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Technology Stocks : RadiSys Corp
RSYS 1.720+0.6%Dec 11 4:00 PM EST
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To: Tnsplyr who wrote (541)4/9/1997 11:49:00 PM
From: Richard Karpel   of 1472
 
>>>I appreciate the information from your point of view. What do you make of the talk concerning Radi splitting its stock to raise more money? Do you see pros and cons of splitting at its currently depressed price? Do you see it splitting at all?<<<

First, a stock split doesn't raise any money -- it just creates twice the number of shares at half the price.

Second, I have no specific information about the potential for a stock split, but it's hard to imagine the company is thinking of splitting the shares at the current price.

In general, a stock split has no effect on the fundamentals of a company, and therefore has no effect on the long-term outlook for share price appreciation. Sometimes, in an up market, a stock split has a slightly positive short-term effect -- but then the market always acts irrationally from a short term perspective.
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