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The stocks below have performed well over the years. That has led to stock prices well over $100 per share on all of these names. Some of these companies could be considering a stock split in the near future. While a stock split does not change the business, it does allow more investors to buy a round lot of 100 shares at lower levels. It also would also give more flexibility and access to options traders who may be less inclined to open a options position when the commitment is so large. Stocks often move up when companies announce stock splits. I would not be surprised to see a stock split announcement coming from these companies:
Here are the five companies:
Priceline.com (NASDAQ:PCLN) shares are trading over $463. Priceline is a leading Internet site for travel. The 50 day moving average is $437.80 and the 200 day moving average is $337.36. Earnings estimates for PCLN are $18.88 per share in 2011. The 52 week range is $173.32 to $474.74, so these shares are trading near the top. A trade for 100 shares of this stock or a single options contract is equivalent to almost $50,000!
Chipotle Mexican Grill Inc. (NYSE:CMG) shares are trading over $250. Chipotle is a leading Mexican restaurant chain. The 50 day moving average is $236.64 and the 200 day moving average is $191.94. Earnings estimates for CMG are $6.74 per share in 2011. The 52 week range is $110.71 to $275, so these shares are trading near the top of this range. A trade for 100 shares of this stock or a single options contract is equivalent to almost $25,000.
Apple, Inc. (NASDAQ:AAPL) shares are trading over $356. Apple is a leading maker of computers and mobile devices. The 50 day moving average is $343.90 and the 200 day moving average is $295.67. Earnings estimates for AAPL are $22.97 per share in 2011. The 52 week range is $199.25 to $364.90, so these shares are trading near the top of this range. A trade for 100 shares of this stock or a single options contract is equivalent to almost $36,000.
Google, Inc. (NASDAQ:GOOG) shares are trading over $596. Google is a leading Internet search engine. The 50 day moving average is $612.47 and the 200 day moving average is $546.53. Earnings estimates for GOOG are $34.52 per share in 2011. The 52 week range is $433.63 to $642.96. A trade for 100 shares of this stock or a single options contract is equivalent to almost $60,000!
Netflix, Inc. (NASDAQ:NFLX) shares are trading around $200. Netflix is a leading Internet site for movie rentals. The 50 day moving average is $203.01 and the 200 day moving average is $158.48. Earnings estimates for NFLX are $4.37 per share in 2011. The 52 week range is $67.82 to $247.55, so these shares are trading near the top of this range. A trade for 100 shares of this stock or a single options contract is equivalent to almost $20,000.
Out of all these names, the only ones I find to be of interest is Apple and Google. I view the rest of these names as overvalued and at risk for large declines. You can read why I believed Netflix reached a peak at over $240 here.
The data is sourced from Yahoo Finance and stockcharts.com. The information and data is believed to be accurate, but no guarantees or representations are made.
Source: 5 Companies That Could Be Considering a Stock Split