Energy drink maker Monster Beverage (NASDAQ: MNST) is about to halve its stock price on purpose. The company's 2-for-1 split, announced July 8, hands each shareholder of record as of July 24 one additional share for every share held. The new shares are distributed after the market closes on Aug. 10, and the stock begins trading at its split-adjusted price on Aug. 11.
Mechanically, nothing of substance happens. Every investor's stake is worth the same the morning after as the night before, and the business itself is untouched.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
So why pay attention at all? Because a split is usually something a board does after a big run in a stock. And in Monster's case, the run -- and the growth behind it -- is the part actually worth an investor's time.
The mechanics are simple. The split is effected as a 100% stock dividend, so the share count doubles and the price halves. Monster's market capitalization of about $95 billion doesn't move.
#NVIDIA #price #Share
Mechanically, nothing of substance happens. Every investor's stake is worth the same the morning after as the night before, and the business itself is untouched.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
So why pay attention at all? Because a split is usually something a board does after a big run in a stock. And in Monster's case, the run -- and the growth behind it -- is the part actually worth an investor's time.
The mechanics are simple. The split is effected as a 100% stock dividend, so the share count doubles and the price halves. Monster's market capitalization of about $95 billion doesn't move.
#NVIDIA #price #Share
6 days ago
