Intel Corporation (INTC) Message Board

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Technology Stocks : Intel Corporation (INTC)

INTC 48.26

-0.7%

Feb 5 3:59 PM EST

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To: jack c rains who wrote (9649)	1/30/1997 7:42:00 PM
From: Michael Rich	of 186894

Hedge everything with IBM puts? There are some other people agree with you... From San Francisco Chronicle: IBM's ominous news: This column's resident bull-turned-bear, Rick Eakle of Ea kle Associates in Fair Haven, N.J., has added IBM's announcement yesterday of a 2-for-1 stock split as the latest piece of evidence that the market is headed for a tumble. He says IBM's stock has tumbled an average of 45 percent within one ye ar of each of its three prior splits. And considering the big role it plays in the Dow Jones industrial aver age, it would be fair to say that as goes IBM, so goes the market. What about all of those academic studies that suggest stocks tend to b e higher a year after a split? After all, stocks rise to levels where a split looks attractive because of booming busin ess. But in the case of IBM, Eakle suspects earnings are probably ``acceler ating at a rate that management has identified as unsustainable.'' As a result, he says, the company probably decided that now is a good time to split the stock, hoping that small investors will perceive it as a bargain, buy shares and push the price back up.

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