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Author: koski19 Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 6729  
Subject: Opinions Needed Date: 6/15/2012 6:33 PM
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Here's the setup. I purchased a stock last month and as of the close today the stock is up 33.12%. The unrealized gain is $520. The stock is definitely in a uptrend with only slight consolidations and continued breakouts.

Next Friday 22 June the company is paying a dividend in the form of a forward stock split of 5-1.

Here are the points I'm considering:

1. If the stock starts a downtrend do I sell and take the profits before the split or do I hang out and get the stock split of 5-1? Hoping for continued uptrend after the split.

2. With the stock split I increase my holdings from 500 shares to 2000 shares a 400% increase. How do you think the stock will perform following the split based on the trend before the split, continue the uptrend or a pending reversal?

Just looking for opinions, not advice. Thanks in advance.

JK
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Author: CABob Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 6647 of 6729
Subject: Re: Opinions Needed Date: 6/15/2012 11:57 PM
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I suggest you not do anything as a result of the stock split. 500 shares going to 2000 shares sounds like a 4 for 1 split not 5 for 1, but, in any case, after the split the total value of your holding will be the same as before with the share price adjusted. Generally a stock split is a favorable sign, but, any price change is probably already been reflected in the market. A decision to sell should be based on what you think will happen from this point forward.

Bob

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Author: koski19 Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 6648 of 6729
Subject: Re: Opinions Needed Date: 6/16/2012 9:39 AM
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You're right it's 4-1, my mistake. Thanks for the info. My thought is to stand and receive the split. Long ago I bought Glaxco and it too split 2-1 and then took off and I made some money on that trade.
I'm thinking that this stock will continue to move in an up trend after the split. Coke is another stock with a split coming this summer but the price now is expensive.

Jeff

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