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Cramer Is Wrong: The Stock Split Is Meaningless

By Tim Beyers - Apr 5, 2013 at 7:30PM

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A 4-for-1 split might be good for managing perception, but that’s all.

Recently, CNBC commentator Jim Cramer took to the air to declare that stock splits matter, and that, in particular,'s (CRM -3.26%) plan to split 4-for-1 could send the shares higher.

He's wrong, says Tim Beyers of Motley Fool Rule Breakers and Motley Fool Supernova in the following video. The Salesforce stock split will only help those who don't fully understand the value of the underlying business. Management, meanwhile, says it wants to split Salesforce stock in order to increase liquidity for issuing equity options to employees (which it already does, in bulk).

As it stands, Salesforce's stock will officially split on April 18. Do you see the stock moving higher in the months following? Why or why not? Please watch Tim's take, and then leave a comment to let us know what you think of Salesforce's business prospects.

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