Forum Archive Index - October 2001

["Paul Frost" <frostpt@ihug.co.nz>]

I feel their is little to be gained from a share split.

 

In the 70's and 80's bonus issues were extremely popular, but these days they are becoming increasingly rare (apart from Ron B.'s

GPG).

 

Share splits and bonus issues fool no one apart from the most naive of investors.

 

Over the Tasman share prices of over $10 are relatively common and are becoming more so in N.Z. 

 

I think the N.Z. investor is sophisticated enough to handle a share price of at least $25.

 

Surely a record of increasing profits,dividends and a rising share price is the best incentive to encourage investors to buy a companies shares.

 

I feel a SKC share split may have some very short term benefit, but over the long term it will not increase shareholder wealth.

 

Regards.