SI
SI
discoversearch

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 : Cisco Systems, Inc. (CSCO) -- Ignore unavailable to you. Want to Upgrade?


To: DiB who wrote (19899)12/18/1998 4:49:00 PM
From: Derek Roth  Read Replies (1) | Respond to of 77400
 
Hi Gang,

Here from the RAIN thread which has nearly died. If you take a look at the previous splits, CSCO has split when it is near, or reaches the $90 mark. I also anticipate an announcement any day now.

Only my opinion.

Derek



To: DiB who wrote (19899)12/18/1998 4:54:00 PM
From: Corker  Read Replies (1) | Respond to of 77400
 
JMO...

Fear of of the PE getting to high and not enough authorized shares.



To: DiB who wrote (19899)12/18/1998 6:36:00 PM
From: Gerald Walls  Read Replies (1) | Respond to of 77400
 
In general, why do you people think CSCO did 3:2 last couple of times? What could be the disadvantages of, say, 3:1, 2.5:1, or 2:1 split?

I read an IBD article once that said that 3:2 and 2:1 splits were the best indicators (for splits at least) of a long-term sustained growth. 3:1's and higher often were associated with out-of-control high fliers that eventually crashed. Isn't Amazon splitting 3:1 soon?

There are always exceptions to every rule. Except the one on this line. But that would mean this one is the exception... Now I'm dizzy.



To: DiB who wrote (19899)12/18/1998 6:54:00 PM
From: Lynn  Read Replies (1) | Respond to of 77400
 
I'd have to check, but there might not be enough authorized shares to do a 2:1. Quite frankly, I'm not even sure if there are enough authorized shares right now to do another split without shareholder approval of an increase in authorized shares.

Lynn



To: DiB who wrote (19899)12/18/1998 10:26:00 PM
From: Brian Malloy  Read Replies (1) | Respond to of 77400
 
While I do not have the articles and references in front of me. Studies have shown that companies that do 3:2 stock split tend to outperform those that do 2:1 or even 3:1. However, I'm sure the studies have not been updated to look at say the Dell's, AOL's or the newer Internet stocks.

The bottom line is that the shares grow in value and number.
As an example, I have some Y2K CSCO leaps purchased around $18 about a year and a half ago. The leaps are now worth about $53 but instead of the contract being for 100 shares it is for 225 shares.

Do the math, see the growth then just sit back, relax and enjoy the ride courtesy of Mr. Chambers and the crew at CSCO.

Regards,