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Non-Tech : E*Trade (NYSE:ET) -- Ignore unavailable to you. Want to Upgrade?

To: Cosmo Daisey who wrote (4588)	1/31/1999 12:51:00 PM
From: Gil Gilbertson	Respond to of 13953

A split is and always has been a distribution. Companies that have large insider holdings and want to distribute shares at max value set the split to accommodate the masses who have watched the stock rise and wait for a pullback. The pullback doesnt come but the price drops in half at the at the split and they take the bait and buy 200 for what 100 cost before. The big difference is the stock is now in weak hands instead of strong holders (insiders). Weak hands get nervous and sell fast. Now there are more shares on the market increasing liquidity and the short squeezes are much harder to pull off. Look at the chart from AMZN...the top day, the buyers charged in like mad and the sellers put it to them to the tune of 30million shares at top price. I doubt if it will ever see that price again. In addition, management of AMZN laid out a billion, yes a billion and a quarter in fact of convertible debt. People gobbled it up for 4.75 % interest just because they can convert at 156 a share. Wow such a deal!.....Now AMZN can pay over a million a week in just interest, but Bezos has the cash. I dont think there are enough book buyers in the world to support this sand castle. Watch out for these flyers and construct your own safety net.