FM, First Quantum , 5 to 1 stocksplit Aug 9, was it necessary?

fm june 2011

Here was our chart from June 22. It shows the ubiquitous B wave loud and clear. Management clearly does not read my blog, or they might not have gone for a 5 0 1 split on August the 9nth. The stock had just peaked at about $140. Here is today’s chart adjusted for the split;

fm sept 23 2011

You have to look closely. The stock closed at $13.71.  It will go to, at least $10 but probable a lot further at which time the company will do a reverse split , if for no other reason than that they want to keep the stock marginable! The moral of the story, time solves all problems and you should read my blog.