In what may be one of the more convoluted stock split announcements I've ever heard of, NetEase
In short, this is a 4-for-1 stock split. With NetEase's stateside trading price approaching triple digits, it's a logical move even though a share split obviously doesn't alter the underlying fundamentals.
The key here is that most of the actively traded China-based stocks are trading in the low-double digits. Back in 2002, NetEase was joined by Motley Fool Stock Advisor pick SINA
Earlier this afternoon, the disparity was clear just by pulling up a quote on all three companies.
At current prices, NetEase's 4-for-1 stock split would bring it right back into the pack, with shareholders clearly not smarting over now owning four times as many ADRs as they used to.
At least NetEase was able to orchestrate its stock split. Last year, Baidu.com
NetEase's all-time high? You're soaking in it. This morning's stock split news found the stock reaching new heights today. The shares have soared 88% higher since being recommended to Motley Fool Rule Breakers newsletter service subscribers 15 months ago. Healthy growth and better-than-expected results got this company this far. Today's split-based spurt? Well, that's more of the synthetic kind of boost, but I trust that investors will take it any way the market doles it out.
Longtime Fool contributor Rick Munarriz has been a fan of China's high-margin gaming stocks for a long time. He does own shares in Baidu. T he Fool has a disclosure policy. Rick is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early.