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Technology Stocks : Altaba Inc. (formerly Yahoo)
AABA 19.630.0%Nov 6 4:00 PM EST

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To: HG who wrote (21121)4/7/1999 6:39:00 PM
From: tonyt  Read Replies (2) of 27307
 
>I'm intrigued....why ? More dilution ? larger runup ? Larger P/E ?

Price. Most companies want their stock trading in a range of $30 - $80 (Look at the price when MSFT or DELL splits for example). It also shows that management has confidence in the stock price. A 3/1 split would put YHOO at $70+ -- a reasonable trading price.

Dilution? A split does nothing to dilution. The BSCT deal caused dilution, and excess dilution at that due to mgmt's decision to sign the deal a week too soon (they should have done $5.7b at todays stock price)

Larger P/E? A split has no effect on P/E

Larger run-up? A split announcement always causes a run-up (and if a split is expected and not given, it causes a sell-off)
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