How To Play Splits

Stock splits are one of the most powerful stock-moving mechanisms. They became rather sparse when the market bubble burst, but when the DOW and NASDAQ moves much higher, more splits are announced.

Many analysts say that stock splits don't mean anything. BALONEY! What they mean is that the "values stay the same." That is true. For instance, if you own 100 shares of XYZ at 100 dollars per share and the company does a 2-for-1 split, the next day you will have 200 shares at 50 dollars per share. The "value" is the same because you had 100 X100 which equals 10,000 and now you have 200 X 50 which equals 10,000.

But the analysts don