Silicon Investor (SI) -- The First Internet Community

STOCKTALK

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 : Inktomi (INKT) -- Ignore unavailable to you. Want to Upgrade?

To: CMon who wrote (648)	12/30/1998 9:52:00 AM
From: Brett Trueman	Respond to of 1945

There is some theory to suggest that splits signal management's expectation that the firm's share price will go back up in the future, justifying some increase in price at the time of the announcement. But, I certainly agree that it is hard to understand why INKT's stock should be worth as much as 15% more just because of the split announcement.

To: CMon who wrote (648)	12/30/1998 12:45:00 PM
From: LLCoolG	Respond to of 1945

CMon, A split tells me that the company is pretty confident that their stock is not going to completely crash. Uusually, a company has an idea of were they want their stock to trade, in terms of share price. For example, MSFT will not split unless Gates is sure that the stock won't trade below 75. No inherent value change, but it does show self-confidence. That's the best thing about a split. G