SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : Applied Materials No-Politics Thread (AMAT)
AMAT 230.92+3.1%Nov 24 3:59 PM EST

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Big Bucks who wrote (10200)6/10/2004 1:25:05 PM
From: TimF  Read Replies (2) of 25522
 
Would I buy microsoft as a long term buy and hold, not likely....why? Because, even though it has great margins, products, market dominance, etc., it is in a mature and relatively saturated market....growth rate is slowing. It takes a lot of profit to move the price up due to the amount of shares available. The stock becomes sluggish like a beached whale, it flounders around but doesn't move
much. Because of it's size (outstanding stock) it
loses its' mobility.


If Microsoft did a 100 to 1 reverse split it would be no smaller or quicker. It would take just as much profit to move the price up. Yes it would take less additional profit to move each share up $1 but that fact is meaningless. Is the percentage gain that is important. It doesn't matter if you gain 10% by having 1000 share go from $1 to $1.10 or if you gain 10% by having 10 shares from from $100 to $110. If Microsoft really is a "beached whale" it would be just as much of a "beached whale" after the reverse split.

Tim
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext