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Technology Stocks : Baidu (BIDU) -- Ignore unavailable to you. Want to Upgrade?

To: manalagi who wrote (1559)	8/1/2011 10:37:20 PM
From: manalagi	Read Replies (1) \| Respond to of 2098

Won't be surprised if Baidu will split 2:1 before the end of the year. Baidu split 10:1 on May 12, 2010. The closing price the day before was $ 714.17. Why did Robin Li made it 10 to 1 instead of 8:1 or lower to make the stock price higher than a century mark? His reasoning was that Baidu should be available to more investors. Hence, at around $ 60 post split (when it was announced), the price is more affordable. While splitting shares do not change anything except that you can trade derivatives which requires round lots) more so than before. Nevertheless, there is a psychological effect showing that management is more confident with the future of the company. At the end of the day of the split the stock appreciated $ 6.79 or around $ 68 pre-split basis. Robin Li is a very smart person. He can use Baidu stocks for acquisitions. Right now the stock is around $ 160. So, a 2:1 split seems not out of the question. You hear it here first. Note: Last week the stock market suffered one of the biggest loss. But if you own Baidu or Apple, you will be whistling a happy tune. Closing price Monday August 2nd 2010: $ 84.60 Closing price Monday August 1st 2011: $ 158.93 or 87.86%.