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HK Desai, Qlogic's CEO, was on CNBC this a.m. and he explained the rationale behind the stock split--the intent was to increase liquidity and attract more retail investors since there was already a high degree of institutional ownership.

A point on liquidity--the higher liquidity lowers the risk premium, thus lowers the cost of equity, hence increases the present value of future cash flows. In other words, the stock price should positively benefit from the stock split.
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