DS,
If NTAP wants to keep the price in the 50 to 100 range and increase liquidity, then a split makes sense. Especially if they think that future prospects look like the price is supported. If they feel that the stock price has gotten ahead of the company, then a split would be unlikely.
I remember the CEO of Uniphase stating last May that there would be no splits until the merger with JDS was complete. Two weeks after the merger, with the stock price around $100, a split was announced for September. So, obviously, they saw $50 as an o.k. stock price. Well, by the time September rolled around, the stock was over $200. So, around the earnings announcement in October, they announced another split for December. Again, by the time the split comes in December, the stock is around $150. Once again, with earnings in January, they announce a split for March. Well, again we're at $200, so I see another one for June.......that is if the company sees their progress supporting such a valuation of it's stock.
I guess what I'm saying is that for NTAP and JDSU I see split announcements as very bullish statements by the company. When they cease doing so at prices over $100, then it would signal to me that they see the stock getting ahead of the company.
Marc |
