First the details:
31, normally a mutual fund holder only, single. Only debt is a 1.97% car loan (not a lease).My first and only stock purchase is Potash Corp. Ticker symbol POT but I own it in Canadian funds on the TSX. Was purchased thru my bank's discount brokerage. I purchased this stock at an average of $128 a share CDN and now it's over $200. I own 21 shares. It is not being held in retirement plan so appropriate taxes are owed for dividends or gains/losses.
So currently it's a $1600 gain which is equal to about my investment contributions over 2 months
Potash announced a 3-1 spilt to be done later on in May. Quite frankly Cdn large caps are expensive anyway so I understand the mechanics of the 3-1 to entice more buyers. They are increasing dividend to 80 cents a share from
- I did not start a purchase plan for this stock for dividends as I have dividend mutual funds.
I am asking for other's experience from DIY investors what historically they found during a stock spilt of this order. What can I expect to the value of my 63 shares from a historical perspective say 6 months down the road. I'm asking for historical perspective from people who have had this happen, and I'm not seeking advice on what to do, although those suggestions might enhance the thread.
I had been debating about selling when it was $214 and using my gains to start an ETF portfolio then I read the news of this spilt.