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Technology Stocks : Lucent Technologies (LU)
LU 2.550+2.4%Dec 1 3:59 PM EST
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To: LWolf who wrote (1549)3/9/1998 4:07:00 PM
From: Rob L.  Read Replies (1) of 21876
 
Laura,

Your logic is flawed. You must look at the percentage gain. A move from 108 to 123 is a 14% gain but a move from 54 to 69 is a 27% gain and should, theoretically take more time occur. In your example, the comparable move from 108 to 123 would be from 54 to 61, not 69. Or in reverse the equivalent of 69 would entail a move from 108 to 138. if you buy at today's price of 108 and the stock splits to 54 and then rises to 69, that is the same as 138 (not 123). Do you see my point.

It is much harder and will take longer for a stock to go from 54 to 69 then from 108 to 123. You must look at the percentages not the nominal movement of the stock price.

It makes no difference whether you buy before or after the split. It's the percentage movement in the stock price not the nominal movement. As I said before, companies usually split the price to attract smaller investors who tend to look at lower priced stocks.
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