Disk Drive Sector Discussion Forum Message Board

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Technology Stocks : Disk Drive Sector Discussion Forum

WDC 139.09

-0.8%

Nov 21 3:59 PM EST

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To: Robert Douglas who wrote (5755)	3/2/1999 11:02:00 AM
From: KevinThompson	Read Replies (1) of 9256

A stock is worth what the market will pay for it. Supply & Demand. In a typical stock split, the moment it splits you have twice as many shares at half the original value. But moments after that, if additional demand is still unsatisfied, there is now more supply of the stock and hence the ability for price action to move to the upside (increase). Happens all the time in issues where supply and demand is steep to the demand side. I view this suggested move by QNTM in similar light. The idea was for management to respond to stockholder concerns about share value. This move is intended to improve demand for the stock and hence, add value for the shareholder. Some believe, and probably rightly so, that the storage systems division of their business is discounted unfairly as a part of the total equity reflected in their stock price. This move should help to draw attention to that fact and therefore improve the overall valuation.

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