How high will Microsoft fly? Message Board

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Technology Stocks : How high will Microsoft fly?

MSFT 486.98

-1.4%

Nov 19 3:59 PM EST

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To: markanth who wrote (15056)	1/25/1999 12:16:00 AM
From: J. P.	Read Replies (2) of 74651

<<Stock Split Fact>> It's also a fact that the Nasdaq was in a cyclical low hanging just off the 200 day moving average AND Microsoft stock was coming off a basing period when the January 1998 earnings came out, and they subsequently announced a split. This time it's different. The Nasdaq is at a cyclical high, and Microsoft is coming off a big runup for the January 1999 earnings report. Why would they announce a split and just create an unsustainable overextended runup into a correcting market at this point? When they can save the split announcement for a future date after the stock has had a basing period, and can more easily facilitate a runup. This way, they can get more bucks for the bang of a stock split announcement and a sustainable stock runup, instead of wasting it for a hot money quick pop that wouldn't last. Remember CPQ announced a split going into last late fall's Nasdaq correction and got hammered to the low 20's as did EMC who split into the correction and got hammered into the low 20's also.

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