Eric,
from INTEL's press release:
intel.com
Intel's Board of Directors approved a two-for-one stock split to be effected as a special stock distribution of one share of Common Stock for each share of the company's Common Stock outstanding, subject to stockholder approval of an increase in authorized shares at Intel's annual meeting on May 21,1997. None of the share or per share amounts in this release have been adjusted to take into account the potential stock split.
So given shareholders approve the split, which I think they will then probably sometime in June we will see the stock split (see time of past two splits at bottom of post).
From Kiplinger's Magazine:
kiplinger.com
Stock splits: When less can be more
The market's record-setting run in 1996 could set the stage for a flurry of stock splits in 1997--good news for investors because a stock split is one occasion when the sum of the parts can end up greater than the whole. Stock splits themselves don't generate value; you still own the same proportion of the company. But history shows they can give a noticeable boost to the stock price. Stocks that have split tend to outperform the market in the first year following the split by an average of eight percentage points, and the trend continues three years after the split, according to David Ikenberry, a finance professor at Rice University. The market apparently interprets the split as a signal that management is optimistic and "sees an already high price getting higher," says Ikenberry. As with stock buybacks, dividend increases and improved earnings, stock splits also tend to boost investor confidence. A few Big Board stocks that may be ripe for a split are Exxon (symbol XON,
recent price $95), General Electric (GE, $95) and Mobil (MOB, $119).
However, INTC has had so many splits recently that Who really knows?
There have been two splits since I've owned INTC
2 for 1 on June 7, 1993
2 for 1 on June 19, 1995
Regards,
Brian Malloy |
