Updating AEROPOSTALE INC., DUNDEEWEALTH INC. and ALARMFORCE INDUSTRIES

Article Excerpt

AEROPOSTALE INC. $34.83 (New York symbol ARO; SI Rating: Extra Risk) (646-485-5410; www.aeropostale.com; Shares outstanding: 62.7 million; Market cap: $2.2 billion; No dividends paid) is splitting its shares on a 3-for-2 basis. Shareholders will get one additional Aeropostale share for every two shares they hold. The company will have 94 million outstanding shares after the split. It now has 62.7 million outstanding shares. When a stock splits, the percentage of the company that you own is unchanged. You simply hold more shares, which are each worth proportionally less. Some studies have shown that companies that split their shares are better investments than those that do not carry out splits, but that confuses cause and effect. When a company’s stock goes up a great deal, it has an incentive to split the stock and stop it from going to higher prices where it might be less liquid. Aeropostale is still a buy. DUNDEEWEALTH INC. $14 (Toronto symbol DW; SI Rating: Speculative) (1-800-301-6745; www.dundeewealth.com; Shares outstanding:…