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Technology Stocks : Vitesse Semiconductor

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To: Eye who wrote (2229)2/4/1999 11:13:00 AM
From: OldAIMGuy  Read Replies (1) of 4710
 
Eye, Congratulations on the 10X with VTSS. Sure feels good. At about $52/sh I reached that plateau. The view's nice from here!!

As far as dilution and float goes, a split on a stock isn't the same as is a secondary offering. A secondary is used to raise money for the company for some purpose and the issued stock is added to the total outstanding. A split gives everybody more shares, but there's not additional value outstanding. No dilution of capitalization, just a shift in price per share. If you have $X0,000 to start in value, you still have the same amount after the split - all other things equal.

There's a psychological difference between a high priced stock and one that's lower. It's tougher to define, but many investors shy away from higher priced stocks in favor of lower priced similar equities. There's also something about being priced with peer stocks that comes into play. If X,Y and Z all have about the same price per share, it's easier for the investor to make some sense of it. That's about all I can think of right now!

Best regards, Tom Ten Bagger, Too!
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