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Forest Laboratories Inc. Message Board

  • mountaincelt2002 mountaincelt2002 Jan 8, 2003 12:09 PM Flag

    Re: splits are meaningless

    There are always people who make silly pronouncements. Those who think splits are meaningless AND those who "worship" them are both wrong. Splits help reposition stock prices to allow a greater spread of public participation in a company. Broad ownership generally is a positive although it increases shareholder serving costs. But to say that splits are meaningless is simply uninformed -- just as much as is the view that they signify great things to come. It is novices who hold these views. As for the dire predictions of doom and gloom for FRX, those espousing these views simply do not read the information that is available about this company. If you are going to play in the stock market sandbox, you need to do your homework. Otherwise you will lose you shirt over the long (or maybe not so long) haul, AND BECOME BITTER. I sense some are already bitter -- hence the vitriol. If you are not willing to do your homework, let someone who is manage you investments. You don't have to be all that smart to make money in stocks -- and you certainly don't have to be a wall street wizard --, but you do have to do your homework.

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    • he passed away in 1983 or 1984. I had a friend in 1984 who told me to buy a new issue $10000 for 400 shares Cisco Systems. I also have a low adjusted cost basis.

    • Has he made any new recommendations lately ?
      ;)

    • U like to post your nonsense and LIES and talk a great game but the TRUTH IS HARD TO REFUTE. I , unlike u post my trades .

      <<From this point on your losing your ass although I absolutely do not believe your short above 107 in the first place because you've been bad mouthing FRX back since it was in the 90's on it's way to 110. >> mikem

      short @ 107 <eom>
      by: dreadnatty2314 (32/M/NYC)
      Long-Term Sentiment: Sell 12/04/02 11:16 am
      Msg: 3484 of 4153

      <EOM>

    • Im an idiot huh ? What planet are you on ....short @ 93 ????? PLease provide the post my friend . im short @ 104 ,and caught the gap DOWN from 107 to 93 area ....Keep resorting to NAME CALLING my ignorant friend - it shows your intelligence.

    • I to tell you dipshit but your 13 point gap is all gone!!! That gap was from 107 to 94 and FRX is back to 107. Wake up!! From this point on your losing your ass although I absolutely do not believe your short above 107 in the first place because you've been bad mouthing FRX back since it was in the 90's on it's way to 110.

    • i agree with your analysis for the most part....im no basher of the stock - just feel that its trading at a premium to the group and is a bit overextended. As for my bashing of MIKEM - thats another story. I will further ignore his posts as they are mainly lies - there is nobody out there who doesnt make bad trades - myself included . All one can hope for is to be right more times than one is wrong.With the stock trading around 44x earnings,around 10x book and slightly over 10x sales i'd say this baby is priced for perfection. Furthermore with a 50% runup in the last 6 months i feel that the risk/reward on the short side is a good one. I realize that they have a nice pipeline, but im willing to take my chances . I caught the gap down for a 13 point gain so im playing with the 'houses' money. Unlike MIKEM , when/if i take a loss on FRX , i have no qualms about admitting it and will post it if thats the case. Beards make $$,Bulls make $$$ and PIGS get SLAUGHTERED.

      regards,
      dread

    • Jeez,

      You all need to take a chill. As with most things in life the answer lies somewhere in the middle. Theoretically, I 100% agree that stock splits have no actual effect on your NET assets:either twice the shares at half or half at double.

      However, as another poster astutely mentioned there are some intangible(even psychological) postives that result from a split. It brings increased breadth of the stocks, brings in buyers who are normally scared off from higher prices, etc. This is something that is very hard to quantify but it exists, and does have some benefit, substantial maybe not. But, at the same time it is quite possible had frx not split it would not be AS high as it is..maybe.

      As to Buffet, I would guess the main reason that buffet does not split is for that very psychological affect, to make it seeminlgy more difficult to own. The avergae joe will not buy a few shares of very expensive stock, they feel that they need to own quantity of stock. Yes, we all know its about the return on the $ investment not shares, but alas an average joe just doesn't see it that way, for him its hard to imagine making real dough on 10 shares. For buffet, he doesn't have to worry about the mass common investors daytrading, selling in panic, etc. Most Buffet holders are not very volatile in the short term because they usually have more capital

      As to this board, i read it often. I just hate extremers. Frx is a solid company that has a solid future that yes their is risk since they do enjoy a premioum that a setback or slowing of growth could affect the price. But certainly not by the 30s of points you bashers talk about. However, the huge return that frx has generated the last few years for shareholders once should not expect to see anything close to that. But should mematine and others hit well, this may be a stock thats ignificantly outperforms the markets for many more years. Is there risk? Sure, there is always risk, but you bashers and pumpers are ridculous with your stories, manipulation sobs etc

      lastly, I know many top FRX insiders, and I owuld not tout their sales as a warning. Most of them have the majority of their own wealth in this stock and when they do sell although shares may be large, % of what they own is small. And with the huge gains they would be idiots not to take some off the table. My experience with them has me believed they are very excited about FRX future, especially since I give much of the success to them as well

    • i should've known ...all winners with LOW COST AVG.....kinda sounds like MIKEM.....still waiting for an answer - why BRK doesnt split (if splits are SO meaningful)?

    • I think you are wrong!!! I bought FRX in 1980 -$20.625 per share (100 shares) on the advice of an uncle. This split #7 for me (it's really 8 - in 1979 16 shares were given for eevry 100). I did sell old shares at interval splits but will have 5000 shares at an adjusted cost basis of $.165625 per share or about $250,000. If splits didn't matter, Iwouldn't have this amount. I have seen this stock as yo-yo; but I am here fore the long run not like malcontents like kendelt. With mematine this company will soar.

 

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