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Apple, Inc to split stock 7-1 after Friday June 6 market close

post #1 of 113
Thread Starter 
Apple will complete its seven-for-one forward stock split after the market closes tomorrow, with the new post-split price reflected in trading on Monday.



Apple announced its stock split plan back in April, in conjunction with its plans to increase share buybacks and enhance its dividend payment.

While buybacks and dividends enhance the company's fundamentals and attract new interest from investors, the stock split Apple announced has no material affect on the actual value of the company's shares; the split simply multiplies the number of outstanding shares by seven and divides the value of each share by the same number, resulting in no net change in value.

Apple indicated that it elected to do a 7-1 split because, as the company noted, "we want Apple stock to be more accessible to a larger number of investors."

Splitting the stock results in smaller investors being able to more fluidly trade shares in smaller amounts, rather than selling shares that are now valued at around $645 per share. After the split, today's shares will be valued at around $92 each.

Shareholders of record will receive six additional shares after the market close on Friday, resulting in seven times their current holdings. Due to the split, Apple shares will be unavailable for extended after-hours trading on Friday June 6.

Additionally, all equity and option orders open as of the close of the market on June 6 will be canceled. Canceled orders will not be automatically re-entered.

Over the last week of WWDC, and running up to the stock split, Apple's shares have appreciated by more than $12, or around 2 percent.
post #2 of 113

The lower price will be great for my accounts that do not support dividend re-investment and fractional shares. Should end up with less cash hanging around at the bottom of the accounts. :)

post #3 of 113

$650 at close, anyone? $660?

Originally Posted by Marvin

The only thing more insecure than Android’s OS is its userbase.
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Originally Posted by Marvin

The only thing more insecure than Android’s OS is its userbase.
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post #4 of 113
So, do you feel AAPL will drop before COB Friday because of the current orders? Do these include shorts? I'm just wondering how much last minute insanity will happen before the split. Once the market opens Monday, do you see a lot of initial activity to reinstate equity and option orders? Will these mess everything up (stock down) or do you see it taking off?

I'm just glad Apple doesn't run its business like the insane stock market.
post #5 of 113

I found out one interesting thing about the spilt that I did not know.

 

No Mini Options for AAPL, if the price is below $90.00

post #6 of 113
Quote:
Originally Posted by pazuzu View Post

Breaking Apple news:

Dr. Dre buys Gisele and Tom Brady's mansion for $40M
http://pagesix.com/2014/06/05/dr-dre-buys-gisele-and-tom-bradys-mansion-for-40m/

 

After close tomorrow he'll have 7 smaller mansions for $5.71 million each.

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post #7 of 113
Quote:
Originally Posted by pazuzu View Post

Breaking Apple news:

Dr. Dre buys Gisele and Tom Brady's mansion for $40M
http://pagesix.com/2014/06/05/dr-dre-buys-gisele-and-tom-bradys-mansion-for-40m/

It's going to be a long commute each day to his office at Apple.

post #8 of 113
I'll be rich!,, 1wink.gif
post #9 of 113
Originally Posted by pazuzu View Post
Enough with your bullyings- you've been reported.

 

And now you’ve been reported for spamming every single thread with completely irrelevant garbage about the Beats deal. We know you don’t like it. Shut up and keep it in the Beats threads. Is that really so hard to get?

Originally Posted by Marvin

The only thing more insecure than Android’s OS is its userbase.
Reply

Originally Posted by Marvin

The only thing more insecure than Android’s OS is its userbase.
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post #10 of 113

Even when Apple dropped below $400 and I begged friends and family to buy at that price it was still a a fairly expensive buy. Just 10 shares would have cost $4,000 back then. Of course that $4,000 investment would now be worth over $6,400 and those 10 shares would now be 70 but hindsight is always 20/20. My point is most people like to buy at least 100 at a time. This will be a lot easier to do with one share hovering around $90 to $100. This could open AAPL up to potentially tens of millions of new investors that tend to be long term types that simply were priced out at the old valuation. It will also open the door for Apple to move to the Dow. 

post #11 of 113

I'm hoping Monday's stock price will then jump to $150 a share.

post #12 of 113
Quote:
Originally Posted by Tallest Skil View Post
 

$650 at close, anyone? $660?

 

Put me down for $647-650. Post-split I think it will explode to $100 quickly because the average investor will want to pile in.

Proud AAPL stock owner.

 

GOA

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Proud AAPL stock owner.

