unclewest, I agree with you about a split not affecting fundamentals. However, and this is a big however, a split certainly affects investor perception, and in this market that is critical. Look at qcom. They waited too late to split, and when that 1000 price target was announced, with the stock at around 700 or so, the press and cnbc played it as a ludicrous target. Post-split, a target of 250 with the stock in the upper 100's or lower 200's would have seemed like no big deal.
A 3-1 split would bring the price down under 100, which for a company with market cap under 10B seems about right.
Again, I realize this has nothing to do with fundamentals, or with the company's value. However... |
