American Green Group, Inc. (AMNE)

[locksflooring]

AMNE and Its Forward Split - It ain’t over till it’s over, baby!


July 22, 2009 | Kai | Comments 0
Almost without exception, forward splits have a very peculiar effect on the price of the shares. Companies often to pay dividends either through 1.) traditional dividends (shareholders receive income), or 2.) Forward/Reverse Splits, as a means to reward long term investors. In both cases, stocks almost always rise up, but even moreso with the latter.

What’s so surprising about forward splits is that the stocks almost *always* equals the same price *after* the shares are expedited. It’s quite an interesting phenomena. Thus, in a 2-1 forward split, the returns in fact *double*, in a 5-1 split, they multiply by 5 times, and so on and so forth.

Why does this phenomena occur? I’m not quite sure myself, but it’s almost a universal rule of thumb. Remember, most investors are long-term investors and not traders. In a sub-penny stock like AMNE, it really means a lot for *both* investors *and* traders. Splits increase the legitimacy of the company, and I really do think AMNE has a lot of potential for the long term.

AMNE’s forward split will occur on August 1st. Let’s wait it out and see what happens this week and next week. I’m excited! Buying more shares, despite the naysayers - I’ve proven them all wrong so far, so let’s wait and see!

Posted with permission from

http://www.penny-picker.com/blog/2009/07/22/amne-and-its-forward-split-it-aint-over-till-its-over-baby/

Disclaimer

This post and it’s entire contents is for my use only. It is not a recommendation to buy or sell any of the stocks/securities listed. I am not a registered Financial advisor and might have positions in one or more of the