The Motley Fool: Looking for stock splits

Ask the Fool: Looking for Stock Splits

Q. Where can I find a company’s stock splits? —JP, St. George, Utah

A. Start with the horse’s mouth, calling the company’s investor relations department and asking. An “Investors” section of the Company’s website may also contain this information. Or go to Finance.Yahoo.com and type in the business symbol; you can then click on “Statistics” and scroll down to see the company’s last split and its date, or click on “Historical Data” to find many past splits. Searching online for “stock split schedule” will show you recent and upcoming splits.

Don’t get too excited about the splits, though. They can be pretty exciting, but they really aren’t that meaningful. Yes, a regular stock split will suddenly leave you with a lot more shares – but the stock price will have been adjusted down proportionally. So if your 100 shares have become 200 or 400 shares, your previous stock price will drop from, say, $40 to $20 or $10, respectively, leaving the total value of your investment unchanged.

Q. Warren Buffett’s mentor, Benjamin Graham, is quoted as saying, “In the short term, the market is a voting machine; but in the long run it is a weighing machine. What does that mean? — YG, Homewood, Alabama

A. When measured in days or even months, a stock’s price reflects its popularity, with investors “voting” by buying and selling, driving prices up and down. Hot stocks will rise in price, while undervalued stocks will crash. But over time, the price of a stock will reflect or approach the value of the underlying business, depending on factors such as revenue, earnings, and projected growth rates. The true intrinsic value of a stock is what really matters, making it a smart long-term investor.

Fool’s School: Turn your children into investors

One of the best gifts you can give your kids is to help them become money savvy. Here are some ideas:

  • Talk about money regularly. Show your kids how you make financial decisions and strive for financial goals, and even how you pay your bills. Discuss your successes and challenges. Help them find out what things like housing, utilities and gas cost.
  • An online search for “Money as You Grow” will bring up a Consumer Financial Protection Bureau site filled with activities, educational tips, and resources for kids of all ages. Young children can also learn from the “Warren Buffett’s Secret Millionaires Club” cartoon series, which is on YouTube and elsewhere.
  • Trick kids into investing in stocks through a fake wallet. Whether on paper or through an online portfolio tracker (available on sites like Finance.Yahoo.com), gather a group of publicly traded companies that your kids know and admire, including their ticker symbols and stock prices. actions on the day you add them. (Candidates may include Amazon, Apple, Coca-Cola, Costco, Disney, General Motors, Hasbro, Mattel, McDonald’s, Microsoft, Netflix, Nike, Starbucks, and Walmart.) Imagine they bought stock, then start tracking news companies and check their quarterly reports, see how stock prices fluctuate and fall or rise over time. Show them how much their investments would have yielded; point out that long-term results are what really matters and that even large companies can collapse within months or even a year.
  • Let your children invest. When you think they are ready, you can help them start investing through an open deposit account at a major brokerage. Or be less formal and buy a few shares under their guidance in your own account. Children can also fund Roth IRAs if they have earned income (even through childcare).
  • Finally, have them check out our book, “The Motley Fool Investment Guide for Teens: 8 Steps to Have More Money Than Your Parents Ever Dreamed Of,” by David and Tom Gardner with Selena Maranjian (Touchstone, $17).

The chips fell…

Shares of semiconductor giant Intel (Nasdaq:INTC) recently fell nearly 37% from their highs of a year ago. Why? Well, in addition to global inflation fears, Intel is grappling with a long global shortage of semiconductor manufacturing capabilities and materials, and smaller rivals such as Advanced Micro Devices and Nvidia are eating away at its biggest share of market in key sectors, such as data center products. .

Intel has been around since 1968, building a unique legacy and massive infrastructure. The company – often referred to as “Chipzilla” – had $38.7 billion in cash and short-term investments at the start of April and generated $9.7 billion in free cash flow over the course of the year. It’s a fantastic slot, and management isn’t shy about putting that cash to work in the form of new or upgraded chip factories.
Right now, the company is bolstering its manufacturing facilities like never before – for example, building a $20 billion chip factory in Ohio (although that may be delayed).

Intel has been down several times before, but the company is always finding ways to bounce back. With a recent price-to-earnings (P/E) ratio of around 7.6 (vs. its five-year average of 13.1%) – and with a generous recent dividend yield of 4.1% – this semi -leaders down but not out should appeal to long-term investors looking for promising value. (The Motley Fool owns Intel stock and recommended Intel stock and options.)

— distributed by Andrews McMeel Syndication

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