This is just CRAZY
PRIZ430
Posts: 306 ✭✭✭
NUGT is trading @ 13.25 today....And on Aug 14th...NUGT traded at 51.03.....Thats quite a drop...a 75% haircut.....in a month and a half time frame....While GLD has only dropped from 126.13 to 115.14 today....Yes...NUGT is a 3x bull.....but this drop is WAAAAAAAAAAAAAAY overdone!!!!!!!!
0
Comments
<< <i>ahh no biggie, they will do a 4-1 rev split and its right back at $51 or so... lol... >>
You are probably right....I am kicking myself everyday....had the trade order prepared to buy DUST @ 13.95 back in Aug .....I didnt pull the trigger because I had the same thought...What if they decide to do a reverse split???....Now DUST is @ $40.00.....Learning from that mistake....Will be buying NUGT in the next few days....
<< <i>What if they decide to do a reverse split???. >>
Splits mean nothing to portfolio value or to the stock's value. 50 shares worth $100 is no different that 5 shares worth $100 unless quantity is more important to the investor than value. Splits only serve the purpose of attracting more buyers because the stock price "appears" cheap while reverse splits raise the price to keep a stock from falling below the exchange's minimum price to be eligible for listing.
On the flip side splits are an indication of recent good performance while reverse splits are an indication of recent poor performance.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
<< <i>ahh no biggie, they will do a 4-1 rev split and its right back at $51 or so... lol... >>
I laughed because I've experienced this. BUT, it eventually came back.
It's probably more than coincidental that NUGT and DUST came into being within a year before the Sept 2011 gold peak. They got the sheeple to ride NUGT down while they rode the DUST train.