Alliance Fiber Optic Products Inc. (AFOP)

[Euripides90]

To speculate on my own question: splits like this happen when value of a stock has gone up so high so fast that investors are seen as reluctant to invest, so management figures that splitting and making each share worth half, will encourage more new investors to get into the stock -- and that in turn will hopefully drive PPS back toward where it was before the split.

Based on this general wisdom I'm not seeing why it makes sense for current investors to keep driving the PPS up -- the lower it is by EOM and split, the higher future potential. It's not like we get more money if the PPS is high at time of split. Again, I keep thinking there will be some sort of plunge right before EOM and hesitate to invest too much more before then. Anyone have any experience or other opinions?