T1B

Bill in Houston wrote: ↑Fri Aug 28, 2020 8:47 pm

Kierland wrote: ↑Wed Aug 26, 2020 9:36 pm I don’t have to deal with IRA-401(k)BS thank god. Nice being in charge of your life.
That and retirement sounds horrible so I’m skipping it.

So you voluntarily pay more taxes than you need to.
Whatever for?

Buttfuck Bill wrote: ↑Fri Aug 28, 2020 8:52 pm Investing requires research, due diligence. An investigation into to potential risks and returns.

Bill in Houston wrote: ↑Sat Aug 29, 2020 12:59 am
Brokers match sellers and buyers. They facilitate transactions.

mvscal wrote: ↑Sat Aug 29, 2020 1:22 am

Bill in Houston wrote: ↑Sat Aug 29, 2020 12:59 am
Brokers match sellers and buyers. They facilitate transactions.

Duh...

And when the transactions they facilitate fail to show returns...they become ex-brokers.

Bill in Houston wrote: ↑Fri Aug 28, 2020 8:47 pm

Kierland wrote: ↑Wed Aug 26, 2020 9:36 pm I don’t have to deal with IRA-401(k)BS thank god. Nice being in charge of your life.
That and retirement sounds horrible so I’m skipping it.

So you voluntarily pay more taxes than you need to.
Whatever for?

Bill in Houston wrote: ↑Sat Aug 29, 2020 1:10 pm

mvscal wrote: ↑Sat Aug 29, 2020 1:22 am

Bill in Houston wrote: ↑Sat Aug 29, 2020 12:59 am
Brokers match sellers and buyers. They facilitate transactions.

Duh...

And when the transactions they facilitate fail to show returns...they become ex-brokers.

Wrong again, dummy.
They go on and get another transaction.
You just agreed. They are brokers, they only bring transactions.

Mikey wrote: ↑Mon Aug 31, 2020 3:09 pm That was all known well in advance.

Innocent Bystander wrote: ↑Mon Aug 31, 2020 3:48 pm

Mikey wrote: ↑Mon Aug 31, 2020 3:09 pm That was all known well in advance.

Yeah, but I try not to pay attention to Apple. I didn't know Apple made up a not insignificant portion of Buffet's investments, for example.

What happens now?

Mikey wrote: ↑Mon Aug 31, 2020 3:53 pm

Innocent Bystander wrote: ↑Mon Aug 31, 2020 3:48 pm

Mikey wrote: ↑Mon Aug 31, 2020 3:09 pm That was all known well in advance.

Yeah, but I try not to pay attention to Apple. I didn't know Apple made up a not insignificant portion of Buffet's investments, for example.

What happens now?

There's nothing strange or diabolical about a stock split. When the value of a stock gets so high that it's hard for people to buy a single share they might do a stock split. In a hypothetical four to one split, if you have 100 shares that are worth $100 each, then you have $10,000 in stock. If the stock splits four to one you would now have 400 shares worth $25.00 each with the same total value of $10,000.

I guess in some cases the split may drive the value up a little because it now puts more people in the market to buy it. But it doesn't significantly increase or reduce the value of what anybody already owned. To me it's really more of a psychological thing than anything else. It gives the impression that the company has more room to grow, but nothing has actually changed except the value of a single share of stock.

Bill in Houston wrote: ↑Mon Aug 31, 2020 9:22 pm
Stock splits are meaningless and senseless.

Bill in Houston wrote: ↑Mon Aug 31, 2020 9:22 pm

Mikey wrote: ↑Mon Aug 31, 2020 3:53 pm

Innocent Bystander wrote: ↑Mon Aug 31, 2020 3:48 pm

Yeah, but I try not to pay attention to Apple. I didn't know Apple made up a not insignificant portion of Buffet's investments, for example.

What happens now?

There's nothing strange or diabolical about a stock split. When the value of a stock gets so high that it's hard for people to buy a single share they might do a stock split. In a hypothetical four to one split, if you have 100 shares that are worth $100 each, then you have $10,000 in stock. If the stock splits four to one you would now have 400 shares worth $25.00 each with the same total value of $10,000.

I guess in some cases the split may drive the value up a little because it now puts more people in the market to buy it. But it doesn't significantly increase or reduce the value of what anybody already owned. To me it's really more of a psychological thing than anything else. It gives the impression that the company has more room to grow, but nothing has actually changed except the value of a single share of stock.

You’re right, of course. No intrinsic value is created from a stock split. In fact, the opposite is true as there are expenses incurred in creating the split (which is why Buffett has never done it)

It’s arguable that it creates more interest in the stock, as it only effects a few small investors. Technology has allowed small investors to gain access in a variety of ways.

Stock splits are meaningless and senseless.

Mikey wrote: ↑Mon Aug 31, 2020 9:35 pm

Bill in Houston wrote: ↑Mon Aug 31, 2020 9:22 pm
Stock splits are meaningless and senseless.

Especially now that some discount brokers are offering fractional shares.

Bill in Houston wrote: ↑Tue Sep 01, 2020 2:03 am Let me guess. No one told you there would be math involved.

Innocent Bystander wrote: ↑Tue Sep 01, 2020 2:31 am

Bill in Houston wrote: ↑Tue Sep 01, 2020 2:03 am Let me guess. No one told you there would be math involved.

Explain.

Innocent Bystander wrote: ↑Tue Sep 01, 2020 2:31 am

Bill in Houston wrote: ↑Tue Sep 01, 2020 2:03 am Let me guess. No one told you there would be math involved.

Explain.

Mikey wrote: ↑
if you have 100 shares that are worth $100 each, then you have $10,000 in stock. If the stock splits four to one you would now have 400 shares worth $25.00 each with the same total value of $10,000.

