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Strategies & Market Trends : Ask DrBob -- Ignore unavailable to you. Want to Upgrade?


To: jkl77™ who wrote (6465)9/26/2000 7:18:24 AM
From: Louis V. Lambrecht  Respond to of 100058
 
Morning John, re:split train.

Good primer on stock splits can be found at: investmenthouse.com
Phases are mostly consistent:
huge run before announcement (otherwise, the co. wouldn't consider to split)
short rally before ex-date (there is a rally from some days before to lesser days before)
pullback after ex date (mostly, not always)(also, very bad to hold options over a spkit)
rally after pullback (very common, still some exceptions)

Most interesting (secure) is the pre-announcement rally: some shares trade "historically" at a certain price.
most shares trading above $100 are split candidates.
checking the splits history (YHOO or briefing.com) can tell you the possible candidates.
For more security, check the number of authorized shares (mostly mentionned in th 10Q or 10K), see if they can split without a new registration.

Last hits were CIEN, GLW, SUNW.
My next candidate for an announcement is NEWP (75 mil authorized, 32 mil outstanding). Last annoncement was Feb 10 when shares priced $112 1/8. So room for a 2:1.

In these markets, any little help can do.