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Technology Stocks : Apple Inc.
AAPL 284.15-0.7%Dec 3 3:59 PM EST

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To: HerbVic who wrote (170691)6/9/2014 6:29:54 PM
From: Ryan Bartholomew  Read Replies (3) of 213173
 
the management of companies that split are planning on good times ahead. Right or wrong, they are in a better position to know than we are. So, … it follows that if a company you already like and are knowledgeable about announces a split, it's time to be on board.
Of course - companies that split generally do so because their share price has increased markedly. But by the time it is obvious and announced, that is factored in. You can't take the pool of splitting companies and use it to predict what impact the split itself will have post-announcement. It's impossible to extract the impact out wholly, so it's best to look at it logically. A split is literally meaningless to value. It *can* have a psychological (not rational) impact, but unless you think that psychology will trump actual performance *and* is predictable to time once announced (which is why I asked for your secret!) then best to ignore. If AAPL runs to $100 in short order, it has nothing to do with the split *per se*.
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