 

GOA

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post #13 of 113
Quote:
Originally Posted by gwmac View Post

Even when Apple dropped below $400 and I begged friends and family to buy at that price it was still a a fairly expensive buy. Just 10 shares would have cost $4,000 back then. Of course that $4,000 investment would now be worth over $6,400 and those 10 shares would now be 70 but hindsight is always 20/20. My point is most people like to buy at least 100 at a time. This will be a lot easier to do with one share hovering around $90 to $100. This could open AAPL up to potentially tens of millions of new investors that tend to be long term types that simply were priced out at the old valuation. It will also open the door for Apple to move to the Dow. 

People Who are influenced by the number of shares they hold should never buy any shares! What about warren buffets Berkshire shares. Are they at $100.000 now a piece?
post #14 of 113
Originally Posted by pazuzu View Post
How was that a Beats thread?

 

How was WHAT a Beats thread?

 
And god forbid if anyone were ever to report you for going off topic or hammering on a mantra.

 

Uh huh. Sure thing, boyo. Keep it to the Beats threads.

Originally Posted by Marvin

The only thing more insecure than Android’s OS is its userbase.
Reply

Originally Posted by Marvin

The only thing more insecure than Android’s OS is its userbase.
Reply
post #15 of 113
Quote:
Originally Posted by pazuzu View Post

How was that a Beats thread? Dr Dre is an Apple employee now and this a financial discussion.
And god forbid if anyone were ever to report you for going off topic or hammering on a mantra. lol.gif

It isn't really relevant to this discussion, as I'm certain you know. But if you really felt is was so important that you just had to include it, fine. Now drop it.
post #16 of 113
Quote:
Originally Posted by Slurpy View Post

**** off with your trolls. What a pathetic, petty individual you are.

I'm giving you a warning.
post #17 of 113
Quote:
Originally Posted by gwmac View Post

Even when Apple dropped below $400 and I begged friends and family to buy at that price it was still a a fairly expensive buy. Just 10 shares would have cost $4,000 back then. Of course that $4,000 investment would now be worth over $6,400 and those 10 shares would now be 70 but hindsight is always 20/20. My point is most people like to buy at least 100 at a time. This will be a lot easier to do with one share hovering around $90 to $100. This could open AAPL up to potentially tens of millions of new investors that tend to be long term types that simply were priced out at the old valuation. It will also open the door for Apple to move to the Dow. 

Stocks are easier to buy in standard blocks such as 50 shares, 100 shares, etc. selling too.
post #18 of 113
Will anybody freak out on Monday if they don't know about the split and see Apple's stock price displayed out of context?
post #19 of 113
Quote:
Originally Posted by walletinspector View Post

I'm hoping Monday's stock price will then jump to $150 a share.

Quote:
Originally Posted by SpamSandwich View Post

Put me down for $647-650. Post-split I think it will explode to $100 quickly because the average investor will want to pile in.

For my sake, I hope you're both right. Open at $100, and zip right to $150.
post #20 of 113
Originally Posted by Magic_Al View Post
Will anybody freak out on Monday if they don't know about the split and see Apple's stock price displayed out of context?

 

Of course they will. We’ll see new posters being morons and new posters being trolls. Not many, but they’ll exist.

Originally Posted by Marvin

The only thing more insecure than Android’s OS is its userbase.
Reply

Originally Posted by Marvin

The only thing more insecure than Android’s OS is its userbase.
Reply
post #21 of 113
Quote:
Originally Posted by oberpongo View Post


People Who are influenced by the number of shares they hold should never buy any shares! What about warren buffets Berkshire shares. Are they at $100.000 now a piece?

 

Shares are easier to buy at 50 or 100 share blocks.  Usually if you are buying 49 shares or less you won't get the best price since most are selling in 100 share blocks.  This has happenned to me many times.

 

Another fact is when you sell.  Some people only want to sell $200 of stock.  That would be impossible with Apple being $650.  You can't sell 1/2 a share.

post #22 of 113
Quote:
Originally Posted by Magic_Al View Post

Will anybody freak out on Monday if they don't know about the split and see Apple's stock price displayed out of context?

My broker just called me to let me know, and to also tell me that it won't be available for after hours trading Friday. He knows I know this, but he's calling all the Apple clients.

I haven't checked my emails to see if Scottrade is letting me know this on my account there.
post #23 of 113
Quote:
Originally Posted by walletinspector View Post
 

I'm hoping Monday's stock price will then jump to $150 a share.


 are you insane?

