[net.invest] splits - part 8

tbul@trsvax.UUCP (08/31/84)

#N:trsvax:52900020:000:771
trsvax!tbul    Aug 31 12:32:00 1984

SPLITS
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O	Should a stock be announced for a split, sell it immediately if
	the price rises.  The price of the stock may go up as the split
	approaches but will probably lose all its recent gains once the
	split has taken place.  Sell it when it goes high before the
	split, then buy it back after the split (when the price has
	declined).

O	Be wary of stocks in the $10 to $20 range that split.  There is
	no good reason to split at this price since the price is low 
	enough for most people and at this price a good market exists for
	the stock.  They must be trying to pull a fast one.

O	Never buy a stock just because it is going to split or has just
	split.  Judge the company on other criteria, such as future 
	earnings power, and not on the split factor.