$CMG Split and the Psychology of Small Numbers

$CMG

CMG 0.00%↑ announced a 50:1 stock split. The pre-market action is about 5% to the upside.

For simplicity, let’s assume the split takes CMG 0.00%↑ to about $60 per share. While splits don’t impact anything fundamentally, I firmly believe they’re impactful to share price dynamics. The rise of retail trading and options activity is fuel behind a share price that goes from a $3,000 price point to $60, regardless of the lack of impact on something like EPS.

So this stock will be on my watch list post split given the track record of relative performance, and an expectation that in the absence of any surprises, a continuation of the current bull market will probably gravitate this name back to $100 sooner than later.

Some other names to watch for splits are SMCI 0.00%↑ , and DECK 0.00%↑ , which are 2 recent index additions that have comparatively low float.