MFT - Mainfreight. Global Freight & Logistics

[macduffy]

If you want them in your portfolio, why not just buy them - IMHO. I will often buy companies I want over a period of time, add some anytime there is weakness, but I don't let the price stop me from taking an initial holding.

I'll second that strategy. I've bought many companies over the years that I thought were "too dear". I still have the likes of MFT, FPH, ATM, OCA, SUM etc in my portfolio.

[MauroNZ]

If you want them in your portfolio, why not just buy them - IMHO. I will often buy companies I want over a period of time, add some anytime there is weakness, but I don't let the price stop me from taking an initial holding.

Thanks Biscuit, it seems a reasonable way.

[Pricey]

I'd be very keen for them to do a share split!

[Gunner]

I'd be very keen for them to do a share split!

Why would that be beneficial?

[Swala]

It's a strange phenomenon, but people often feel more comfortable buying stocks when the purchase price per share is less even though the actual value is the same. Also, shares often tend to rise at a faster rate for a period of time after a split.

[Pricey]

As Swala said. A high share price is often a mental barrier i.e. the company looks expensive. A lower share price looks more appealing to small investors, although it has absolutely no impact on the value of the business. Take the recent Tesla and Apple splits for example. It's purely a psychological move.

[glennj]

As Swala said. A high share price is often a mental barrier i.e. the company looks expensive. A lower share price looks more appealing to small investors, although it has absolutely no impact on the value of the business. Take the recent Tesla and Apple splits for example. It's purely a psychological move.

Pretty much! In some instances having a much larger number of shares rather than fewer of the same value is a spur to liquidity with holders being more prepared to sell. No doubt there have been studies done on this and the other psychological aspects such as low versus high share price. Years of observation tend to confirm that share splits tend to have favourable impacts on share price growth beyond what maths suggest should happen.

[macduffy]

Years of observation tend to confirm that share splits tend to have favourable impacts on share price growth beyond what maths suggest should happen.

Since when did "maths" suggest what share prices should be/should have been? Should the shareholders of the likes of CSL resent the lack of share splits? Or is this a purely NZ thing and will MFT shareholders pay if their shares aren't split?

[nizzy]

I'd heard that founder Bruce Plested has a personal goal to get it to $100 a share, so why would he agree a split..He's doing OK so far, and I'm enjoying the journey. Great company.

[Pricey]

Doesn't sound like the Bruce I know ...