Yesterday Ricoh (OTC: RICOY) split 5 for 1, reducing its price to less than $10 while increasing its share float five-fold. As a result we are reducing our Buy Limit Price for RICOY to $12, and the Stop Loss Price to $9.00. If you have any active limit orders for RICOY with your broker then they should have adjusted all of them automatically, but since its trades over-the-counter you may want to double check just to make sure those prices have been adjusted to reflect the split.

Quite frankly, we are encouraged by this development. One factor holding Ricoh’s stock price back has been the relative paucity of institutional investors and mutual funds owning the stock, in part due to the relatively small “float” (number of shares outstanding) that limits liquidity. Large investors are uncomfortable taking a large position in a thinly traded stock, fearing the possibility of trying to sell the stock in the future which may drive the price down even further. This split should make the stock much more accessible to investors of all sizes, so we expect to see it drive higher over the remainder of 2015 as it is gradually accumulated by larger investors who have avoided it in the past.

We reitrate our buy recommendation for Ricoh up to $12.