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Technology Stocks : Qualcomm Incorporated (QCOM)
QCOM 172.40+0.8%1:35 PM EST

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To: Gregg Powers who wrote (27288)4/16/1999 1:41:00 PM
From: Morgan Drake  Read Replies (2) of 152472
 
Apparently stock splits do matter. See the Winter Ed. of the Journal of Portfolio Management. A lot of prior academic literature backs up the author's instant article. In essence, stock splits are deemed to be a signaling device employed by management, directed toward their constituencies and analysts, that good times are foreseen.

Additionally, this brings more analysts into the fold. More analysts forecast earnings better. Etc.,etc.

I think the study periods go back more than 18 years. If I remember correctly, split stocks outperform nonsplits by 35% per annum. Something like that. The author posited some trading rules that indicated as much.

Regards,
Morgan
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