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Technology Stocks : Microprose, MPRS

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To: Marc Bell who wrote (508)4/20/1998 12:43:00 PM
From: Randy Tidd  Read Replies (1) of 633
 
> For the short term, it appears that almost everyone on Yahoo sees
> the Reverse split as some real bad news for the short term price.
>
> I'm tending to agree with them as there is nothing here to hold up
> the stock price.

I don't see what the issue is -- stock splits (and reverse splits) are purely psychological. If the stock reverse-splits 5 to 1, all of the fundamental valuations (i.e. price/sales, price/book, EPS, float, etc) will also change by the same factor. Berkshire Hathaway stock currently trades for around $71,000 per share, but that doesn't mean it's super overvalued, they just don't believe in stock splits.

Randy
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