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 : Amazon.com, Inc. (AMZN) -- Ignore unavailable to you. Want to Upgrade?

To: Glenn D. Rudolph who wrote (39951)	2/14/1999 11:35:00 AM
From: H James Morris	Read Replies (1) \| Respond to of 164684

>>Is it possible you do not like William a lot?;-)<< Glenn it all depends on my mood, and @ times I can be kind of a moody guy. Like last night when I was reflecting on how hard it was for me to get back in the black after the "Thing" started kicking my ass last May. While it appeared to me that William was making his $billions, by throwing his money @ any Internet stock that walked. Setting up my hedge on the "Thing" and working the sucker became a full time job. Which reminds me. I intend to go back to work this year. This day trading as lost its glamour. Besides, I think it's going to get tougher. Back to William. "Is it possible you do not like William a lot?;-)" No!! I like and respect William. I just think he didn't work as hard as me, and to make things worse. He made $billions while I only made $thousands. It's just not fair! This is one of the reasons I respect William. First he had the convictions, and the intellect to "Feel" the internet mania (experience). Second. He put his money up. Third. He played the splits >>NEW YORK TIMES NEWS SERVICE February 14, 1999 According to one version of the story, Yogi Berra was once asked whether he'd like to have his pizza cut into six or eight slices. He figured he was pretty hungry; he asked for eight. When it comes to stock splits, many investors seem to have similar ideas. In anticipation of stock splits, they are bidding up stocks by extraordinary amounts. Yet, by definition, when companies split their stocks, they create nothing in the way of new wealth, because investors simply receive a greater number of shares at reduced prices. The total value stays unchanged. Consider Pfizer, which announced on Jan. 28 that its board would vote on a 3-for-1 stock split in April. Its stock jumped $5.625 that day, to $127.5625. Yet when Pfizer handed in stronger-than-expected fourth-quarter earnings on Jan. 19, its stock rose just over 18 cents. Splits might be adding to market volatility, analysts say. "Stock splits have garnered their own momentum players," says Paul Cherney, an analyst at Standard & Poor's. "At one time a split might have meant something more intrinsically fundamental about a company's future prospects, but now splits are adding to the market volatility." Among companies on the New York Stock Exchange, there were 224 splits of at least 3 for 2 last year. In January of this year, splits set a blistering pace: a total of 35 vs. 22 in January 1998. The issue of when to buy a splitting stock is the subject of much research. Studies conducted last year by both Merrill Lynch and S&P found big gains in companies' stock shortly before a split, though they did not specifically address performance at the time a split is announced. The S&P study looked at 359 New York Stock Exchange issues that had splits of at least 2 for 1 between January 1995 and December 1997. It found that the stocks gained an average of 3.97 percent between the 20th trading day that preceded the official split and the day of the split. The S&P 500 stock-index averaged a 2.03 percent gain during that time. The S&P study found that the companies that split their stocks saw them grow an average of 16.2 percent in the year after the split, while the S&P gained 28.2 percent. The Merrill Lynch study, which looked at stocks in the S&P index that split between 1986 and 1998, found that companies outperformed the S&P 500 by an average of 27.44 percentage points during the year before a split, but by just 3.91 percentage points in the year after.<< Fourth. He's still here. Regards Copyright 1999 Union-Tribune Publishing Co.