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Biotech / Medical : QLT PhotoTherapeutics (QLTI) -- Ignore unavailable to you. Want to Upgrade?

To: Scripts who wrote (655)	9/28/1999 3:52:00 PM
From: PDL	Respond to of 1321

-- OT -- The book value of the stock is static. When the stock splits (or 100% dividend) there will be twice as many shares and the book value per share will be 1/2 of the previous PER SHARE BOOK VALUE. Dilution comes from using stock to make a purchase (as in an acquisition) at a premium where the "earnings being bought" do not compensate for the shares used to make the purchase. Most acquisitions are dilutive to either earnings or book value (you have to account for good will in excess of the book value of the acquired firm). Theoretically, nothing really happens to stocks that split -- but psychologically, splits are often popular because they make the stock more affordable for retail buyers (to buy a minimum 100 share lot).

To: Scripts who wrote (655)	9/28/1999 9:16:00 PM
From: Ian@SI	Read Replies (1) \| Respond to of 1321

Ed, Which would make you wealthier? 1. Owning 1 share worth $100 2. Owning 2 shares worth $50 each. A split really doesn't matter at all. It just makes the stock more affordable for some individual investors on a psychological level. In Canada, QLT was trading above $100 / share and might have been viewed as "expensive" by novices. After the split it will probably trade in the $50 to $70 dollar range until the FDA approval comes, that is. Perhaps, this split is to improve the share price optics for just that eventuality. ;-) Ian.