AboutDr. Joseph de Beauchamp Expertise Blue Chips stocks, investment, return, risk, and all information on investing in blue chip stocks is a complex area. I can help answer these questions.
Experience
Past/Present clients Over 2000 of the largest public companies.
Question I am an amatuer investor. My strategy is loosely based on O'neil's CANSLIM trading system. I make an attempt to research all stock investments to the full extent of my skillset before making every purchase. I have been holding Exelon Corp. (EXC) for several years now and have considered it a solid long term stock. They are set to split 2 for 1 on May 5 2004, and I am considering adding to my position. In your opinion, how to you think this split will affect EXC's shareprice? Thanks in advance for sharing your opinions/advice with me.
Answer Stock seems to be making a new high. Many cover this stock or 13 with positive recommendations. I remember: buy low and sell high. It might be good for the long haul but it has not been this high in five years. As I always say: You cannot get hurt taking profits. Another good question here for you: Would you buy this stock at this price today or would you pay this much for the stock?
The stock split would have a neutral effect on the stock. You would get twice as many shares for half the price. I would NOT make investment decisions on the fact of an upcoming stock split. Some research shows a sight increase in share price to anticipate the stock split occurring, and then afterwards, a slight falling in share price. So, the effect is neutral.
