What do you think? Its above 200 right now

 

Here ya go, young jedi...



http://www.investopedia.com/articles/01/072501.asp

 

I'm not sure that answered the question.

My guess is it will probably split 3-1 at some point.

 

I know splits dont change fundamental value, but in light of this:



buying before a split may be a good idea. When the stock splits, people generally may perceive that as a good thing, and then go ahead and invest in the stock, causing it to rise. Also, the stock will then probably become more affordable to smaller investors, causing a slightly greater demand (increasing the price). So, now the question is: is this a good time to get into Google?

 

Possibly. Then there's the old adage - buy low, sell high. I'd buy a ton of shares and buy some puts as a hedge.

 

Hhahaa, as of right now, GOOG is up almost $14 at $317.91...

 

$317? you sure about that?

 

Google's Founders Know the Folly of Stock Splits: David Pauly
2005-07-26 00:04 (New York)


(Commentary. David Pauly is a columnist for Bloomberg News.
The opinions expressed are his. Published in September issue of
Bloomberg Markets magazine.)

By David Pauly
July 26 (Bloomberg) -- Google Inc. stock has rapidly become
one of the highest-priced names on the U.S. market. Shares of the
popular Internet search engine closed yesterday at $295.85, up 248
percent from $85 at the 2004 initial public offering.
Any hot Internet company of the past would already have split
its stock, betting that a lower share price would keep the
speculation going.
Google's young co-founders, however, resist a split because
of their desire to bend it like Buffett.
Sergey Brin, 31, and Larry Page, 32, are unabashed admirers
of Warren Buffett, 74, who runs investment company Berkshire
Hathaway Inc. Buffett decries stock splits, saying they produce
volatility. Berkshire Hathaway A shares closed at $84,000
yesterday.
At Google's first shareholders meeting, in May, Brin and
Chief Executive Eric Schmidt said there were no plans to split
their company's stock. That was smart. Google shares were frothy
enough, trading at more than 100 times trailing 12-month earnings.
A high price should help keep speculators in line. Taking a
flier on 100 shares of Google at $29,585 is far different from
gambling $8,500 for 100 shares at the IPO.

Over and Over

In the late 1990s, many companies set themselves up for the
stock market plunge that was to come by splitting their shares.
Internet retailer Amazon.com Inc. split a total of three times in
1998 and 1999. In late 1999, the stock sold for $113, adjusted for
the splits. By yesterday, Amazon shares had plummeted 66 percent
from that peak.
Without splits, the high Amazon price would have been $1,356.
If the company had let the shares rise, prices measured in
hundreds of dollars would have stopped many investors from jumping
in.
During the bubble, shares of Cisco Systems Inc. seemed far
less of a gamble than Amazon's. Cisco was, and is, the world's
biggest maker of computer networking equipment. But five splits
from 1996 to 2000 helped boost Cisco stock to an adjusted $82 in
early 2000 -- from which it has plunged 77 percent. Without
splits, Cisco's peak price would have been $1,476.

Their Way

Sky-high Google shares may prevent investments from the small
shareholders the company courted when it allowed IPO orders for as
few as five shares. But Google wants to be different.
Like Buffett's Berkshire, it plans no dividends and refuses
to feed earnings forecasts to analysts. Brin and Page also plan an
annual letter to shareholders, hoping to match the one Buffett has
made famous. Google does, however, continue to grant stock
options, a Buffett no-no.
Google could sensibly split its stock if a price of $1,000 or
more dimmed interest in the shares -- while still keeping the
shares high enough to deter goofy buying. In 1996, Buffett was
forced to effectively split Berkshire stock when ``promoters''
(his description) threatened to buy the shares and resell them in
smaller denominations.

Top Dogs

The resulting Berkshire B shares traded at $2,805 yesterday
and were the second-highest-priced U.S. stock after Berkshire A.
Other high-priced U.S. stocks included Washington Post Co., in
which Berkshire has a 22 percent stake and on whose board Buffett
sits, and NVR Inc., a homebuilder (Ryan Homes) and mortgage
banker. Google was just shy of the top 10.
While Page and Brin show good sense and Google profit keeps
multiplying -- second-quarter earnings jumped more than four times
-- the company's shares are still risky. Search-engine companies
such as Yahoo! Inc. and Microsoft Corp. undoubtedly provide stiff
competition.
The biggest risk: Virtually all of Google's revenue comes
from selling advertising, which invariably slumps when the economy
turns down. You wonder how high Google shares would have to rise
to bring investors back down to Earth.

 

short answer -- no.

splits may create short term upswings since ppl think "wow this is only 10 dollars it must be cheap", but in the long term splits have no effect on price. ppl also like splits because they give the signal from mgmt that the price is going to rise further. as the above post showed though, goog has no interest in pleasing the street over the short term (hence no split, no guidance, no rosy/bs stories during the cc's).