GE to open over $100 a share tomorrow

[Car-Guy]

That got your attention. But it looks like it's true.

GE closed Friday at just under $13 a share and "should" open tomorrow at a little over $103... Too bad it's taking a 8 to 1 reserve split to get to these numbers... So if you have a bunch of GE, don't freak out and retire tomorrow morning when you see the opening price.

Of course if you had 10,000 shares of GE Friday, (don't ask me why I picked that number ) you'd only have 1250 shares on Monday but the total value would not have changed. At least over the weekend.

Anyone have any thoughts on how (or even if) the reserve split is likely to effect their stock price movement in the morning? Or over the coming weeks/months? Positive, negative or no material effect?

If you care to read their press release you can find it here. https://www.ge.com/news/press-releases/ge-announces-effective-date-for-reverse-stock-split

 

[aja8888]

edited..

I predict no effect on the stock value.

 

[Car-Guy]

^^^^ The link in my post above explains GE's reasons if you are interested...

 

[aja8888]

I just read it, thanks,!

 

[audreyh1]

Whoa! One of those reverse splits, eh?

 

[MichealKnight]

On my E-trade account it shows my cost basis at 96.... but current value still at $12.95. All of a sudden there's a $13k loss that wasn't there just 2 days ago. Freaked me out moments ago till I found a Barron's story explaining it.

https://www.barrons.com/articles/ge-stock-price-51627766341

"How GE boosted its Share price by 700%"

 

[MichealKnight]

And now for Get off My Lawn, 1st installment:

I really can't stand this stock split stuff. Reverse, forward, sideways, curly, whatever. Yes I'm a novice with stocks but I see stocks split....and people go nuts and bid the shares up even though they are still worth not a dime.

So now, GE feels sexy with a stock price in the 100s -- my goodness are we teenage girls at the mall wanting to buy tighter jeans?

Stuff like this is why I've always felt the stock market is 30% fake and probably run by Vince McMahon.

Ok, that's it. Get back on my lawn now if you must.

 

[NW-Bound]

Some years ago I read that some mutual fund managers did not like to buy "cheap" stocks with price per share too low. And the public also looks down on "penny stocks".

Hence, a reverse split was a way to make a company share more respectable, and worthy of consideration by investors.

A regular split is more common. A share that is as expensive as Berkshire Hathaway A share at $420,000 per share puts it out of the reach of 99.9% of investors. And can you imagine writing an option contract on a round lot of 100 shares? No, no options on BRK-A exist.

Hence, BRK-B shares were created, and at $278/share is a lot more accessible to investors.

 

[yhoomajor]

Stuff like this is why I've always felt the stock market is 30% fake and probably run by Vince McMahon.

Ok, that's it. Get back on my lawn now if you must.

30% is not even close. US financial markets are a complex puzzle, co-mingled with national security, jacked up to compete with foreign financial markets, security threats from China et al..thus requiring constant back-door support from US agencies of all kind.

One lesson I learnt a decade ago (after my utter disillusionment with US financial markets being supposedly free capital markets) - if you can't beat them, join them.

 

[CincyDave]

My limited experience with reverse stock splits has been when a company is trying to keep their price higher to avoid delisting. That's not the case here but i still feel a reverse split carries a negative connotation.

 

[MichealKnight]

$104

So if and when it falls "under $100" I wonder if that sets off all sorts of talking points and mental gymnastics.

My Goodness. 6 in 1......

 

[Out-to-Lunch]

Well, the good news is that they were dropped from the DJIA in 2018. Otherwise, this reverse split would have amped up their influence (going forward) on "the Dow" by a factor of 8.

 

[Sunset]

My limited experience with reverse stock splits has been when a company is trying to keep their price higher to avoid delisting. That's not the case here but i still feel a reverse split carries a negative connotation.

Yes, and in my experience, whenever I was unlucky enough to own a stock that did a reverse split, it's fortunes continued downhill...

 

[Car-Guy]

Yes, and in my experience, whenever I was unlucky enough to own a stock that did a reverse split, it's fortunes continued downhill...

Admittedly buying some GE stock was a gamble on my part... Their recent second quarter report was upbeat but the stock didn't really seem to move much based on that. I have a bit of profit at this point so I'll watch it for a while.... Maybe.

 

[Car-Guy]

Well I bailed early this morning at exactly 107... Nice very short term profit... "At this time" it looks like that was a good move since it's now down to under 101. (And I'm not sure why) I may not be smiling in a few days if it really pops but it's now water under the bridge...

 

[jim584672]

The old adage on Wall Street is never buy a reverse split.

 

[Car-Guy]

The old adage on Wall Street is never buy a reverse split.

Well somebody bought mine

 

[Go-NoGo]

Well, my Vanguard account still has the same number of shares pre-split and at the new reverse split price. They may not have got the memo.

Quick, I am going to sell my shares and retire. Oh wait..