The significance of a split is that it generally makes the shareholder base larger. Usually splits occur in companies with growth. It keeps the retail price of the stock at a level for more investors. A good example is Google trading above $400, not a lot of small retail investors buying in. Volitility is generally less after a split due to a wider base of investors. Not to say that there is no volitility due to some shares being sold off by previous investors cashing out. This is a short term situation. I use the term investors as opposed to traders who create more volitility. In the case of Coldwater, I believe they want to keep the retail level of the stock at a good point to keep new investors interested.
It creates liquidity more than volatility. This helps attract institutional investors. It also shows management's confidence in future business operation. CWTR normally does a 3 for 2 when it goes past 30.