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 : Compaq -- Ignore unavailable to you. Want to Upgrade?


To: Elwood P. Dowd who wrote (43807)1/16/1999 7:35:00 PM
From: Kenya AA  Respond to of 97611
 
El: I was trying to see if there was any pattern to the splits - none that I can determine. Can't find out anything about the July 1990 split. The June 8, 1994 split was announced on April 24 - the same time that they reported Q1 earnings. The July 29, 1997 split was announced on July 1st - 9 days before they reported earnings for Q2. The January 21, 1998 split was announced on October 16, 1997 same day that Q3 earnings were announced.

If I had to guess, I would say that they usually like to split the stock in the summer because traditionally there's a summer slump in the market and a split would be a catalyst to get things moving. The January 1998 split (announced 3 months ahead!!) was obviously done as a hedge against the Asian contagion and because they probably had an idea that they were going to be in trouble with the channel stuffing thing.

If my assumptions are correct, I don't think we'll see a split announcement when they report in January - no need because things are going well. I wouldn't be surprised to see one during the summer though - stock price should be about 70-ish by then.

K

PS: I swear Ted has you Bookmarked!!!