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To: taxman who wrote (804)3/20/1999 11:12:00 AM
From: Uncle Frank  Read Replies (1) | Respond to of 3256
 
>>action on split will not make a difference in stock price

Mechanically that's true, since it's just like getting two ten dollar bills for a twenty, but in reality, it's rarely the case. Splits attract the momentum crowd and usually result in higher p/e's just before the event, and after the split, the lower price opens up purchases to a larger pool of investors which helps drive the price up. There's a lot of psychology associated with splits that shouldn't be discounted.

Frank