Yeah, and it's that high because it's never split. Pretty neat.
>Companies make positive projections all the time. However, they are only
>required by law to be honest in their propectus.
No, companies are at all times required not to be fraudulent. If they
know that their announced positive projection is false, they are acting
illegally (whether under the current system, or some possible future
system that consisted only of contract law).
>I don't necessarily
>believe an announcement until I do some homework. That takes some time
>(unless a broker feels like giving me some free info). A stock split is
>evidence that the company is clearly confident about its future
>earnings. I would choose to wait and see if it splits at all, and then
>buy or hold (or even sell) as necessary.
I believe that under SEC rules, a company is required to split once it
has announced (i.e. filed) that it will do so.
So there is no reason to wait.
There are some announcements that fit your description, though. These
include things such as announcements of pending mergers or
acquisitions. Since the company does not know whether the government
will allow them to make a purchase or acquisition, it cannot say
definitively what will happen.
>Interesting discussion,
Indeed. Interesting topic.
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"Let's face it. Rock musicians tend to be nothing more or less than
criminals of questionable musical talent."
- John E. Harrington on rec.music.classical