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

To: Chuzzlewit who wrote (21139)	1/24/1999 11:26:00 PM
From: LindyBill	Respond to of 77400

It would be pretty hard to convince people that the value of BRK.A is depressed Chuzz, it's obvious that your mind is made up on this subject, so I don't want to beat it to death, but if BRK.A had split this weekend and opened at $50 a share on Monday, what do you think it would be at by Friday? I would say at least $100

To: Chuzzlewit who wrote (21139)	1/25/1999 12:43:00 AM
From: LLCoolG	Respond to of 77400

Splits are a sign of confidence. Most companies, especially wildly successful ones like CSCO, have a preferred value per share that they wish to keep their stock at. Microsoft never trades below $75 per share, because Gates wants it that way. Hence, MSFT splits only after the stock has based well above 150. Historically, Cisco has always kept its stock between 45 and 90, at least since 1993 when I first invested. Every major dip in CSCO's stock has stopped in the 40-45 range since then. The rocket ride of the past 2 years has caused it to trade in the 60 to 100 range. Based on history, it is due for a 2:1, not just a 3:2. If they split, it will tell me that they are very confident that the stock stays above 45 (mid 60's) during a severe correction, like April 97 and October 98. That is why I believe they have started doing 3:2's insteadof 2:1's, although I understand they cannot do a 2:1 now, anyway. While a split adds no intrinsic value, it adds inherent value as a sign of strength and confidence from the company. That certainly does not hurt the stock.