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Technology Stocks : Y2K (Year 2000) Stocks: An Investment Discussion
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To: P. Ramamoorthy who wrote (11071)4/19/1998 5:39:00 AM
From: giddy guru  Read Replies (1) of 13949
 
//gg//

P.Ramamoorthy, you wrote:

At the last closing price of 52, SYNT is selling at a P/E of 133. However, after the 3/2 split on Apr 22, a price of 34 would fetch a P/E of about 89


Wrong! P/E will not change just because the stock has split. When price is adjusted for the split, the eps is also adjusted to account for more shares.

/gg/
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