Birchtree's Account Talk

[Birchtree]

And if a post split stock starts going back up you make money faster. You can make more money with 200 shares than you can with 100 shares. I certainly hope to see more splits this year especially in the energy sector. Small caps are leading today with a strong run - plenty money is going to be made for those brave enough to participate.

 

[MrJohnRoss]

And if a post split stock starts going back up you make money faster. You can make more money with 200 shares than you can with 100 shares. I certainly hope to see more splits this year especially in the energy sector. Small caps are leading today with a strong run - plenty money is going to be made for those brave enough to participate.

OMG, you're hilarious. I went to a pizza parlor once, and the guy asked me if I wanted it cut into 8 slices or 16. I told him to only cut it into 8, because there's no way I can eat 16.

 

[Birchtree]

It's really only simple math - if you own 100 shares and the equity goes up +2 points you win with +$200. If you own 200 shares and the equity goes up +2 points you win with +$400. That's the way I tend to make my money. And in a mega trend secular bull market money falls out of the sky - it's impossible not to make money with a full truck - and I pull an extra trailer with margin buying power. There is nothing like leverage to get to your destination quicker.

 

[MrJohnRoss]

I give up. *facepalm*

Keep spreading the bull-tinky, we need it.

 

[wavecoder]

Get on board the BirchTree express! :nuts:

 

[Birchtree]

The other day TREX was up 17 points and I own 400 shares for a gain of +$6800. Sometime in March I'll end up with 800 shares after a 2/1 split - now it'd be sweet to get another 17 points on 800 shares - +$13,600. See how that works? And whose to say that in a couple of years it splits again - whew.

 

[MrJohnRoss]

The other day TREX was up 17 points and I own 400 shares for a gain of +$6800. Sometime in March I'll end up with 800 shares after a 2/1 split - now it'd be sweet to get another 17 points on 800 shares - +$13,600. See how that works? And whose to say that in a couple of years it splits again - whew.

Shtap it. I don't care if the share price is one penny or $40,000 a share. A 10% gain is a 10% gain, regardless of the share price.

Now really, I am giving up.

 

[MaStA]

What John is saying is if a stock is $100 and you own 100 shares and it splits it becomes 200 shares at $50 each. It's still the same value regardless of how you split it. You as a current shareholder do not gain anything from a split. From what I've read a split is to make the stock cheaper to entice people to buy into it more easily since some people can't afford shares if a stock is $1,000.

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[Birchtree]

You are both correct regarding the value - but I'd rather have 200 shares of anything over 100 shares. It's the number of shares that counts to provide gains.

 

[MaStA]

You are both correct regarding the value - but I'd rather have 200 shares of anything over 100 shares. It's the number of shares that counts to provide gains.

I don't really agree. What would have been a 1% gain before the split is a 2% gain after the split. It's still the same money made though since after the split the shares are less valuable. If it makes you feel better owning more shares that are less valuable so be it.

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[Birchtree]

I'll take as many stock splits as I can get. The more shares I own times price appreciation is where I make my capital gains. And the coming mom and pop deserve cheaper shares that they will eventually push higher because of demand. It's the number of shares of anything that contributes to wealth - so gimme more splits while the bull is rampaging.

 

[coastalite]

I'll take as many stock splits as I can get. The more shares I own times price appreciation is where I make my capital gains. And the coming mom and pop deserve cheaper shares that they will eventually push higher because of demand. It's the number of shares of anything that contributes to wealth - so gimme more splits while the bull is rampaging.

From a noob's perspective, I don't know how doubling your number of shares can be a bad thing? The acquisition of shares is the name of the game, right? If a split lowers the stock price and entices more buyers - that's a good thing, no? Over time, with compounding interest and dividend reinvestments - and the potential for more stock splits - thus, luring more buyers in - it sounds like a good thing to me.

I remember reading something recently about Coca Cola - that if you had bought 1 original share and held it, by now, you'd be pretty darn wealthy. I wonder how many times that stock split, and factor in all the compounding interest, and how much in dividend reinvestments it went through, etc.

So, are you telling me that - over all this time, if that 1 original Coke share had never seen any splits, then it would be worth the same amount of money today? From a noob's perspective, my pea-sized brain finds that difficult to understand. :toung:

 

[userque]

From a noob's perspective, I don't know how doubling your number of shares can be a bad thing? The acquisition of shares is the name of the game, right? If a split lowers the stock price and entices more buyers - that's a good thing, no? Over time, with compounding interest and dividend reinvestments - and the potential for more stock splits - thus, luring more buyers in - it sounds like a good thing to me.

I remember reading something recently about Coca Cola - that if you had bought 1 original share and held it, by now, you'd be pretty darn wealthy. I wonder how many times that stock split, and factor in all the compounding interest, and how much in dividend reinvestments it went through, etc.

So, are you telling me that - over all this time, if that 1 original Coke share had never seen any splits, then it would be worth the same amount of money today? From a noob's perspective, I find that difficult to understand.

I know many have already said this, or essentially this; but sometimes things are "better" received when academia or "the professionals" say them.

From:The Motley Fool (Fool.com: Fool FAQ - Stock Splits)

"A stock split simply involves a company altering the number of its shares outstanding and proportionally adjusting the share price to compensate. This in NO WAY affects the intrinsic value or past performance of your investment, if you happen to own shares that are splitting. ...

...First, as a stock price skyrockets, some people will be psychologically unwilling to pay that "high price" so a stock split brings the shares down to a more "attractive" level. Again, the intrinsic value has NOT changed, but the psychological effects may help the stock. Second, a stock split generally occurs in the face of new highs for the stock. Thus, it's an event dripping with positive connotations and associations. . . it's makes bulls snort and roar to suddenly have "twice as many shares" as they started with, for example..."

[emphasis in the original]​

Hope this helps.

 

[Birchtree]

Byron Wien says he still sees big gains for our markets this year in the range of 20% - now that would be a sweet deal. I'm patiently waiting for the slow sideways slide into March so my dividends can go to work. HD (Home Depot) really pumped up their payout for 3/27 the other day. Then once I'm through March I have June to look forward to another repeat - it just never ends.

 

[Kaufmanrider]

Birch, what do you know about PGX, Proshares Preferred Portfolio ETF, based on The BofA Merrill Lynch Core Fixed Rate Preferred Securities Index (Index). I bought a chunk a few weeks ago for the dividend yield, 6.42% paid monthly. I am counting it like a Bond Fund, but not sure how it works. I see it called a Hybrid Bond/Stock? Not sure if it rises or falls on interest rates or share prices or both? I assume it is fairly stable? Schwab Second Opinion had it as a buy for the long term.

 

[Birchtree]

Since you already own PGX-pacific I'd be inclined to hold and see what it does. I'd try and get a prospectus and see what's inside the ETF. I'm not inclined to go near anything related to bonds - they operate off of negative vibes and that makes me nervous. The high has been $15.10 so you have some room for expansion. You may lose value as interest rates begin to rise but that may be years away from now.

 

[Birchtree]

I see where Eric Holder is in the hospital - it would in my opinion be a blessing for the country if he never comes out.

 

[Birchtree]

"Where's the stock market new all time high?"

http://www.marketoracle.co.uk/Article44608.html

 

[Birchtree]

The market

 

[Bquat]

I see where Eric Holder is in the hospital - it would in my opinion be a blessing for the country if he never comes out.

Maybe he's worried about House hearings coming up finding out there's no FBI investigation of the IRS and reporting it. I do hope he gets well.