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Technology Stocks : IDTI - an IC Play on Growth Markets
IDTI 48.990.0%Mar 29 5:00 PM EST
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To: flickerful who wrote (6347)2/9/1998 2:54:00 PM
From: Rob S.  Read Replies (1) of 11555
 
Off topic -

I've noticed that the market has been reacting very positively to stock split announcements. I recently purchased and sold stock in Infocus (INFS) on news of better than expected earnings. The company subsequently announced a stock split and the stock has moved up over 35%. That got me curious about how the market is treating other stock split announcements. Here's one site that compiles recent split announcements;

e-analytics.com

Take a look at the performance of these stocks over the past several days. The average is up something like 14%. If you screen further for favorable sales and earnings growth trends, etc., the performance would be even better. Out of the entire list, I found only one stock that was mildly down.

I think that in this market in which earnings growth is a concern and the market is tetterring between being positive and being nervous about future prospects, that stock splits give the clear indication that the company expects higher earnings and revenue growth that the market wants.

I've also noticed that the insider sell/buy ratio has improved to be very positive. Although some stocks are still selling off, the ratio has improved to about 2:1. The normal ratio is 3-4:1. That tends to forecast a favorable market 3-12 months out.

So some confidence has shown up in this "stock pickers market" that counters the worries and helps particular stocks move substantially higher.
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