Quote:
Originally Posted by GregWeld
Never buy a stock based on a split or speculation of a split.... It's FUN when they do... but it's been proven that a split is nothing more than just that - a split. Having said that - that covers the Investing 102 portion - Mikey D's hasn't split since 1999... and they have a history of splitting - but not a particular "rhythm" i.e., every time they hit $100.... At $100ish it's a pretty "affordable" stock.. it's not like Google or Apple where you don't get many shares for your $5K. So you can't really make an argument that way.
In other words --- we'd just be guessing. Although wouldn't that be nice!
That's a smart man right there! To recognize a temporary dip in the price and seize the opportunity! Brilliant move!
The difference is you saw a valid reason for the stock to dip -- but knew that it's a good company and they would recover from it.
That's a very different scenario than a J C Penny's (JCP) where they're down because they shot themselves in the foot. No a "dip" in the share price might be an entry point - but you'd just be gambling because there's nothing you can point to that would tell you they'll recover from that injury.
One is smart and educated - one is gambling. Big difference.
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No, I never bought based on a split. MCD is a good dividend stock.
However it would be nice if they split. This is the longest they have ever gone with out a split.