Steve,
The split was well anticipated, IMHO. Every time MXIM gets near this level it splits, and every time it split (this is the fourth 2:1 split in 5 years) it was announced after the stockholders' meeting and effective in December. Check it yourself: 1994, 1995, 1997, and now 1999.
As a matter of fact, I don't think that MXIM has ever traded in the $80s or above until recently -- I believe that it has aways split before reaching this level.
It is likely that the split is already priced into this stock. Of course, it is just as likely that it will trend up to $100 just before the split, at which point it will provide an excellent shorting opportunity, IMHO! Or, if you don't have the stomach for shorting, buy puts, or at least sell calls against the stock you are holding!
Good luck,
Greg |
