Why would a split bring more owners? Is small investors’ buying now dependent on a share costing less than 50 euros being too expensive per unit? If it were split 1:3, the unit price would now be 16 euros. Through which broker should one even make 16 euro one-time purchases (brokerage fees)?
I understand the impact on liquidity for something like a $3000 Amazon share, but does it really have an impact at a unit price of 50 euros?
Another question, of course, is investor psychology. I believe it might even be a more important perspective than liquidity. Even here on this forum, one quite often encounters messages where shares are priced relative to each other based on the share’s unit price.
I don’t oppose the split. Apparently, even some researched data supports the split to some extent. I slightly questioned the impact of the unit price on liquidity at these unit prices, but I’m happy to be wrong: welcome to all young people, even those who own only one share, regardless of the unit price.
As for the number of shares, it shouldn’t matter to anyone (other than from a liquidity perspective) whether one owns 20 shares at 5 euros, 10 shares at 10 euros, or 2 shares at 50 euros of a company. Unfortunately, our education system doesn’t teach these basic investing principles, and one might even hear arguments on forums that a machine is twice as expensive as Sampo when one costs 70 and the other 35 euros. But if we can’t fix this, let’s benefit from it - so, bring on the split!
Nordealla it works: buy one share for 16e, brokerage fee 0.16e or one percent. The 1% fee cap applies to share and ETF trades under 800e.
Greetings from a satisfied Nordea customer & shareholder (both directly and through Sampo)
The effect of splits on share prices has been studied; my impression/recollection is that it tends to have a positive effect, meaning it boosts the price, despite the fact that a lower unit price doesn’t affect the share price in terms of valuation (ceteris paribus), as was noted in the thread.
Is there research on this that would show this to be true in the long run? Surely over time, the stock’s valuation will follow the company’s ability to make money. I myself think that splitting into very small unit prices might just cause unnecessary volatility and other unnecessary noise.
My memory: a maximum of 1 year before/after the split, only the course-boosting effect. It starts with the split announcement, “since splitting once boosts the share price, I’ll buy before the split”… does it partially go into momentum’s account?
However, I trust that in the longer term (at least a year, and yes I know, that’s a short time in these matters), the development of the company’s business will determine the share price development, and certainly not investors’ future guesses affecting the supply and demand balance.
Would I soon get my first flag? This matter will soon have nothing to do with Olvi anymore, except for speculating about Olvi’s stock split…
Agreed! And let’s await the splitting of Olvi’s (Olvi) very well-developing share, refreshing ourselves with Olvi’s products (which will happen during the Easter weekend, for example, in the embrace of heat generated by Harvia’s (Harvia) product), and enjoying the promising profit distribution that’s heading towards dividend aristocracy!
My stock holdings do influence my consumption habits, meaning in this case Sandels, and why not A Le Coq too, it all goes into my own pocket regardless.
However, the small number of Olvi shareholders might not directly correlate with the broader consumption of Olvi products; otherwise, Olvi would be just a tiny kiosk, wouldn’t it? Of course, favoring “one’s own company’s” products can direct one’s consumption, as it does for me. As popular capitalism increases, could the development change in the direction you assume?
That’s probably not completely up to date, but according to it, there would be about 15,000 owners. So quite few indeed.
And the atmosphere here in the Olvi (Olvi Group) thread is, for a change, even refreshingly frosty. In some other thread, flags would have been waving a lot But as @CoktailJet aptly noted, nobody reads this thread At least not before today.
Yeah, I could summarize my position by saying that I have nothing against splits. They are quite good for the stock price. Saario also seems to agree. I’ve noticed this with Kesko, and also with Neste.
And indeed, Nordea’s fees are 1% up to 800 euros, so it’s all the same in terms of fees even if you only buy one share at €0.15. I have three young people who have just started investing, and they think a €50-60 share is “too expensive.”
Olvi has been the most consistent performer (in terms of appreciation) in my portfolio for years. My ownership definitely influences my drink choices. And of course, when new products come out, I have to monitor their quality.
And as a small/poor investor, the number of shares also matters; if you have 2 shares, you can only lighten your ownership by 50%, whereas with 10 shares, you can lighten it in 10% increments. For a normal investor, with tens or thousands of shares, this naturally doesn’t matter as much.
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Yeah, slow and steady wins the race. I jumped off at 42.7, and the train doesn’t seem to be coming back for me, no matter how much Sandels and Helsinki Gin I drink.
This is a strong company. Great Q1 results were published today. Hopefully, when the V-Russian (Vladimir Putin’s Russia) currency recovers at some point, oh my, oh my…
Olvi’s operating profit growth was also influenced by “improved production efficiency.” As the HoReCa (Hotel, Restaurant, Catering) sector recovers from restrictions caused by the coronavirus and sales grow, operating profit will likely increase significantly due to improved production efficiency?
Olvi will acquire a majority stake in the Danish brewery company Bryggeriet Vestfyen through a conditional agreement and will make a tender offer for the minority stake.
And let’s await the splitting of Olvi’s (Olvi) very well-developing share, refreshing ourselves with Olvi’s products (which will happen during the Easter weekend, for example, in the embrace of heat generated by Harvia’s (Harvia) product), and enjoying the promising profit distribution that’s heading towards dividend aristocracy!
But as 
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