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To: jawd who wrote (6158)6/16/1998 10:45:00 AM
From: Brent D. Beal  Read Replies (1) | Respond to of 164684
 
I have an explanation, which seems to hold fairly well across a number of situations. In the case of a stock split that involves a company that is currently losing money, the effect is actually to reduce the per-share loss, making the stock worth more. . . Since the per-share loss was cut in half, the stock should be expected to double--hence the run from around 40 should stall out around 80, purely based on the fundamentals of the situation. . .


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