slightly. When the news came out....stock price was around $20.50 a share. With the diluted shares....the stock should drop in price to around $15.37 when shares are issued. However, lots of stocks rise back up to their trading levels before the split withing a month unless you get a huge split...2:1....3:1....4:1.....so on.
My advice:
I think your ok.
Also, try using www.tradetrek.com and check 6 month prediction....NEAT SITE!!!
Posts: 2367 | From: Detroit | Registered: Mar 2005
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posted
UFOWNAGE--- i can't argue with anything R1MAN says. but watch out for r/s and don't buy into any co that EVER had an r/s (reverse split). about 67% of all r/s end up in the tank. i'm thinking too that this may begin to affect f/s because many people don't know the difference and are just scared of any kind of split.
Posts: 229 | From: new mexico | Registered: Apr 2005
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posted
thx for the info yall, i think im going to put up as much as i can afford and wait to buy again after the split.
Posts: 16 | Registered: Jan 2005
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