RE: "Does anybody have any thoughts to why Iomega would split its stock with it trading in the 30's?"
From the press release:
"...David J. Dunn, chairman of the board of the company, stated, ''The principal reason for the stock split is to increase the
number of option shares available to recruit and retain the company's growing employee population. Since Jan. 1, 1996,
Iomega's employees have grown from approximately 1,700 to approximately 3,700 as of Sept. 30, 1997.''
Dunn added that, ''The stock split not only gives the company the additional shares that it needs, but also allows the company
to make option grants to new employees at levels consistent with its historical grants.''....
i've seen $10 stocks split. Splits are often done for accounting reasons. The thing to watch for, IMHO, is reverse splits: i have never seen a company reverse split and not continue to go down. With the new Naz $1 min bid rule we should see lots of penny stocks (that couldn't be shorted by most people) doing reverse splits to get their price up. Pick any one to short and watch it fall! XCL (on the AMEX)is a good example: falling, 1 for 15 and still falling. |
