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Technology Stocks : Altaba Inc. (formerly Yahoo) -- Ignore unavailable to you. Want to Upgrade?

To: J. P. who wrote (15914)	12/6/1998 10:09:00 AM
From: Phillip C. Lee	Respond to of 27307

At the current situation, YHOO has 117m shares outstanding, with which at least 80+% was held by institution-like companies and only about 23m shares available in individual's hands. Even they get 4:1 split, there are still 92m or less controlled by individuals. Of course, the likelihood of volatility will increase but will gradually reach free-market flow condition. With an average daily trading volume around 8m shares, every three days the stock price will be refreshed if no institutions involved and no repeated entries. Is it a good policy for YHOO and is it going to ensure it will always go upwards from controlling the supply? It's definite in a short term, but not a long one. For the current condition, institutions and YHOO executives are big winners, but they can hardly sell their stocks without impacting the price (same in other major companies). If price can be reduced to 1/4 of the current price via splitting, then institution or YHOO's executives sales will be much easier to be absorbed by individuals or other institutions with little notice and much supporting forces. After splitting, it may still remain three-day cycle as it's now, the difference is probably the increase of daily volume from 8m to 24m, which will become one of the most active stocks everyday. However, it surely becomes one of the most speculative stocks like other internet companies manipulated by day traders but bid/ask pattern will be reasonably closer (e.g. only 1/8 or 1/16 gap rather than current 1/4 or 1/2 gap). Well, there are pros and cons of 4:1 splits depending on what's first priority and benefit to investors and what's company's strategies as well as its confidence level. Phil