This is certainly some interesting news, with Japan’s SoftBank Group announcing that it will conduct a stock split after the earnings release today. The stock split will be 1:4 (1 for 4) and the timing of things is something to take note of, especially with the Nikkei having surged up to above 50,000 since the end of October.
If you look back to the last few historical stock splits by SoftBank, the timing of them have been rather uncanny.
- 28 June 2019 (1:2 split) – This comes several months right before the Covid pandemic crash in 2020, which saw the Nikkei plunge by 31%
- 5 January 2006 (1:3 split) – This comes right before the mid-2006 crash, which saw the Nikkei drop by 20% and then all before the global financial crisis crash hits in 2007-08
- 23 June 2000 (1:3 split) – This comes just as the Dotcom bubble bursts, but not before a further 53% crash in the Nikkei all through to the end of 2021 with further declines in 2002-03
Since bottoming out in April this year, the Nikkei has surged by over 60% to above 50,000 now. But did SoftBank just put a message out that we are at the top? And that there is a broader market correction set to take place in the near future?
Adding to that, SoftBank also just sold its entire stake in Nvidia for $5.83 billion. Something might just be brewing.
This article was written by Justin Low at investinglive.com.