In general, I like it when companies that I track do stock splits. I completely understand that there should be no difference in the market capitalization of a company after the split.
However, the trading methodology that I describe in my book, The Confident Investor, performs better over the long term if the stock is under $100. This may be counter-intuitive, but since my method has the investor keeping the short-term gains of the trade in the successful stock, a lower priced stock makes it easier to accumulate stock.
Netflix Inc. [stckqut]NFLX[/stckqut] plans to split its high-flying stock 7-for-1, a move intended to make the shares more attractive to retail investors as the video streaming company presses on with an ambitious international expansion.
A dividend of six additional shares for each outstanding share would be paid out on July 14. Shares would begin trading at the new price the following day.