InterDigital Inc (IDCC)

[la-tsla-fan]

Stock splits are generally perceived to be a positive for a company's stock. The perception may be supported by facts (see http://www.rightline.net/splits/) or it may not (see http://businesstoday.intoday.in/story/how-investors-can-gain-from-shares-company-stock-splits/1/16518.html).

A quote from the first linked story:

"A 1996 study by David Ikenberry of Rice University measured the short and long-term performance of stock splits. His research included all the 1,275 companies whose stock split 2-for-1 between 1975 and 1990. Mr. Ikenberry compared the split stocks to a control group of stocks for similar-sized companies in similar sectors that had not split. His results were startling. The split stock group performed 8% better than the control group after one year, and 16% better after three years."

A quote from the second linked story (which pertains to Indian stocks):

"Our research on 30 companies that went for stock splits during January 2001 to May 2010 show that exactly half of them moved up a year after the split while the other half witnessed a drop in price."

So who knows?

LA