The board of directors of Stationary & Office Supplies informed the Jamaica Stock Exchange that they will meet on Wednesday, June 21st to discuss and consider whether or not to recommend a stock split to the company’s shareholders.
SOS is likely to split stock in 2023.
According to the release, “the market value of the company’s stock has been on a consistent growth trajectory and the liquidity of the stock is also a significant consideration.”
At the last annual general meeting the CEO, Allan McDaniel stated that they were reviewing the matter of a stock split on an ongoing basis but that trading in the stock was fairly liquid as such there was no need to make the adjustment then.
ICInsider.com gathers that the $20 was likely to be the trigger point for a split. Last week the stock traded at $24 but pulled back to $20 where it is now trading, but if history is anything to go by, the price is likely to climb in Tuesday’s trading. With profits for the current year likely to hit nearly $2 per share and around $3 in 2024, that could push the price between $30 and $40 this year and $50 to $60 next year, a split in the order of 10 could place the price closer to where Junior Market investors could find the stock reasonably priced and encourage greater trading in it. 
A 10 to 1 split would lift the issued shares to just over 2.5 billion units which would be within a level that would facilitate a great deal of liquidity for a number of years, but the price could be back in the teens again in 2024. Even a 5 for 1 would result in an enhanced level of liquidity with just over 1.25 billion units in issue and push it to 16th Junior Market company in terms of the number of issued shares and 6th if a 10 to 1 split was to be approved. The prospects of profit jumping sharply in 2024, if achievable and seen by management as likely then a 10 to 1 split would seem to be the better option.
The split if approved by the directors, would require ratification by shareholders at a general meeting and that is likely to be at the company’s upcoming general meeting.
The next stock split could well come for Cargo Handlers, with thin trading currently with the price now in excess of $20. Dolphin Cove seems to be shaping for a possible spilt as well but that would be more likely down the road.