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Old 09-15-2008, 12:05 AM
  #5  
pilot141
Avoiding Memphis
 
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Joined APC: Apr 2005
Position: Intl Feeder Jet
Posts: 504
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Gotta agree with Whale here...

I could see a split if the stock was rocketing above $100 with no end in sight - that three-digit price seems to be a psychological barrier for many investors. Of course, that's not always true - witness Google and Berkshire Hathaway.

But for a huge, established company like FedEx - a stock split in this climate could be seen as an artificial attempt to create a positive outlook on the stock.

Bottom line - a split will occur when the company value increases enough to push the stock well above the $100 mark and keep it there. Even then, it's not guaranteed, and it does nothing for the shareholders - dividends are diluted in direct proportion to the split and your overall share value remains the same.
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