I have VF stock , the company is going to split . What does that mean for me ?

It depends on the split ratio.

Let's say you own 500 shares of VF and they announce a 2 for 1 split. On the day the split is effective you will now have 1000 shares and the share price will be one half of what it was the day before.

It doesn't affect the value of your holdings at all. You simply have twice as many shares. It is believed that the lowered share price will allow more people to buy the shares thus increasing daily volume and possibly the share price also.


Often times, the stock price will run up a bit in the days or weeks prior to the actual split date. You don't have to do anything.

EDIT: In the case of VFC it is a bit different. They are actually splitting the company into two different entities. So....when the split happens...scheduled for next year........... you will be given X number of shares in the new company based on how many shares you now own in the parent company.

As far as I can find......they have not yet announced the share ratio for the spin off. This is a spin off rather than a stock split.

So you will end up with shares in VFC and some number of shares in the new company. It is a tax free event so you won't be affected in that way.

If you now own 500 shares of VFC..@ $96 you may end up with 500 shares of the new company but both share prices will be reduced so your value remains close to what it is now. On the other hand....they can set any ratio they want for the spinoff. You may get a half share of the new for each share of the old.

You would STILL own 500 shares of the VFC but only 250 shares of the new company...and share prices would adjust to reflect that ratio.

You will have twice as many shares at half the value per share on a 2 for 1 split as an example. No real net effect from a split.

White beat me to it.

Exactly

Thanks Guys .

Would it be wise to buy more Vf ?

I'v invested everything I ever made in

TODAY

From what I saw this am on CNBC, VF is on a rocket. I wouldn't miss an opportunity to hit the cash register, depending on your position and profit level. I wouldn't liquidate my total position, but if I can ride free shares and play with the house's money, I always take that path.

Great investment! I wish you the best.

Only you can answer that one. Retail businesses are notoriously tricky because of all the variables affecting the economy in general. But even more than that....i would consider how fickle the fashion industry is. That is one reason they are spinning off the jeans segment of the company. It has not been performing well and is holding back the rest of the company.

I will admit my bias against retail just for those exact reasons.

A stock split is used primarily by companies that have seen their share prices increase substantially and although the number of outstanding shares increases and price per share decreases, the market capitalization (and the value of the company) does not change

To me it is an indicator of growth and opportunity: reverse splits are very bad therefore one would assume a forward split is very good.

I was just reading an article in Barron's from Jan. 29,2018.

Here is a line from that article and the link to it. It is a subscription site so you may not be able to open the link.

Here's the line:

"Some recent announcements from VF illustrate that effort. In November, for example, the company joined a group of companies that pledged not to offer products that used fur.



https://www.barrons.com/articles/can-a-clearer-purpose-lift-vfs-brands-1517245719

They announced splitting the company into two divisions not Same as a two for one stock split they are dividing the jeans shoes and hard assets into two separate companies

Here's an interesting link to their fur free stance. Read down it a ways to see some of the companies that have taken the pledge; companies like Wrangler, Lee, Timberland, etc..

https://www.vfc.com/news/press-releases/...r-free-retailer

When I meet these fur free people I like to ask them about leather. Most times they have no problem with leather. Then I point out to them that leather is the same as fur, but it just has the hair removed. Being anti fur is just a form of class-ism. Hypocrites.

Trading at 52 week highs, and a dividend of less than 2%. No thanks. I'd sell, take the profits, put into a better choice.

Northface going to Denver. Lee and Wrangler to stay in Greensboro, NC. Splitting into two seperate stock companies. We will get shares of each. Sometimes this works well for investors. Not guaranteed. GE has debated splitting up. Abbott labs did so very successfully several years ago