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

To: Gemini who wrote (19944)	12/20/1998 11:00:00 AM
From: PMS Witch	Read Replies (2) \| Respond to of 77400

"You "hate" splits. I do not understand that comment." Question -- If you own 10 percent of a company's outstanding shares and they split 2:1, do you think you now own 20 percent? Obviously, after the split you'd own EXACTLY the same size piece of the same company as before the split, only now, you'd need to adjust the numbers in whatever tracking system you use. Also, if you pay commission based on number of shares you sell this cost will double -- a money losing situation. Berkshire Hathaway doesn't split. Granted, it has a high stock price, but being unattractive to short term speculators is not a bad thing. "Do you think Cisco's shares would have appreciated in value by over 25,000 percent over the past 100 months ..." I think CSCO's appreciation was mainly a result of the company's ability to perform splendidly over the last 100 months. Investors able to recognize the value of this company have lifted the stock's price by their willingness to pay dearly for this performance. Generally price appreciation leads to splits, not the other way around. P.W. P.S. In my opinion, CSCO's current stock price (90+) has gotten ahead of itself. Don't be surprised to see a breather. Happy investing.