Re: If AMAT still had 800M shares outstanding the stock price would be $40+ right now based on PE, PS, growth, margins etc..... there would be a premium value assigned which is currently missing
I think you should not confuse a personal theory with facts.
And I assume that you are saying that GE, MSFT, CSCO, INTC, and EMC are acting against the best interests of shareholders when they split the stock and the number of outstanding shares rises above say 1 Billion?
The fact that the number of shares doubles is absolutely meaningless....what matters is EPS and EPS alone. And since this is split in half once a stock splits, I really do not see any merit to your theory.
Re: Less gold available, the value becomes worth more if demand warrants it..... This applies to oil, diamonds, etc., why do you fail to see this with stocks outstanding?Ever hear of the concept of SUPPLY AND DEMAND?
Yes I did....notice how even with Warren's exemplary performance over many years, AMAT has outperformed them with many splits, while Berkshire has had zero splits. Why? It's the EPS and EPS growth which really matters. Not a number assigned to a piece of paper. Do the same comparison with MSFT, INTC, CSCO and the rest and you will see similar comparisons. Your theory holds no water, or the lines would crossover, or at the very least they would meet, with additional splits. This however is not the case. Berkshire has never increased the pool of their shares, and yet AMAT has outperformed them at nearly every timeframe.
finance.yahoo.com
Brian |
