All three Lasco listed companies that approved a 10 for 1 stock split at Extraordinary General meeting on June 26, 2013 will see the stocks trading at the new split price of less than $2 per share on Friday. The record date for the split is in the 9th of July which is not significant.
Stock split by the numbers | Lasco Manufacturing will have 4.087 billion shares available to trade, Lasco Distributors 3.3664 billion shares in issue and Lasco Finance 1.228 billion shares. At the close of trading on Wednesday 3rd July 2013, Lasco Manufacturing closed at $16.50, Lasco Distributors at $17 and Lasco Finance closed at $12.77. Based on these closing prices, it is not possible for the stocks to close above the equivalent of $2 on Friday.
Improved results for the first quarter of the 2014 financial year, which ends next year March, could help push the prices up when released in early August. However, early fervour after the split on Friday could well move prices to the extent that only exceptional results can move the stock prices higher.
[…] 4th July 2013 | One question on investors’ minds is what will be the market’s reaction to the 10 for 1 stock split of the three Lasco companies when trading starts on Friday with the new share structure. In today’s trading all three stocks […]