It’s time for some CEOs to consider stock splits for the sake of retail investors, “ Mad Money ” host Jim Cramer said Wednesday.
“I’ll be the first person to tell you that splits don’t actually change anything objectively, but they can make a difference subjectively in the eye of the beholder,” he said. “And I think we need them because these down-100-point moves are just too emotionally jarring for words.” (Related: Apple Investigating Stock Split: Top Analyst )
Cramer pointed out two stocks that took a beating: Priceline, down $115 per share, and Chipotle, which last month saw a 100-point drop.
Priceline, the travel-booking site, took a hit due to European weakness. “”But at the same time, there were plenty of good parts to the quarter that were overshadowed by Priceline’s stunning deceleration in bookings,” he said.
Chipotle, when it reported earnings in mid-July, last about one-quarter of its share price after it revealed a slowdown in same-store-sales growth.
“Sure, I can’t sugarcoat these disappointments,” Cramer said. “Priceline pretty much told you to sell the stock if you think Europe’s not coming back.”Page 1 of 3 | Next Page