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Technology Stocks : Rambus (RMBS) - Eagle or Penguin -- Ignore unavailable to you. Want to Upgrade?


To: Brandon Buttons who wrote (36504)1/13/2000 10:41:00 PM
From: The Prophet  Read Replies (1) | Respond to of 93625
 
I've been pondering that myself, BB. They have never split their stock, but there are at least two reasons why they might consider it this quarter or next. First, they have indicated that they intend to make strategic acquisitions in 2000; if this were done with stock, increasing the stock price would be to their advantage. Second, the huge short position as a percentage of the float, combined with the high institutional ownership, have made this stock somewhat illiquid for a $2 billion company - this is evidenced in larger than acceptable bid/ask spreads. A stock split would improve this liquidity somewhat.



To: Brandon Buttons who wrote (36504)1/14/2000 12:20:00 PM
From: ribman  Read Replies (2) | Respond to of 93625
 
I don't think management will be too interested in splitting the stock until it resides north of 120 +/- for a period of time, even though the additional liquidity would be a plus. As volatile as this stock is, I don't think they want to have the chance of R becoming a $30 stock (xrx,dis,pfe,etc). Bad psychologically. Maybe summer/fall? bwdik