The Motley Fool Discussion Boards

Previous Page

Investing Books / Gorilla Game, The

URL:  https://boards.fool.com/hey-rob-just-a-noteyes-more-bananas-no-more-12108450.aspx

Subject:  Re: Some hairy splits ahead Date:  3/2/2000  6:38 PM
Author:  psuasskicker Number:  1283 of 8809

hey rob:

just a note...yes more bananas, no more value. splits only have a psychological effect on investors. if you're a LTBHer, you shouldn't really pay much mind to splits. all it means is you physically have more shares. but no additional value is created by a split. typically, a loose view of the history of a splitting company goes as follows:

company anounces a split.
excitement abounds and the stock price spikes.
the stock splits.
excitement dies down and profit taking occurs, dropping the price.
momentum buyers exit and the price levels out, returning to its normal growth curve.

hope this helps. welcome to the boards. you'll learn a lot here...i sure have, and i'm learning more every day! :-)

Foolishly,
chris
Copyright 1996-2021 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us