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Technology Stocks : America On-Line: will it survive ...? -- Ignore unavailable to you. Want to Upgrade?

To: Tim Kenney who wrote (10512)	6/30/1998 5:13:00 PM
From: Keith A Walker	Respond to of 13594

I believe a split to be less likely since splits are, in the end, dilutitive to earnings. Unless the net earnings of the company are growing at a fairly rapid pace (in real terms), let's say >15% per quarter, I don't think you can make a good argument for a split. Iomega did this and the stock has suffered badly. Splits also tend to work against a stock after the split is effective. Plain old supply and demand. People sell off some to lock-in profits and new buyers may not be as plentiful. If you are the CEO and more concerned about the stock price, wouldn't you try every financial gimmick in the book, eg. Al Dunlap. A more solid approach is truly investing in the future through R&D and growing your bottom line through top line growth and cost management, not issuing new shares of common to raise cash for some unspecified purpose except to invest in money market/commercial paper and add to earnings through artificial means. AOL shareholders are buying lousy management. That's my opinion.