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
60. 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.
- posted 13 years ago