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Technology Stocks : Advanced Micro Devices - Moderated (AMD)
AMD 231.83+1.7%Jan 16 9:30 AM EST

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To: dougSF30 who wrote (228160)3/16/2007 12:19:59 PM
From: Mark O. HalversonRead Replies (2) of 275872
 
While a 2:1 stock split would send stock price from $14 to $7, doubling the stock float by stock sales would not change the price.

My short post above, was meant to be an "all things being equal" sort of statement. True, for real world situations things are never truly equal. But one has to isolate the (say) "double the stock float by stock sale" from everything else going on at AMD as a starting point for discussion. Monies from stock sales would generate earnings from debt interest savings and return on investment. In the real world, everything else not being equal, whether magnitude of such added earnings would raise, lower or keep earnings per share (of the now doubled number of shares) constant, depends on AMD's execution. Everyone here has his/her own scenario on that aspect, many of which have already been posted.

Best, Mark
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