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.

Technology Stocks : Lucent Technologies (LU) -- Ignore unavailable to you. Want to Upgrade?

To: Rob L. who wrote (1546)	3/9/1998 2:48:00 PM
From: LWolf	Read Replies (2) \| Respond to of 21876

Hi Rob L, wondered if you could help me understand a little more re: splitting: your comment had been: >>> A move from 100 to 110 with 50 shares yields the same gain as a move from 50 to 55 with 100 shares. So forget about stock splits and concentrate on price movement. <<< I'd like to work through this hypothetical example: If I buy 100 shares @ 108, then on after the split I would have 200 shares @ ~54. Now if the price continues to moves up 5, 10, 15 points I would have the following in each scenario: Pre-split example: 1 share @ 108 with continuing stock price upward movement of 5, 10, 15 SHR Price Value 100 * 108 = 10800 100 * 113 = 11300 100 * 118 = 11800 100 * 123 = 12300 Post-split example: 1 share @ 54 with continuing stock price upward movement of 5, 10, 15 Shr Price Value 200 * 54 = 10800 200 * 59 = 11800 200 * 64 = 12800 200 * 69 = 13800 Please help me see the error in my logic. But right now, to me anyway, splits work to my advantage as long as I buy before the split and the price of the stock keeps going up. Which is a very high probability for LU. Thanks, Laura