Formerly About Applied Materials Message Board

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Politics : Formerly About Applied Materials

AMAT 267.87

-0.6%

Dec 5 9:30 AM EST

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To: Chi-X who wrote (9195)	10/22/1997 8:16:00 PM
From: Steve Byers	Read Replies (1) of 70976

THERE IS NO TENDENCY to retrace to presplit prices... don't be fooled... unless you think earnings double, the number of shares double and the shares trade on expected earnings... there is an extraordinarily small, to the point of being almost insignificant correlation between splits and dividend increases on the price increases of stocks... there is research on this and I had to build pricing models for PW on security pricing behavior a couple of years ago... and had a research dept head, PHd, who is now a dept chairman at William and Mary do the research and seek out previous work... you can call him if you like, his name is George Oldfield... former head of Research at PW... but trust me on this...there is NO "tendency" to retrace price movement to old presplit prices... none, nada, zippo... companies who split have to keep earnings momentum/growth in order to continue increasing share price... increaing market share in a growing market, all the standard investment stuff... good luck...

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