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Technology Stocks : Applied Materials No-Politics Thread (AMAT) -- Ignore unavailable to you. Want to Upgrade?

To: Big Bucks who wrote (10200)	6/6/2004 3:31:01 PM
From: Proud_Infidel	Read Replies (1) \| Respond to of 25522

BB, I could make a similar argument about not splitting a stock hurting a company. You said: In order for a stock to increase in value there must be buying demand.....someone must be willing to pay more for the stock after you have purchased it. This requires either the same buyers to increase their stock position or for new buyers to enter the market. How many people can realisitically afford to buy BRKa at $90,000 per share? I could make the argument that the more the share price increases, the less potential demand there is in the marketplace for the stock....I could make that argument, but I won't. The fact is, that as long as the company's prospects are good, there will ALWAYS be buyers of the stock, whether it trades at $10 or $100,000, and whether it has 1 Million shares, or several Billion. I would NEVER do a screen of a company based on number of shares outstanding, as it is really meaningless to what the company is actually worth. Brian

To: Big Bucks who wrote (10200)	6/10/2004 1:25:05 PM
From: TimF	Read Replies (2) \| Respond to of 25522

Would I buy microsoft as a long term buy and hold, not likely....why? Because, even though it has great margins, products, market dominance, etc., it is in a mature and relatively saturated market....growth rate is slowing. It takes a lot of profit to move the price up due to the amount of shares available. The stock becomes sluggish like a beached whale, it flounders around but doesn't move much. Because of it's size (outstanding stock) it loses its' mobility. If Microsoft did a 100 to 1 reverse split it would be no smaller or quicker. It would take just as much profit to move the price up. Yes it would take less additional profit to move each share up $1 but that fact is meaningless. Is the percentage gain that is important. It doesn't matter if you gain 10% by having 1000 share go from $1 to $1.10 or if you gain 10% by having 10 shares from from $100 to $110. If Microsoft really is a "beached whale" it would be just as much of a "beached whale" after the reverse split. Tim