TST,
If I remember correctly, DELL has 3 billion authorized shares, of which, based on the following URL for 4th quarter earnings:
dell.com
and multiplied x 2 for this split, shows about 2.77 billion issued. That leaves only about 8% of the authorized shares available for a split (discounting other factors such as buy-backs and incentive options issued).
Also, DELL has a history of 2:1 splits.
bigcharts.com
As you will note, the only split which was not 2:1 (3:2) was distributed in 1992.
Now, go to this site and look at the option strike prices, especially the JAN 2000 LEAPS:
webservices.pcquote.com
Although I doubt that the number of option strike prices is a major consideration, I feel sure that it is a consideration. A split which is not 2:1 gives some very unusual combinations: resulting strike prices and quantity of shares per contract, and that is totally disregarding the extra cost involved in issuing checks for partial shares. This can (and does) cause confusion, which can lead to some irritation and dissatisfaction with the company. A 2:1 is much cleaner and more efficient, and we know that DELL prizes efficiency.
I deem it extremely unlikely that DELL will announce another stock split until AFTER the shareholders have approved an increase in the authorized shares. Read your proxy for the annual meetings carefully, as that is when it is most likely to happen.
JMHO. DELLish, 3.
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