 

That would be a 61% increase in share price in ONE DAY.

That would be $335,000,000,000 of additional market cap in one day.

 

not going to happen.

 

I'd be happy if we see $100 before Sept

post #24 of 113
Quote:
Originally Posted by oberpongo View Post


People Who are influenced by the number of shares they hold should never buy any shares! What about warren buffets Berkshire shares. Are they at $100.000 now a piece?

I understand what you are saying but the stock market is as much about psychology as financial fundamentals. You cannot simply dismiss that. Panic sells often happen for no actual reason just from a false rumor and the same thing happens on false good rumors. If you look at stock orders, the vast majority from individual investors are in blocks of ten. There is just something more satisfying or comforting about buying 10 shares over 8, or 200 over 187. 

 

People that were simply priced out at the old valuation can now afford to buy AAPL. This cannot be underestimated. An entire new pool of buyers that will likely hold on to their shares longer term could bring a bit more sanity and stability to AAPL shares. 

post #25 of 113
Quote:
Originally Posted by melgross View Post


Stocks are easier to buy in standard blocks such as 50 shares, 100 shares, etc. selling too.

When you look at the realtime trades for AAPL being executed, you'll see that all sorts of random share lots are being traded every minute. Of course round numbers like 50,100,200 are common to see, but you'll also see plenty of odd numbers too.

 

These are the last trades for AAPL made right now at around 3 PM -

 

post #26 of 113

At the 7-1 split evaluation, AAPL would only need to reach a price of around $142 per share to be at the old $1,000 per share evaluation. I can see AAPL climbing to around $125 with just the iPhone 6 alone. 

post #27 of 113
Quote:
Originally Posted by melgross View Post

I'm giving you a warning.

I don't understand this. pazuzu is clearly a troll and does nothing but bash apple, derail threads, or post inane stuff. He contributes nothing. I don't get why 1) Slurpy is being warned for calling him out or 2) why pazuzu has not yet been banned.

   

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post #28 of 113
Quote:
Originally Posted by melgross View Post
For my sake, I hope you're both right. Open at $100, and zip right to $150.

 

OMG, so you really expect a 60% increase in stock price purely as a result of the split?  That would be like APPL going to $1,000 or so. And I don't hear even the most optimistic analysts forecasting that!  (Then again, the "analysts" aren't always very prescient.)

 

 

EDIT: Yeah, gwmac had the same idea and posted it moments before I did.  He wins.  :)

post #29 of 113
Quote:
Originally Posted by Magic_Al View Post

Will anybody freak out on Monday if they don't know about the split and see Apple's stock price displayed out of context?
Quote:
Originally Posted by gwmac View Post

I understand what you are saying but the stock market is as much about psychology as financial fundamentals. You cannot simply dismiss that. Panic sells often happen for no actual reason just from a false rumor and the same thing happens on false good rumors. If you look at stock orders, the vast majority from individual investors are in blocks of ten. There is just something more satisfying or comforting about buying 10 shares over 8, or 200 over 187. 

People that were simply priced out at the old valuation can now afford to buy AAPL. This cannot be underestimated. An entire new pool of buyers that will likely hold on to their shares longer term could bring a bit more sanity and stability to AAPL shares. 

Well, actually, the chance is that it will become more volatile. When more small traders join in, sell and buy on rumors becomes more prevelant.
post #30 of 113

Monday would be the perfect time for the manipulators to start making their move.

 

Look how optimistic everybody is.:lol:

 

Either way, it'll be interesting to see what happens to the stock action post split.

post #31 of 113
Quote:
Originally Posted by gwmac View Post

At the 7-1 split evaluation, AAPL would only need to reach a price of around $142 per share to be at the old $1,000 per share evaluation. I can see AAPL climbing to around $125 with just the iPhone 6 alone. 

For the trillion dollar market cap it's a little higher:

1,000,000,000,000 market cap ÷ 861,380,000 shares = $1160.93 per share ÷ 7 (split) = $165.85 per share

"The real haunted empire?  It's the New York Times." ~SockRolid

"There is no rule that says the best phones must have the largest screen." ~RoundaboutNow

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"The real haunted empire?  It's the New York Times." ~SockRolid

"There is no rule that says the best phones must have the largest screen." ~RoundaboutNow

Reply
post #32 of 113
Quote:
Originally Posted by Apple ][ View Post

When you look at the realtime trades for AAPL being executed, you'll see that all sorts of random share lots are being traded every minute. Of course round numbers like 50,100,200 are common to see, but you'll also see plenty of odd numbers too.

