Friday, November 9, 2007

Sun Investors approve a 4-for-1 "reverse split"

Sun's investors have approved a 4-for-1 reverse split. This should move the price for a share of Sun stock (symbol JAVA) from the $5 range to the $20 range. A number of large investment funds will not invest in stocks in the $5 range, so the effect of the reverse split should be to make Sun viable option for the managers of those fund.

According to Jonathan , Sun "demonstrated our confidence in the business by buying back a massive $1.25 billion in JAVA shares." Many stock traders place a lot of weight on EPS (earning per share). By improving the earning and reducing the number of shares, Sun is clearly trying to improve its EPS.

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