Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: Steve Byers who wrote (9211)	10/22/1997 8:44:00 PM
From: Proud_Infidel	Respond to of 70976

companies who split have to keep earnings momentum/growth in order to continue increasing share price... increaing market share in a growing market, all the standard investment stuff All splits are not equal! Some companies split their stock in the 30's, some when valuations are excessive etc. However, firms with stellar managements usually will not split their shares unless they are bullish on continued eps growth etc. As an example, MSFT was being very prudent in not splitting their shares when they crossed the 100 line. They came out and said that they were not buying their shares back indicating that they thought valuations had gotten rich and let the stock trade in that range. And INTC was trading above 140 for what seemed an eternity. Your studies, I am sure, did not separate the wheat from the chaff so to speak. I believe there are companies such as MSFT, INTC, AMAT, CSCO(and others I am sure) whose management truly understand the concept of shareholder value and will only split their shares when their outlook for the future is bright. If you study the splits of ONLY AMAT, MSFT, INTC, and CSCO I am sure you will reach a different conclusion than your prior one. A split alone does not increase value. That must come from management. regards, Brian