Hi,
From general observations,
I see three reasons to split a stock:
1. Lower the stock price.
2. Raise more money.
3. Offset bad news.
Last year the stock split and rushed right back up
to a high price and a very high PE ratio. Why split
it again? Does Microsoft need more cash? The stock
price seemed to be in a holding pattern for the last
six months, but seems to be moving back up. If the
stock starts falling for some reason, MSFT just needs
to announce a split and drive the stock price back up.
Just before the last slipt I heard rumors that the split
was impending were being circulated. I wish I listed to
them as I sold off some stock just before the split. I
thought the sell off of Oct 1997 would occur in 1996.
Kevin