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Technology Stocks : Amazon.com, Inc. (AMZN) -- Ignore unavailable to you. Want to Upgrade?

To: Lizzie Tudor who wrote (54476)	5/1/1999 12:30:00 PM
From: Sarmad Y. Hermiz	Read Replies (1) \| Respond to of 164684

Michelle, re splits... Many reports have shown that when a stock approaches 100 (80 and up) it usually goes above 100. So the ideal split would occur at 170. two for one would make it 85, and usually it would go over 100 quickly. But his is in the context of rising earnings and broker upgrades. In the ancient past, when stock price was a simple function of earnings momentum, interest rates and phase in the economic cycle. But then the notion of a split got split from the underlying reason of the split. Now let's do a split to drive the price up. No insult to anyone, but only idiots fall for that one. You might try to capitalize on their idiocy, but usually the effect is short lived. Dell, Cisco, IBM, GE, Microsoft are of course examples of the good kind of split. The kind driven by earnings. Even after split, earnings per share go back to the pre-split level. For the non-profit organizations like amzn my view is a split won't help. When I said that a split might drive up the price of amzn, that was more a comment on the amzn "investors" than about the effectiveness of the trick. My belief is nothing will keep amzn stock price from dropping significantly. Split or no split.