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Ouch, sorry about your netscape experience, Jim. Actually, I am surprised at the speculation over the aol split price, since there is no value added per se when a stock splits. Splits are nice for companies that are growing, because of the psychological aspect of having twice as many shares, and the ease of calculating appreciation by just counting the splits. But the split in itself does nothing to the underlying value, and for a company that is on the way down a split can be very bad, accelerating the downside momentum. I would be wary about the recently announced dell split, for example, not to say the company is going down, but if it does the split would hurt it. As far as the AOL split as long as they sustain the growth it should be very good, and it comes at a good time, just ahead of finishing the netscape acquisition and in time for the next quarter's earnings. |
