Stocks that are splitting do better, study finds

The Ticker

March 23, 2001|By JULIUS WESTHEIMER

MONEY MATTERS:

"A study of 12,000 stocks found that split stocks outperformed those that didn't," says Money magazine. "There's no logical reason - two nickels aren't worth more than a dime - but if you're considering two similar stocks and one announces a split, go with that one."

"The top-performing investment newsletters over the last 10 years were, in order, The Prudent Speculator, OTC Insight, Equity Fund Outlook, The Insiders and Timer Digest." (Hulbert Financial Digest)

"Weed your stock garden periodically," says Moneypaper. "Polaroid Corp. in the 1950s was considered one of the greatest growth stocks of all time, but by early 2001 it had lost almost 85 percent of its value."

"As you prepare your 2000 tax return, remember that the IRS puts a lot of effort into document-matching. Make sure income on your W-2 and 1099 statements is reflected on your tax return."(CNBC-TV)

"We didn't get a `Bush bounce' because we focused on the election and the Florida recount. A lot of managers weren't making portfolio changes, but they soon will." (Eugene Profit, Profit Value Fund)

"Just because a stock goes from $80 to $18, like Cisco Systems Inc., doesn't mean it's cheap. It's only cheap when no one wants to own it." (Robert Stovall, money manager)

"Inflation-protected Savings Bonds look good. In today's low-interest-rate climate, the `I' bond offers a decent yield and almost unlimited tax deferral." (S&P Outlook)

"We're in for a shock. Profit margins will dive, causing many glamour tech companies to post sudden earnings losses."(Huss- man Investment Insight)

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