DHI splits 3/2 on 1-12

[shannonkeo]

I saw today DHI is planning a split 3/2 on 1-12. They are saying it will be effected as a 50% stock dividend. What does that mean to me as a shareholder versus some other type of split? What other types of splits effects are there?

I'm getting real close to my 15% on this one, and am wondering if it is worth hanging on to until the split and see what happens.

Buying seems to be easy, its figuring out when to sell that is so hard. If I was such a great picker like MM, I would always have something else to put my money into, but in this case I don't. I'm in the same boat with HOV, which I bought at the same time as DHI. Its already ran up 15%, but I don't know whether to sell or not, or what else to put it in.

Any insight is appreciated.

[MikeB]

What a stock split (aka stock dividend) has the effect of doing is increasing the total number of outstanding shares. From my limited
understanding, there's two reasons companies split their stock. One, to increase the stock's liquidity to limit the stock price's
is less volitility. Two, to keep the stock's price in a range where it's psychologically appealing (typically $20 - $100).

Think of a split this way.. there's a pie. It's initially cut it into 4 pieces... you own 1 piece. If each of those pieces
are cut in half (a 2-1 split), you've now got 2 pieces of pie; however, you don't have any more pie than you had before the split.

In short, there's no technical benefit owning a stock on the day of a split.

- MikeB