It's been so long since IBM has seen a stock split, Wall Street has probably forgotten that it's even possible. But you can bet Sam Palmisano's last dollar that Big Blue is itching to do one, and by boosting its dividend and announcing yet another massive share repurchase campaign, it's one step closer perhaps to its first stock …
For cache read cachet
Google, in particular, has a very large amount of cache (and both Google and Berkshire Hathaway have a lot of cash), but I think the word you're looking for is cachet: superior status.
IBM .... The Elephant Dinosaur in the Room.
Methinks a share price dive towards half its current overvaluation rather than a stock split is a better surer bet for short gamblers into long game players.
A pedant writes...
"Google and Berkshire Hathaway are two very pricey stocks that don't split"
Berkshire DO split. Firstly, they had two classes of share, the B share worth a thirtieth of the value of the A share (which is a de facto split IMHO). The B share was recently split and is now worth 1/1500 of the A share.
Sams leaving present
This is as much about protecting the greed of the senior managers as the greed of Wall Street. Stock exchanges and CEOs are not interested in the long term viability of the company, only their wallets today.
Thats why Sam spends billions propping up the share price while refusing to award pay increases to the majority of its employees and when it does they are small beer compared to the 18% increase in dividends. The recent row in the UK over early retirement and pensions was the company engineering a way of forcing staff into taking early retirement rather than offering redundancy, thus saving the parent company millions.
- NASA boffin: RIDDLE of odd BULGE FOUND on MOON is SOLVED
- Microsoft's Euro cloud darkens: US FEDS can dig into foreign servers
- Worstall on Wednesday YES, iPhones ARE getting slower with each new release of iOS
- Pic 7 Amazing Experiments on NASA's 2020 Mars Rover – Including Oxygen Generation
- Plug and PREY: Hackers reprogram USB drives to silently infect PCs