Thread: Money Investing megathread extravaganza
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Old 02-01-2020, 10:23 AM   #3341
lewdog lewdog is offline
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Join Date: Sep 2011
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Quote:
Originally Posted by Buehler445 View Post
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.
By waiting for a stock split you just missed a 10% gain, dumbass!!!

/Won
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