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Technology Stocks : Qualcomm Incorporated (QCOM) -- Ignore unavailable to you. Want to Upgrade?

To: Jeff Vayda who wrote (27301)	4/18/1999 3:28:00 AM
From: Alan Hume	Read Replies (1) \| Respond to of 152472

Hi Jeff, "There is no basis in science for a stock split to be advantageous" Science no, but sentiment yes. Tell me, given the same market capitalization, would you more tempted to buy IBM at $15 OR $150? I live here in Germany, and the DAX was for many years an uninteresting backwater. About 2 years ago the (SEC equivalent) woke up to this, and most high price stocks were split 10/1. Previously a some single stocks were costing more than Joe Public earned in a week. Now, Joe Public "believes" he can afford stocks and the market is booming. Switzerland for example, has still not regulated, is still in the doldrums, and guess what 1 stock in Nestles will set you back 5 figures. The principle is the same, QCOM, SUNW; INTC etc etc believe it necessary to window dress their stocks to make them appear cheaper. Alan

To: Jeff Vayda who wrote (27301)	4/18/1999 10:17:00 AM
From: Art Bechhoefer	Read Replies (1) \| Respond to of 152472

Warren Buffett refuses to split Berkshire Hathaway stock (now selling around $75,000 per share) because he doesn't want short term trading and wants to encourage long term holdings. He was forced to issue some new shares, selling at a modest $2000 or so, to attract investors who otherwise were investing in mutual funds investing in Berkshire stock and/or its individual holdings. I think the principle that Buffett espouses is important: Let the price go high in order to discourage short term trading. Most companies believe that ENCOURAGING trading will lead to higher stock prices, so tend to split their stock in order to make it more attractive to a wider range of investors. The QUALCOMM split will probably have that effect, creating more upward pressure on the shares. I can't tell you how many times my clients ask me to suggest a cheap stock, say, under $10. They don't care if it has little or no intrinsic value, just as long as it's "cheap." Imagine their disappointment when I recommend QCOM as one of the cheapest in telecommunications technology.