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ORCA

03/03/13 2:01 PM

#19838 RE: ORCA #19835

Announcement - Stocks often jump sharply on the split announcement, and may continue to increase in value during the following few days. RightLine email split alerts can give short-term traders who have yet to enter the stock a quick head start on a potential two or three day hold. The emails also serve as notice to those already playing the Pre-Announcement phase to check their positions and move stops higher to lock in profits.

Pre-Split Run - When a stock nears its split execution date, it tends to pull out of the dormancy stage, and accelerate as it heads into the split. This transition will start anywhere from 5-15 trading days before the execution of the split and includes the stock split record date. This five to fifteen-day window is an approximate period.


Split Execution - Stocks generally move higher quickly as they begin trading at the post-split price. The day of the stock split provides the final announcement to the public that the stock has split. Many investors who watched the stock rise at the announcement and again during the pre-split run will now buy shares at the lower split prices. These final buyers often push prices even higher.