split question

N

nwtflogan

i am a newbie but have done tons and tons of research, i have been trading peabody (btu) it will split wendsday. i know splits are always a gambele but i see agreat trade here by the companies numbers. do i walk away or hold through it? its my first spplit as i always try to avoid getting caught up in the split game. dont hold back as i have made great trades learning on my own i welcome all advise
 
I'll go first.................Stock splits tend to be bearish. It is believed that "retail" investors prefer to buy less-expensive stocks. It's easier for professional investors to pressure a market when the "public" is the primary buyer. If BTU gets back below $84/share, it could work its way down to $70. We'll see.
 
ok i understand but if i get this right it will split and trade at around 46 give or take so wouldnt that seem bullish to the investor for a company like this?
 
Re-read the part where I talk about it being "easier for professional investors to pressure markets where retail traders are believed to be active". The "fundamentals" won't matter because the pros will be selling into any bids. We'll see what happens.
 
Quote from nwtflogan:

i am a newbie but have done tons and tons of research, i have been trading peabody (btu) it will split wendsday. i know splits are always a gambele but i see agreat trade here by the companies numbers. do i walk away or hold through it? its my first spplit as i always try to avoid getting caught up in the split game. dont hold back as i have made great trades learning on my own i welcome all advise
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I see you are new, so I think you will find it useful in subsequent posts to utilize the "check spelling box" to the right of "submit reply" before you post.

Hope you find the info you are looking for.
 
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