On 12-16-99, SILI announced that they were going to split 3 for 1 for shareholders of record on 2-17, to be paid on 2-28. There is a shareholders meeting today. At the meeting, the number of authorized shares will be increased from 10 million to 100 million and the split will be approved. I expect that there will be a news announcement either this evening or tomorrow that will confirm the split.
siliconinvestor.com
The day prior to the split announcement, SILI closed at $89 and change. On the morning of the split announcement, SILI gapped open to $121 or so. Since the split announcement, SILI is up around $180 per share.
Obviously, SILI management though that the $90 price was high enough to justify a 3 for 1 split. At the current price ($270), SILI will be again be around $90 per share, post split. If SILI earns the $12 per share that many expect this year, a 40PE will give it a $480 (pre-split) price and a $160 post split price. Frankly, think that there is better than a 50% chance of earnings closer to $13 to $14 per share this year. You can do the math.
After this split, SILI will have approximately 30 million issued shares and 100 million authorized. I think it is more than a coincidence that there is room left in the authorized shares for another 3 for 1 split, i.e., 30 million to 90 million. If the company and the stock price continue to do well, as I expect, another split will be justified.
Troy |