These are the last trades for AAPL made right now at around 3 PM -



Yes, but for complex reasons, it's easier with even blocks, And a bit cheaper as well. I can't explain all of this, but it's well known.
post #33 of 113
Quote:
Originally Posted by PatchyThePirate View Post

I don't understand this. pazuzu is clearly a troll and does nothing but bash apple, derail threads, or post inane stuff. He contributes nothing. I don't get why 1) Slurpy is being warned for calling him out or 2) why pazuzu has not yet been banned.

There's a difference in bashing Apple, and bashing another poster. I don't like reading trolls either, and I've kicked a number off. But it's the way it's written. People have the right to their opinions.

If you post to me that something I said was idiotic, I might not be happy, but it's your right to think so. But if you post that I'm idiotic, that's not ok. That's a direct insult, and not allowed. And I'm pretty liberal about insults to my person.
post #34 of 113
Quote:
Originally Posted by melgross View Post



Well, actually, the chance is that it will become more volatile. When more small traders join in, sell and buy on rumors becomes more prevelant.

 

Really? I have always believed that your typical small time investors are more long term types that will hold for years or even decades. The headaches with taxes and capital gains is but one reason. Also the type of people I am talking about are teachers, construction workers, small business owners, etc.. who are simply far too busy to actively monitor their Ameritrade accounts and buy and sell often. I could be wrong of course but I think individual, middle class type investors tend to invest more with an eye for retirement than short term. 

post #35 of 113
Quote:
Originally Posted by Apple ][ View Post
 

When you look at the realtime trades for AAPL being executed, you'll see that all sorts of random share lots are being traded every minute. Of course round numbers like 50,100,200 are common to see, but you'll also see plenty of odd numbers too.

 

These are the last trades for AAPL made right now at around 3 PM -

 

Small odd lots aren't that uncommon at all... as you have shown.

 

... and the price is never any different for 10 shares or 1000 shares +.

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post #36 of 113
Quote:
Originally Posted by TeaEarleGreyHot View Post

OMG, so you really expect a 60% increase in stock price purely as a result of the split?  That would be like APPL going to $1,000 or so. And I don't hear even the most optimistic analysts forecasting that!  (Then again, the "analysts" aren't always very prescient.)


EDIT: Yeah, gwmac had the same idea and posted it moments before I did.  He wins.  1smile.gif

Sheesh! Of course not!

But people buy lotto tickets, don't they?
post #37 of 113
Quote:
Originally Posted by island hermit View Post
 

Small odd lots aren't that uncommon at all... as you have shown.

 

... and the price is never any different for 10 shares or 1000 shares +.

 

The price paid per trade depends on the trading platform of course, but you're right, I'm on scottrade and it makes no difference if I were to buy 1 share of AAPL or 100 shares of APPL, both trades would cost me $7 each.

post #38 of 113
Quote:
Originally Posted by melgross View Post

Well, actually, the chance is that it will become more volatile. When more small traders join in, sell and buy on rumors becomes more prevelant.

Yes, but I'd argue that with Internet-based trades being so cheap and buying 1 share or 1,000 shares costs the same thing that this has already built into the system. So this split would be like adding electrons to an atom then worrying about the mass it's gained. It's definitely added mass but it's such a minute amount compared to the proton and neutron that it's practically inconsequential. IOW, I expect we'll see no changes in the stocks volatility.

"The real haunted empire?  It's the New York Times." ~SockRolid

"There is no rule that says the best phones must have the largest screen." ~RoundaboutNow

Reply

"The real haunted empire?  It's the New York Times." ~SockRolid

"There is no rule that says the best phones must have the largest screen." ~RoundaboutNow

Reply
post #39 of 113
Quote:
Originally Posted by SolipsismX View Post

 IOW, I expect we'll see no changes in the stocks volatility.

 

I'm not so sure about that. I've seen plenty of stocks that have acted strangely post split.

post #40 of 113
Quote:
Originally Posted by gwmac View Post

There is just something more satisfying or comforting about buying 10 shares over 8, or 200

I think most investors should have a fixed dollar amount In their head that they want to invest. Say $5k and then they just see how many shares that will get them. If the price rises they will just buy fewer and if it falls they buy more.

It's like I don't mind if gas prices go up or down. I always fill for $50;-)
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