I recently wrote to you about how the drop earlier this week GlaxoSmithKline wasn’t a big deal in the slightest, and how a hypothetical family in 2019 reviewing their reinvested GlaxoSmithKline dividends may actually look back fondly on the share price drop in the middle of Summer 2014 as it provided an opportunity to get a lower price, and thus a higher ownership position in the form of additional shares due to the decline.
Now, I want to discuss a company that does not share GlaxoSmithKline’s outlook. If you follow Amazon, you may have seen that the company reported a $126 million loss for the second quarter of 2014. Although the stock closed the day at $358 per share, it fell $38 in after hours trading to $320 per share, for a drop in the 10-11% range.
Here’s a quick, back of the envelope trick to help you figure … Read the rest of this article!