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Strategies & Market Trends : Trader J's Inner Circle -- Ignore unavailable to you. Want to Upgrade?

To: Joseph Lee who wrote (9219)	2/17/1999 8:06:00 PM
From: Dean	Respond to of 56535

Joseph: Splits From what I understand....a security's value is supposed to be market driven. Thus, when a 2 for 1 split occurs, the public should only be willing to pay 50% of the original value since each share will only be worth 1/2 as much. Therefore, the price adjustment should be instant and since splits take effect at the market open, the price should be adjusted as soon as the market opens. Also, when a company announces a split, they are also implying that they have the confidence that the price will rise in time. Thus, to many a split is good news but realistically a split announcement is not news of a potential increase in the company's real value. This is my understanding of it. Dean

To: Joseph Lee who wrote (9219)	2/17/1999 8:07:00 PM
From: Wes Stevens	Read Replies (1) \| Respond to of 56535

OT - Tim Luke was suspended today for using bad language. I went back over his posts and he did us one very bad work with a # in the middle of it. I have seen this many times on SI but this time they did something about it. Seems a little chickens___. We all better watch what we say.

To: Joseph Lee who wrote (9219)	2/17/1999 8:26:00 PM
From: Trader J	Respond to of 56535

Joseph: Splits - 1) On a 2-1 split, the share price will be halved from the previous day's close and the number of outstanding shares will double. I am not sure at what level this takes place or the mechanics behind the actual split itself....good question though. 2) Many people play the split strategy, especially now with Inet being so, gulp ... hot. Playing splits is not a sure thing but it is a strategy that I have been able to play quite successfully. I am sure many other's have also had much success playing splits. Fundamentally, nothing changes. But Psychologically, the ability to acquire shares at a price that is now 1/2 is very appealing for some....especially after the issue has had a major run. Take a look at BCST, CMGI, YHOO or any of the others. Maybe now isn't the best time to look at them......... 3) Sure, if you have found the strategy works for you. Always develop your own risk tolerances and strategies. Play what you find works for you and you will be much further ahead in the long run. Hope this helps. Tj