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Old 09-14-2008, 09:18 PM
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Whale Pilot
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Joined APC: Sep 2006
Position: In the Purple Haze
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Originally Posted by W0XOFF View Post
SO. . when the he!! are the dipsticks on the Board of Directors going to authorize the LONG overdue stock split ! ? ! ?

It has been about 1999 (FDX - FedEx Corporation - Google Finance) -click on 'max' . . . since the last one - and the historic prices are WELL above what it was at each and every former level at a split.

TAKE CARE of your shareholders !!
W0X0FF,

I am sorry but I see no advantage of doing this. See below:

Advantages of Stock Splits
Lower prices per share can result in greater liquidity – stocks are easier to sell at lower prices and there is less of a bid/ask spread. This is especially true for stocks that are priced in the hundreds of dollars – small investors view them as out of their budget and the high bid/ask spreads (the difference between buying and selling prices) can put off bigger investors.

Other advantages of stock splits have to do with investor psychology. A split is usually seen as a bullish indicator – stock prices are increasing and the company is doing well financially. There is usually a short-term rally around a stock which splits, but the market tends to normalize after a short period.

Disadvantages of Stock Splits
On the downside, stock splits may cause investors to expect more about how the company performs. If these expectations are not met investor confidence may be shaken and the result could be a drop in share prices.

The bottom line is a stock split does nothing to affect the worth or performance of a company. It may be nice to own more shares, but in the end your 2 five-dollar bills are still worth the same as your ten-dollar bill.


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