Why Do Stocks Split?

Why Do Stocks Split?

Why do stocks split? Companies will often split shares—and, so, prices—to make purchasing the stock cheaper for investors. However, it’s also important to note that a stock that splits is not necessarily a great investment, even if it’s now cheaper.
Why do stocks split? When a.. Read More

Penny Stocks: Distinct Infrastructure Group doubles it profit

Penny Stocks: Distinct Infrastructure Group doubles it profit

The telecommunications cabling company has seen profit double and its share price climb on strong revenue.
DISTINCT INFRASTRUCTURE GROUP (symbol DUG on the TSX Venture Exchange; www.diginc.ca) provides design, engineering, construction and maintenance services to the telecommunications, infrastructure and utilities industries. It operates in Ontario, Alberta… Read More

Dear Pat: What is your opinion on Carmanah Technologies Corp.? Thanks.

A: Carmanah Technologies Corp., $4.72, symbol CMH on Toronto (Shares outstanding: 24.6 million; Market cap: $116.2 million; www.carmanah.com), sells solar-powered LED lighting as well as other solar-powered systems. The company contracts out most of its manufacturing.

Carmanah’s light beacons are used for marine navigation and on… Read More

Pat: Can you comment on why some companies split their shares, while others seem content to let their share prices increase instead? As well, I notice that while Google announced a plan to split its stock earlier this year, it seemed a lot more complicated that a normal split. Can you explain what happened in this specific case, and why don’t the shares seem to have split yet? Thanks.

When a company splits its shares, it is simply cutting itself up into a different number of pieces without changing its fundamental value. It simply wants its stock to trade in a price-per-share range that seems reasonable to investors.

Mechanics of a split: If a stock’s… Read More