Costco & DEI. Stock price - damn I had no idea.

[ProfessorGAC]

18. If Cash Flow Stays High...

...there's not a really good reason to split.
Splits are typically driven by a desire to raise cash without borrowing.
Let's say a company has a $200 stock and has 4 million shares in treasury, which with proxy & insider shares result in 30% control.
They split by 2 and sell 2 million shares, still holding 6 million.
Now, they've got $400 million in cash, and any insurance company would lend them $350 million additional (after all they already have 53.33% equity in the new project.). They now have ¾ of a billion for expansion, acquisition or integration. And, they still have a plurality interest of 22.5%.
If Costco's cash flow is string, they can just let it ride.