NVIDIA stock - armchair expert analysis needed

Hehe, well I should be able to get this stuff right, else I should be looking for a new job!

 

You manage money for a living?

 

splits tend to mean that the company has a rosy outlook for their immediate future.

 

I wish I'm currently a developer in the asset management division but part of the job description is knowing the financial bits very well and there is a lot of firm sponsored training to facilitate that (paying for MBA's, on (firm) campus courses, online learning etc). I'm also pursuing formal education on my own - the career path here is quite flexible.....

 

Developer? As in IT? Yeah, I got to know some insurance stuff pretty well that way, to the point where I actually think of myself as a PC and PL insurance guy more than an IT guy these days.

 

Yep IT, but I don't particularly like that term since it encompasses a very broad range of job descriptions and levels in the firm. Application developers are very closely coupled to the business units they code for and gain a different kind of experience compared to pure IT folks.

If you're on a team that develops bond pricing infrastructure/software, you better know what a yield curve is and how to generate/use one! You definitely have to gain more financial knowledge than technical knowledge in order to be an effective employee - java today is java tomorrow. At the same time you're completely free to use the latest available technology - open source and freeware included.

 

Oh yeah, I hear you. Some companies don't see that as well, alas, and want to hoard developer assets away from the business units --they don't want them contaminated with sympathy and understanding for the users . The model you're talking about has always made much more sense to me, tho it does make for fewer "widgets" (which is why IT resource managers tend to like the other model and stuff more business analysts in between to translate for both sides).

Anyway, pleasant digression. . .

 

Aah finance

Every time I've seen financial analysis performed on this board, I've wanted to register and join the discussion. This topic finally got me to do so, because equity analysis is something near and dear to me (OK, more dear than near, since I'm not an analyst though many of my friends are).

I won't go into any boring details, but this article

http://www.findarticles.com/p/articles/mi_m4130/is_1_31/ai_83995452

is quite interesting, and also cites several other useful research papers. For those who find 25 pages of research boring, however, the conclusions begin on page 26. And finally, for those who would rather just know the result, it is this:
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There is weak evidence that stock splits convey a positive signal. For firms where the split causes a reduction in short interest, we find somewhat better operating performance in the five years before the split. After the split, there is little difference in performance between firms with reductions in short interest and others. Splits appear to reveal managers' confidence that their firms' exceptional pre-split performance is permanent, rather than that the firm's future performance will be exceptional.

...

However, the evidence that supports this interpretation should be viewed with caution, because the measures of a positive signal pertain to operating performance over a long pre-split time interval, rather than over a shorter period closer to the split announcement. Moreover, when we introduce liquidity effects as control variables in a multiple regression, the evidence in favor of the signaling hypothesis becomes statistically weaker.

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Hope this helps a bit.

 

Well, thanks for stopping in! Always nice when a lurker de-cloaks. That ID looks familiar tho, like a serial number for an IBM machine of my acquaintance.

 

Thanks

Thanks for the welcome geo. Also, you recognize IBM HD serial numbers? I'm not sure if that's impressive or disturbing.

 

Yep, thanks for the post and the link. geo and others will probably agree with the second paragraph:

Ivory tower investors! /shakes fist

(I thought that maybe you swapped your ID and your password. )