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Re: Thy_Skisus post# 45473

Tuesday, 06/09/2009 1:21:07 PM

Tuesday, June 09, 2009 1:21:07 PM

Post# of 103302
Thy-Skisus

Simple question for you?

That is the percent difference from a stock going from $5 to $10 compared to $20 stock going to $40. NOTHING it is still a 100% increase

The change is in the stock reporting. If a stock has 1 million shares authorized at $10 and reports a profit of $1 per share that equals to profits of $1,000,000.

the company has a P/E (Price/Earnings) of 10 ($10/$1)

if they split and now they will have 2 million shares authorized at $5 per share and reports a profit of 50 cents per share that equals to profits of $1,000,000

the company has a P/E (Price/Earnings) of 10 ($5/.50)

NO DIFFENENCE. a split is only designed to attract new investors who think the share price indicates if the stock is expensive.

Please answer me this question. Do you think Google Inc. (GOOG) at $430 is more or less expensive then Cisco Systems, Inc.(CSCO)at $20 ?

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