SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : America On-Line (AOL)

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Chuzzlewit who wrote (2016)1/9/1999 2:05:00 AM
From: Buffalo Bob  Read Replies (1) of 41369
 
Stock splits are relevant .....

I think we can all agree that a stock split does not change a company's fundamentals and does not increase the value of a share of stock.

However, companies that regularly split their shares are doing very well (revenues, earnings, etc.) and as a result have had their stock price appreciate. So basically a company will split its shares because the company is doing great. The company is not doing great because it split its shares.

But no matter what we believe, the fact is a company that announces a stock split usually has an immediate increase in its stock price and everyone knows it. This is a phenomenon that I don't understand and don't try to understand. I just try to profit from it.

AOL has now had 5 stock splits. They have split twice at the stockholder meeting and three times with earnings. They normally split when the stock is over $100. I guess we shall soon see.

Bob
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext