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To: Claude who wrote (101608)2/17/1999 8:57:00 AM
From: Dick Brown  Respond to of 176387
 
I'm with you..doesn't make sense..
Dick



To: Claude who wrote (101608)2/17/1999 9:41:00 AM
From: JBird77777  Respond to of 176387
 
Re: Difficulty of achieving eps post-split

The actual statement in the Options Newsletter is as follows.

"Splitting again now will put the current outstanding shares at 2.4
bln and make any future earnings surprises and price gains
even harder."

Assume that the consensus earnings expectation for the April '99 quarter is .32 pre-split, or .16 post-split. If the goal is to have a positive earnings surprise of at least .01, then pre-split the earnings surprise would have needed to be .01 / .32 = about 3%. But post-split, the earnings surprise would need to be .01 / .16 = about 6%. It is harder to exceed by 6% than to exceed by 3%.

This may be all that the Options Newsletter was trying to say.

JB