AMAZN Wheel - Post Spilt - AMZN

[internetkings]

Much like the Google Spilt / Wheel Idea

Google Share Spilt Wheel Idea - Mid July

A few of us were discussing this on the trading floor - so I thought I would post it. Few Key Notes - The change requires shareholder approval. Each shareholder at the close of business on July 1 will receive, on July 15, 19 additional shares for each share of the same class of stock they own. Currently - it would take an investment of $300,000.00 to wheel Google - After the Spilt assuming it is approved - at the current price, it would be $15,000.00 investment This play comes down to capital management, and where you predict Google to be in July - You could watch the dips, and acquire 5 shares of google between now and the end of June - this assumes you think the price of Google will be better after the spilt and the capital can not be used somewhere else to better effect. In a smaller account a goal of 1 share a month starting in Feb - should reach the goal, though please keep in mind it is basically dead capital until mid-July. You could also buy 100 shares after the spilt - for the current market price. As for Class A or Class C - it is voting rights vs non - I think someone else might be better to explain that aspect if it is a concern.

Amazon announced a 20-1 stock spilt along with a 10 billion share buyback

Amazon announces 20-for-1 stock split, $10 billion buyback

This creates an interesting Wheel Opportunity.

As of the close today, you would need - roughly $297,400.00 to run a wheel on Amazon
Based on the quote from CNBC you would be able to do so with around 13,900.00.

“Were the split to happen as of Wednesday’s close, the cost of each share would go from $2,785.58 to $139.28, and each existing holder would get 19 additional shares for every one they own.”

Now keep in mind the 10 billion share buyback is likely to make the stock run a bit, the spilt is intended to happen on June 3rd.

As it has been mentioned several times before the best Wheel is a stock you don’t mind owning long term, from my perspective AMZN fits this criteria.

[internetkings]

@rexxxar - I think we can close this one

[SuckyMayor]

You got it!