Pham,
Great thing! Additional shares provide the opportunity for more people to own SMTC, allowing the price to fluctuate less as institutions move their large positions around. It should help stabilize the price of the stock a little over the long-term.
December 23rd is the official date of the split, when the price will be adjusted, and any shareholder of record will be issued the additional shares. That is the day to own the stock if you want to receive the additional shares. January 12th, 1998 is the approximate date the new shares will be distributed, after they are printed and prepared.
I have noticed that tech companies usually will not split their stock unless they have a rosy outlook on the future, especially for near-term prospects. This move suggests a lot of good things for SMTC, since the rest of the industry appears to be not as well positioned for future growth.
Todd, can you clean up any mess I made, and do you remember this?
>>To: john mcgourthy jr (146 )
>>From: Todd D. Wiener Wednesday, Aug 20 1997 7:38PM EST
>>The following chart shows a comparative appreciation between
>>TLAB, AOL & SMTC, from July 31, 1992 to the present. It's
>>basically a 3-way tie. This means that SMTC (and the other 2) have
>>outperformed ALL other stocks over this 5 year period. The
>>difference is that AOL's P/E is 150, TLAB's P/E is 50, and
>>SMTC's P/E is 32.
>>I'm anticipating an announcement of a split in the near future.
>>Todd
What took them so long? (Ha! They only acquired Edge, introduced several new product families, etc. in the meantime). I continue to be amazed at how well you have been able to feel the pulse of this company, it is like clockwork.
Regards, JB
P.S. John, good timing there on buying back in, did you get enough? |
