Quote:
Originally Posted by kscarrol
When any stock/share does a split the number of shares changes but the value, in theory doesn’t. Your 24 shares should in theory be worth the same in dollar terms as your 607 shares were. The UCO is a two times levered oil fund meaning you will earn twice the return of oil, whether that is to the upside or the downside. Given what is happening in oil markets the returns have been awful. Often times exchanges have a minimum share price that must be maintained or the shares can be de-listed so that may be reason for the reverse split.
Whether you should cut and run really depends. Where did you buy?
Edit: if I’m reading this right you bought 607 shares at $1.83 which is a little over $1,000 invested and you now own 24 shares @ $16.42 or $342 so you are down quite a bit which is not surprising given the 2x leverage and the fall in oil prices. Your 5 year average math implies oil returning to the $50 range which is a tough uphill climb. Given the small dollar I might let it ride but that’s me.
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