Apple announces four-for-one stock split

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Comments

  • Reply 21 of 27

    Thank you to Apple Management for making decisions that customers want; thank you to the people that dream, design, build, and market Apple's products, and tank you to the customers that buy them.  This shareholder appreciates your work.

    -Jeffy 

  • Reply 22 of 27
    MacPro said:
    pslice said:
    We are excited about this split. We started buying with the last split. Thanks, Apple!
    You do realize it makes zero difference to anything not to mention you can buy fractions of shares?  It is 100% a psychological move that apparently works!  ;)
    Since what drives stock prices is Fear and Greed, psychological moves make all of the difference!

    SpamSandwich
  • Reply 23 of 27
    MacPro said:
    The grandson we never hear from and for whom we set up an educational IRA which has 100% AAPL in it as we did for all the grandkids, just left a message...  he needs to talk!  'He heard he has 4 x as much Apple stock now.'  ROFL.
    Seriously? Never have a fund completely dependent on one stock. That's a recipe for disaster. He needs to diversify. 
  • Reply 24 of 27
    SpamSandwichSpamSandwich Posts: 33,408member
    vacusuck said:
    MacPro said:
    The grandson we never hear from and for whom we set up an educational IRA which has 100% AAPL in it as we did for all the grandkids, just left a message...  he needs to talk!  'He heard he has 4 x as much Apple stock now.'  ROFL.
    Seriously? Never have a fund completely dependent on one stock. That's a recipe for disaster. He needs to diversify. 
    Personally, I’m diversified but the increase in AAPL stock value has completely unbalanced my stock mix. I haven’t bothered rebalancing it and it has paid off spectacularly.
  • Reply 25 of 27
    maestro64maestro64 Posts: 5,022member
    crowley said:
    maestro64 said:
    Why split when they been trying to remove shared from the market, just just undid what Apple has been doing for the last 5 yrs. 
    Apple don't care how many shares are out there, why would they?  They care about increasing the value of holding shares to the shareholder, and a contributor to value is the tradeability of shares.  A split reduces the book price of a single share, which increases tradeability. 

    They can continue buying back shares, only now they'll back 4 shares for every 1 pre-split.  The number of shares doesn't matter, the value does.
    The part you missed, they do not have cash to buy back as many shares like they were. Most of the buy back happen when they were sitting on $300B, and they issues bonds since most of that money was sitting offshore, Apple is not sitting on as much money and has a lot more debt. Instead of having ~4B shares out standing they will have  ~12B.  I understand that value of 100 shares at $400 is the same as 400 shares at $100. The issue I have is the fact that there is more now, and when there is more of anything, it's not as desirable to own than something that  more people want than they can buy. The stock is not going to go up as % in the same time period as it would have with less share available. It's simple supply and demand, Apple just added 4 x the supply against more or less constand demand. I would rather see an increase of 30% in year with less outstanding share than 10% with lots of shares. If you had $10,000 to invest and only got a fractional share of Apple stock and saw 30% return on your money or you got lots of share and only got 10% which one do you like. The math is not hard here, but most people look at how many shares they are getting not the % return on the $ invested. 

    If you do not think this is real go look at what Apple stock did for good long time after the 7 to one split. It hardly went up until they announced the buy back and dividends. They can not repeat that again. 

    The moral here the less shares available for a company doing as well as Apple means each of those shares have higher perceived value and as long term holder of Apple stock they just made all my shares less desirable.
  • Reply 26 of 27
    crowleycrowley Posts: 9,082member
    maestro64 said:
    crowley said:
    maestro64 said:
    Why split when they been trying to remove shared from the market, just just undid what Apple has been doing for the last 5 yrs. 
    Apple don't care how many shares are out there, why would they?  They care about increasing the value of holding shares to the shareholder, and a contributor to value is the tradeability of shares.  A split reduces the book price of a single share, which increases tradeability. 

    They can continue buying back shares, only now they'll back 4 shares for every 1 pre-split.  The number of shares doesn't matter, the value does.
    The part you missed, they do not have cash to buy back as many shares like they were. Most of the buy back happen when they were sitting on $300B, and they issues bonds since most of that money was sitting offshore, Apple is not sitting on as much money and has a lot more debt. Instead of having ~4B shares out standing they will have  ~12B.  I understand that value of 100 shares at $400 is the same as 400 shares at $100. The issue I have is the fact that there is more now, and when there is more of anything, it's not as desirable to own than something that  more people want than they can buy. The stock is not going to go up as % in the same time period as it would have with less share available. It's simple supply and demand, Apple just added 4 x the supply against more or less constand demand. I would rather see an increase of 30% in year with less outstanding share than 10% with lots of shares. If you had $10,000 to invest and only got a fractional share of Apple stock and saw 30% return on your money or you got lots of share and only got 10% which one do you like. The math is not hard here, but most people look at how many shares they are getting not the % return on the $ invested. 

    If you do not think this is real go look at what Apple stock did for good long time after the 7 to one split. It hardly went up until they announced the buy back and dividends. They can not repeat that again. 

    The moral here the less shares available for a company doing as well as Apple means each of those shares have higher perceived value and as long term holder of Apple stock they just made all my shares less desirable.
    I think that's bonkers.  No share trader with an ounce of sense cares how many shares there are out there, they care about whether the stock will generate a return.  The supply and demand is exactly the same because the value of stock is exactly the same.  Stock traders decide how much they want to invest in the stock, and then calculate how many shares that is, not the other way round. 

    The split 7:1 coincided with a period of doubt about whether Apple would continue to grow profit.  You're misattributing the cause of the growth slowdown there.
    ronnSpamSandwich
  • Reply 27 of 27
    fastasleepfastasleep Posts: 5,836member
    maestro64 said:
    crowley said:
    maestro64 said:
    Why split when they been trying to remove shared from the market, just just undid what Apple has been doing for the last 5 yrs. 
    Apple don't care how many shares are out there, why would they?  They care about increasing the value of holding shares to the shareholder, and a contributor to value is the tradeability of shares.  A split reduces the book price of a single share, which increases tradeability. 

    They can continue buying back shares, only now they'll back 4 shares for every 1 pre-split.  The number of shares doesn't matter, the value does.
    The part you missed, they do not have cash to buy back as many shares like they were. Most of the buy back happen when they were sitting on $300B, and they issues bonds since most of that money was sitting offshore, Apple is not sitting on as much money and has a lot more debt. Instead of having ~4B shares out standing they will have  ~12B.  I understand that value of 100 shares at $400 is the same as 400 shares at $100. The issue I have is the fact that there is more now, and when there is more of anything, it's not as desirable to own than something that  more people want than they can buy. The stock is not going to go up as % in the same time period as it would have with less share available. It's simple supply and demand, Apple just added 4 x the supply against more or less constand demand. I would rather see an increase of 30% in year with less outstanding share than 10% with lots of shares. If you had $10,000 to invest and only got a fractional share of Apple stock and saw 30% return on your money or you got lots of share and only got 10% which one do you like. The math is not hard here, but most people look at how many shares they are getting not the % return on the $ invested. 

    If you do not think this is real go look at what Apple stock did for good long time after the 7 to one split. It hardly went up until they announced the buy back and dividends. They can not repeat that again. 

    The moral here the less shares available for a company doing as well as Apple means each of those shares have higher perceived value and as long term holder of Apple stock they just made all my shares less desirable.
    Why would the quantity of shares change the balance of supply and demand? The demand for $1000 worth of Apple stock is unchanged whether that breaks down into ten shares or three. "Simple supply and demand" my ass.
    ronn
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