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Technology Stocks : SYNTEL (SYNT) - Upcoming Year 2000 IPO -- Ignore unavailable to you. Want to Upgrade?

To: Michael Sinclair who wrote (1473)	4/22/1998 10:07:00 AM
From: R. Bond	Read Replies (1) \| Respond to of 2761

>>Is a split primarily a vehicle to enhance shareholder value?<< A split distributes stock. This enhances the profits of the distributor. The company and others who provide the stock raise cash. The only line I ever hear is that it makes shares available to a new group of investors who can't afford the pre-split price. In this case, IMHO, that's not a major factor. If the company wants to attract buyers and give the stock room to run, the price should be kept in a range which will accomplish this. For example, running SYNT up to $70 before a 3-for-2 split would give a new price of around $46 5/8. It looks like a better buy at around $32, don't you think? Happily they are only adding 30% more shares to the market, rather than 50%. Just my personal opinion. Watch out for a pop to $70 today. Cheers, Bond

To: Michael Sinclair who wrote (1473)	4/22/1998 11:16:00 AM
From: P. Ramamoorthy	Read Replies (1) \| Respond to of 2761

Apr 22 is the split date. Company has no control over the price prior to the split or after. The market (market makers?) controls the price by balancing supply against demand. Tomorrow it will open at 2/3 of today's closing price (54?), about 38(?). Just a guess! If there is a dip after the split, a good earnings report will move the price up. Usually the price goes up prior to announcement and dips after. SYNT does not follow this pattern. (Look at their cost of revenue, SGA, and gross margin. Margin is currently not as good as IMRS, but will get there.) Ram