Replies to post #3627 on Microsoft Corp (MSFT)

[FrancisUnderwood]

No idea. Don't see a point in guessing.

[fred2207]

The new price target, which you can confirm at the link provided below, is $85.00 per share (article dated 7/31/2017). If I understand your email correctly, are you predicting the possibility that each Microsoft share may reach $500 or $1,000 per share perhaps justifying a split?

https://www.dailypolitical.com/2017/07/31/microsoft-corporation-nasdaqmsft-stock-rating-reaffirmed-by-cowen-and-company.html

[stay long]

Many companies could declare a stock split but they are reluctant to do so because it would draw political attention, knowing that many politicians are against big business especially highly successful big businesses. These companies fear tax increases on their products. The oil industry is a good example. I believe that is why the stock split has been a stranger during the last 15 or so years.

[PMS Witch]

When looking at Microsoft stock splits during the time I've owned the stock, it seems they like to split when the price rises above $100.

But the last split took place when the stock was under $50, breaking the pattern. Maybe after seeing the stock price in the doldrums for a few years, management thought a split would bring some investor interest to their shares -- I don't know.

Of course, after many splits, the commissions to sell will be many fold greater. Splits seem to be a windfall for investment dealers.

The theory is that lower share prices will attract investors of modest resources. I question why two $50 shares are more attractive than one at $100, since earnings per share and dividends are halved by the split.

Cheers, PW.

From my records (No guarantee of accuracy). . .

Payable Date          Type of Split  Closing Price Before  Closing Price After 
  
 September 18, 1987    2 for 1        $114.50 (Sep 18)      $53.50 (Sep 21) 
  
 April 12, 1990        2 for 1        $120.75 (Apr 12)      $60.75 (Apr 16) 
  
 June 26, 1991         3 for 2        $100.75 (Jun 26)      $68.00 (Jun 27) 
  
 June 12, 1992         3 for 2        $112.50 (Jun 12)      $75.75 (Jun 15) 
  
 May 20, 1994          2 for 1        $97.75 (May 20)       $50.63 (May 23) 
  
 December 6, 1996      2 for 1        $152.875 (Dec 6)      $81.75 (Dec 9) 
  
 February 20, 1998     2 for 1        $155.13 (Feb 20)      $81.63 (Feb 23) 
  
 March 26, 1999        2 for 1        $178.13 (Mar 26)      $92.38 (Mar 29) 
  
 February 14, 2003     2 for 1        $48.30 (Feb 14)       $24.96 (Feb 18)