Innocent Bystander wrote: ↑Tue Sep 01, 2020 2:31 am What was $1000 before the split becomes 1250 or more afterwards.

FiatLux wrote: ↑Tue Sep 01, 2020 3:59 am

Innocent Bystander wrote: ↑Tue Sep 01, 2020 2:31 am

Bill in Houston wrote: ↑Tue Sep 01, 2020 2:03 am Let me guess. No one told you there would be math involved.

Explain.

Stop spamming the board little pickle.

You have google.

Innocent Bystander wrote: ↑Tue Sep 01, 2020 12:37 pm Right. For the risk takers:

Forward split good:
- Company outlook good
Explain how declaring a stock split changes the company outlook. How is it different than if they didn't split?
- Company splits stock forward
?? What does this mean? Of course it's a forward split. What else would it be?

- Opens door for more investors to invest
Not really. Robinhood would accomodate all investors regardless of share price.
- Old stockholders enjoy the benefits of more investors joining the party.
Again, price per share is not what drives investors to the party. It's based on the perceived intrinsic value of the company and the price for that value. Go ahead and check with your "crew", though this is likely over their heads too.
- Water finds its level as new stock price rises with investor confidence
Explain how this is a benefit vs. leaving the stock price unchanged. What is the material difference?
- 10 stocks became 100 stocks became more profit than if left at old price
No. You're completely wrong here, and by now this is not surprising.

If XYZ Corp. has $1MM profit, and 10 shares outstanding, that is $100k profit/share. If I own half the company, my profit is $500k.

If the stock splits (1:10 in your example) there are now 100 shares outstanding, and $10k profit/share. If I own half the company, my share of the profit is $500k (50 shares X $10k per).


Reverse split good (rare):
- Company outlook good
- Company wants to play with big boys on the big board
- Financials together, investors like outlook
- Water finds its level as new stock price rises with investor confidence and big board exposure
I have no idea what you've c&p'd here. Are you sure your sources are reliable?

Reverse split bad (common):
- Company is being eaten alive from the inside by poor management, and/or intentional sabotage as insiders gut it for profit before bankruptcy
Are these "insiders" you speak of not also shareholders?
- Company may also be in danger of being de-listed from the big board
Finally a truth. I guess your source isn't complete bs. BTW, Berkshire Hathaway issued B shares when it bought Burlington Northern Santa Fe railroad. It did a stock and cash buyout and didn't want to issue fractional shares of BRK.A, so they created the B shares. Buffet knew this would not change the value of his company.
- Financials suck, or are hidden/obfuscated
- Water finds its level as long-term investors bail, and day-traders pump and dump
Again, this is gonna happen regardless of a split, reverse split, or no change at all. Feel free to explain otherwise.
- Stock prices fall back down to where they were before ... except this time that single stock represents the number of stocks before the reverse split, so instead of 10 stocks at 3 bucks, you have 100 old stocks at 3 bucks, meaning worse loss.
The reorganization of shares would not effect the company's value. If the company's fundamentals deteriorate, it will likely fall in price. Or a number of other issues could occur which influence where it trades. The number of outstanding shares does not effect the trading as it doesn't effect the value of the company.

Mikey wrote: ↑Thu Sep 03, 2020 6:41 pm Markets are tanking today.

Is this the dreaded poptart "Doom"sday?
Are we all going under?

Bill in Houston wrote: ↑Thu Sep 03, 2020 8:44 pm And if the open is higher than where you where stopped out?

I know, this is easy for ya.

Like going to the casino and cleaning out the house.

Mikey wrote: ↑Sun Aug 30, 2020 11:39 pm A stock broker is somebody who is licensed by a state or states to buy and sell stocks. His or her primary function is to execute trades on the stock markets. He generally earns a commission on every trade he executes. You as an individual cannot do this you have to go through a broker.

There seems to be some confusion here between “broker” and Financial Analyst or Advisor. Generally licensed as a Chartered Financial Analyst, a CFA can also be a broker, and vice versa, but not necessarily.

There are low cost on-line brokers (Schwab, E-Trade, etc.) where you don’t necessarily deal directly with any individual broker. You enter your order and it’s made automatically, following whatever instructions you provide (market order, stop or limit order, etc).

Mikey wrote: ↑Tue Sep 08, 2020 7:34 pm TSLA is off 78 points today (so far).

That's equivalent to almost 400 points "pre-split".

Might be a good time to buy some...

BTW...I cashed out took profits on positions in

ENPH
ADBE
NVDA
LRCX

last week. All of them after some loss off their highs, but all of which I also had solid gains on. Guess my gambling timing was pretty good on those. At least for now.

Now the challenge is when to jump back in...

Bill in Houston wrote: ↑Thu Sep 24, 2020 1:02 pm

Mikey wrote: ↑Tue Sep 08, 2020 7:34 pm TSLA is off 78 points today (so far).

That's equivalent to almost 400 points "pre-split".

Might be a good time to buy some...

BTW...I cashed out took profits on positions in

ENPH
ADBE
NVDA
LRCX

last week. All of them after some loss off their highs, but all of which I also had solid gains on. Guess my gambling timing was pretty good on those. At least for now.

Now the challenge is when to jump back in...

Mikey, where was the BUY signal from you on SPI???

https://www.marketwatch.com/story/spi-e ... quote_news

We could have all been rich.

Kierland wrote: ↑Wed Aug 26, 2020 4:38 pm

Mikey wrote: ↑Wed Aug 26, 2020 3:27 pm I bought a few shares of NIO this morning.

Just hit Etrade up for a few myself. We shall see what happens.

I told my kid about it and he wanted to know how much it will be if it goes where Tesla is and he seemed pretty happy with that number.