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.

Strategies & Market Trends : Roger's 1998 Short Picks -- Ignore unavailable to you. Want to Upgrade?

To: McNabb Brothers who wrote (1627)	1/26/1998 8:42:00 PM
From: Roger A. Babb	Read Replies (1) \| Respond to of 18691

Hank, stock splits are an effective way to squeeze a few extra points out of a high flier and delay the correction. Look at PRST, AND, DDIM and VVUS for prime examples. Sometimes there are good reasons for a split, but more often splits at prices under $100 are signs that the company is just promoting its stock price. While splits may temporarily boost a stock price, the EPS is not affected and there is little long term effect. But it does make short shares easier to find. Often shorting the runup after a split announcement is profitable. Was hoping CTXS would give us another shot at shorting 80+ and some of our long friends a chance to exit based on its split announcement, maybe we will get a bounce tomorrow.