2 Stocks Splitting Shares

Regardless of the reason, although, markets tend to view splits as positive events, and a company's shares can get a short-term boost from the news. Nevertheless if the company isn't a good, long-term business, it doesn't matter if its shares split, or whether you buy them earlier or afterwards.

Can you hear me now? Hoping to dial up future growth and keep its stock affordable, VoIP (Voice over Internet Protocol) company magicJack VocalTec effected a 2-for-1 stock split last month that should as well improve liquidity in its stock. At $24 a share pre-split, it wasn't specifically that pricey, nevertheless it was nearly its 52-week highs. The move could attract more attention to the stock.

Despite pioneering voice over IP calling and selling some 8 million magicJacks through some cheesy TV advertising, magicJack VocalTec isn't as then known in the stock world. Vonage and Skype have come to the forefront of the VoIP industry, with Vonage recently becoming profitable. However, it was VocalTec that created InternetPhone back in 1995, and it merged with magicJack parent YMAX in 2010 to create magicJack VocalTec.

Just previously splitting its shares last month, the VoIP innovator canceled a planned share offering that weighed on the stock beforehand because it would have diluted shareholders by about 14%. It said sales of a new model jack should give it the earnings it had been expecting from the offering.

Eyebrow or two as so then

I have to admit to arching an eyebrow or two as so then, so I've gone to CAPS and marked magicJack to underperform the market. Add the VoIP operator to your watchlist to keep abreast of developments, and add your opinion of the split and other moves on the magicJack VocalTec CAPS page.