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Politics : Formerly About Advanced Micro Devices

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To: Scot who wrote (112770)5/25/2000 3:30:00 PM
From: tejek   of 1581271
 
Do you have any thoughts on whether this will in fact be a 3 for 1? Besides the obvious mathematical calculation of the dividend if all authorized shares were used, what are the reasons (if any) for not doing a 3 for 1? Secondary offering?

-Scot,

For a split to be successful, the company needs to be on a roll earnings and revenue wise. Nothing tanks a split and the stock faster, than a slowdown in growth just as the split takes place....to whit, Dell in Feb last year. It only results in significant dilution. BTW you have to ignore the last few months where every split seemed to work no matter what.

A couple of months ago I would have thought a 3 to 1 split was risky but might work. Now I am much less confident, and I think that a 2 to 1 has a better chance of being successful. These are not the times to be too greedy IMO.

Besides I am sure AMD wants extra shares for options and the like.

ted
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