Maybe not all companies want to try the "high price stock" game. Tonight, Suncor Energy Inc. (NYSE: SU) announced it would pursue a two-for-one stock split. With a price at $102.84 it isn’t too hard to figure out why it would want to split its shares.
If this adjusted instantly we would see a $51.92 price, with twice the number of shares. Suncor last split its shares in May 2002 and shares have risen nearly 300% since then. Before that, it announced two-for-one stock splits in 2000 and in 1997. Its U.S. market cap is listed as being $almost $47.6 Billion.
The company does require shareholder approval, which will come up for vote at the April 24, 2008 meeting. Unless there is some hidden tragedy, you can consider this a shoe-in to be approved by holders. This was one of the companies that was a beneficiary of last year’s "raised oil super-spike price band" out of Goldman Sachs.
Suncor Energy Inc. is a Canadian integrated energy company operating in Oil Sands, Natural Gas, Energy Marketing and Refining, and Refining and Marketing. It is headquartered in Calgary, Alberta, and its 52-week trading range is $67.78 to $117.98. Shares closed flat at $102.84 today on over 2.1 million shares, yet shares are up almost 1% at $103.85 in after-hours.
Jon C. Ogg
February 27, 2008