Intuitive Surgical, Inc. Might Just Be The Next Stock Split
We are two weeks away from Apple’s stock splitting 4 for 1. On August 31, trading will begin on a split-adjusted basis, so say if Apple drops to $400 on August 31, each stock will start trading at $100. Apple's upcoming stock split will be its fifth. Apple had splits of 2 for 1 in 1987, 2000, and 2005. Then it split its stock 7 for 1 in 2014. And later this month we will see a 4 for 1 split. Apple said the stock split will allow Apple’s stock to appeal to a broader base of investors.
Following Apple announcing their stock split, this past week, Tesla announced a split of their own. Later this month as well, Tesla id doing a five for one stock split. Tesla also said that the split is intended to make stock ownership more accessible to employees and investors. The split announcement comes after a sharp rally in the Tesla stock. Earlier this year, the stock was trading in the $200s, now Tesla is one of the world’s most valuable companies, the most valuable car maker and in the process, made Musk pass Buffet in the list of the richest people in the world.
The stock split, in which a company increases substantially its number of outstanding shares while preserving its market value, will attract and give more ownership access to retail investors whose investment options may be more limited to low-dollar stocks, the “Mad Money” host said, directing his message to some of the leading tech executives.
“In short, splits are good for home gamers, bad for professionals” and “we know what happens after the split. This new cohort of investors, the ones who love low-dollar amount stocks, will start buying and holding these best-of-breed names rather than the darned penny stocks,” Cramer said.
Below is a list of companies, that Cramer would like to see divide their existing shares into new shares and boost liquidity:
- Amazon
- Alphabet
- Chipotle
- Netflix
- Nvidia
- Adobe
- Costco Wholesale
- Home Depot
- Microsoft
A company Cramer didn't mention was Intuitive Surgical.
Intuitive Surgical, Inc. designs, manufactures, and markets da Vinci surgical systems, and related instruments and accessories. Its da Vinci Surgical System transforms the surgeon's natural hand movements outside the body into corresponding micro-movements inside the patient's body.
Intuitive Surgical, Inc. has been at the forefront of robot-assisted surgery for more than two decades. The beauty of their products is they allow quicker recovery times for patients undergoing surgery through minimally-invasive surgery which lower the bill for all parties involved.
I get it, Intuitive isn't a household name and doesn't create for great entertainment, but the stock price is higher than most of the stocks on Cramer's list. Actually, Intuitive is approaching $700 and is in the top 10 stocks in terms of share price that is traded on the Nasdaq. In addition, Intuitive did a 3-for-1 stock split in Oct. 2017, so they are no stranger to stock splits.
In the near future, Intuitive may have to play nice in the sand box when J&J's robotic surgery program hits the market. But we are talking between 18-24 months and even still J&J will have to get regulatory approval. Thus, in the meantime, the chart suggest to buy Intuitive at the weekly demand at $560.
This post is my personal opinion. I’m not a financial advisor, this isn't financial advice. Do your own research before making investment decisions.
Posted Using LeoFinance
