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Technology Stocks : InfoSpace (INSP): Where GNET went! -- Ignore unavailable to you. Want to Upgrade?

To: Josef Svejk who wrote (3051)	4/11/1999 8:55:00 AM
From: Steven R. Michaud	Respond to of 28311

Michelle, Josef, I've been following Go2Net for a while and have a small stake. Mathematically speaking....and depending on what you are looking at...a split can have zero effect as (100 shares of GNET at $150 = $15K) is the same as (200 shares of GNET at $75 = $15K) in this respect there is no difference...however, there is a difference in % of increase each dollar added to the value of the stock..once split... for instance (100 shares of GNET at $150... should the stock go up $3 dollars your total increase in value is what? ... $3/$150 = 2% (not much)) now (200 shares of GNET at $75... should the stock go up the same $3 dollars...what is the percentage increase now... 4%... so although it doesn't make a difference (at the instant of split)..all future and gains/losses have a compounding affect on one's investment... I know the next arguement...what about the fact that now there is (twice 2:1 or thrice 3:1 split) two or three times as many shares around and the stock should not be as volatile... I believe the number of shares does play a factor in share price volitility...however, even with the large companies such as MSFT, DELL that have a considerable amount of shares...it can still be extremely volatile...(doesn't meet earnings..etc..) Also...having done a little investing (okay Bill...speculating..whis is probably far more accurate) based solely on stocks splitting...one of the things to look for...is the TRO--don't remember the acryomn but essentiall it gives one an idea of how quickly the float is bought/sold)...often times...the larger the number the greater the volatility... With GNET averaging a little over a million shares a day that (1M x 22 days of trading..or 22M) and with a float of what 6M (that's what I thought I read somewhere here).... you'd have 22M / 6 M...or a TRO of 366....which is very very high...and good should you be investing in GNET based on a suspected split...(and I'm not...I'm in this for the long haul)... Also, there are psychological factors that one cannot ignore. Many feel paying a hundread plus bucks for a stock is expensive...however, they would readily pay in the 50s or 60s....(doesn't make since...but since when do people "you, I, Bill, Ron, or anyone else make total since 100% of the time")...just a fact of life... Well...enough...good investing...and yes...I hope the CEO announces a split...(hell..I'm in this for the long term...and would like to start on my retirement savings today)...so GGGOOOO GNET Best of Luck