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Technology Stocks : CMGI What is the latest news on this stock?
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To: badon518 who wrote (5755)3/11/1999 8:55:00 PM
From: GrokSoup  Read Replies (3) of 19700
 
Interesting arguments made by CMGi management on the split front. The thesis that you shouldn't split because it will do your float little good is interesting, but not entirely tenable. While people might like the extra shares, as Wetherell et al., argued, investors will eventually sell into price gains.

Alternative explanations? Splits are increasingly becoming a carpetbagger bit of business, a way to pull in naive investors; I think more sophisticated managers are getting split-uneasy. I applaud CMGi's decision to resist the you-gotta-split drumbeat: split when it makes sense for you, not just because it appeases greater-fool instincts in some longs.

P.
groksoup.com
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