The timing of this split is brilliant. I can't wait to start buying my Apple stock 15% cheaper than you all too! This is the time to buy.. the stock is still reasonably cheap (some analysts have it at $100 targets), so there's money to be made. Apple should have great quarterly numbers as long as they can reach a supply-demand balance soon on the mac mini and shuffle.
But that was pre-split. The equivalent target price post-split would be $50. Though it certainly can (and perhaps will) go higher than $50. I wouldn't get too excited about buying at $40 (split-adjusted) and it suddenly going to $100. (though my retirement account would be quite happy if it did)
But that was pre-split. The equivalent target price post-split would be $50. Though it certainly can (and perhaps will) go higher than $50. I wouldn't get too excited about buying at $40 (split-adjusted) and it suddenly going to $100. (though my retirement account would be quite happy if it did)
Why not? it's still the same percentage gain. You're still making the same amount of money because you own double the shares.
Each shareholder of record at the close of business on February 18, 2005 will receive one additional share for every outstanding share held on the record date, and trading will begin on a split-adjusted basis on February 28, 2005.
Does this mean that there will be no trading for 10 days?
No, it just means if you purchase the stock after the 18th, you don't qualify for the split.
But in that case, you would be purchasing for $80, and then they would be worth $40 a couple of days later? No? Am I being really stupid and missing something because I have been working my brain too hard today or something?
But in that case, you would be purchasing for $80, and then they would be worth $40 a couple of days later? No? Am I being really stupid and missing something because I have been working my brain too hard today or something?
Pretty much. Basically a stock split works like this: you get double the shares at half the price and half the earnings. Basically, nothing changes whatsoever. It's still valued the same. Doubling the available shares from 900 million to 1.8 billion is how you get half the earnings per share. Therefore, if you have a certain amount of money invested in say, 100 shares of AAPL.. it becomes 200 shares at half the price, and you still own the same amount of money in the stock. That $100 price target does indeed become $50, but a $10 gain from 40 to $50 is still the same % gain as a $20 gain from 80 to $100. That's as simple as I know how to explain it.
Keep in mind that a company's stock is a way for the company to essentially make a ton of money. People are INVESTING in them.. someone posted earlier that if the stock rises back to $80, Apple has essentially doubled the amount of money invested in the company. So to reiterate, right now Apple has 900 million shares are $80. Once the stock splits, they'll have 1.8 billion shares at around $40. That's no change in value. Now, once the stock climbs again, they're automatically making money. The appeal of the split is to attract more investors at a lower entry price. For people that already own AAPL or want to get in on the split, the time to buy is before Feb. 18th. Just keep in mind that the stock isn't projected to hit $100 after the split.. it's $50, so it will take a while for the stock to gain value. This isn't instant money for AAPL.. but for a company on the rise, it's a great way to spur investment.
Just an interesting fact I heard on CNBC.. this is only the 3rd time in AAPL's 25-year public trading history that they've split the stock.
Pretty much. Basically a stock split works like this: you get double the shares at half the price and half the earnings. Basically, nothing changes whatsoever. It's still valued the same. Doubling the available shares from 900 million to 1.8 billion is how you get half the earnings per share. Therefore, if you have a certain amount of money invested in say, 100 shares of AAPL.. it becomes 200 shares at half the price, and you still own the same amount of money in the stock. That $100 price target does indeed become $50, but a $10 gain from 40 to $50 is still the same % gain as a $20 gain from 80 to $100. That's as simple as I know how to explain it.
Just an interesting fact I heard on CNBC.. this is only the 3rd time in AAPL's 25-year public trading history that they've split the stock.
I get all that, but from what you said above, you would have to be absolutely stupid to buy between the 18th and 28th. You would be buying say 10 at $80, but then have 10 at $40 each since the doubling only applies if you bought before the 18th. This right?
Personally, I think buying at this price now is a little high anyhow, but a stock split is a long-term thing. The stock is up to day because people are buying a lot of it. They want to double their shares for the long-haul.
But the stock split is essentially an illusion of the stock being cheaper, to spur investment from buyers that will miss out on the stock split, ie a month or two down the road. You're only stupid if you haven't already bought the stock
I get all that, but from what you said above, you would have to be absolutely stupid to buy between the 18th and 28th. You would be buying say 10 at $80, but then have 10 at $40 each since the doubling only applies if you bought before the 18th. This right?
If you trade between the 18th and the 28th, you'll get the split shares when they split. You pay the $80, but the seller agrees (by OKing the sale) to transfer you the split shares once they come out on the 28th. This is all done via the markets and computers and all, and done all the time (stocks split regularly) so its not like someone's going to screw you over or anything.
Keep in mind if you use Quicken (prior to 2005, I believe) to track your stocks, besides being one large dip in the graphs, Quicken will completely and utterly screw up your cost basis, ROI, %gain, and pretty much anything else. And it will continue to do this even if you sell all your stock and buy more later (I had some that split when it was $120 - the good ol' days - or so, and sold that long ago. I recently bought some at 38 or so, and quicken had different values for ROI and %gain [unless you get dividends or such, these two numbers should be exactly the same]. Its apparently a well known problem, one of many that Intuit acknowledges but never fixes. Goes along with their net worth graphs, which seems to add my investment accounts twice and shows a higher number than the net worth report - man how I wish there was some better option out there than Quicken).
A split is excellent to move a stock and increase stock investor participation.
Say you have 2000 shares at $80/share.
With the split you have 4000 shares at $40/share.
Which is more likely to happen? Investment to raise the stock above $80/share or investment to raise the stock above the split adjusted $40/share?
When that stock is back up at $80/share and you have 4000 shares you have effectively doubled your value. To get the equivalent pre-split the stock would have to trade at $160/share.
That won't happen and Apple knows it. Stagnation would set in and slow down the momentum of the company.
Read up on how many times Microsoft has split over the years. Where are they now?
A $2000 investment when Microsoft first opened public trading is worth in the millions today thanks to the splits.
i think u credit splits a bit more than you should. i don't think a 40/share price is more likely to hit 80/shr than an 80/shr is to go to 160/shr. the only place it really affects anything is the low-end. its all the same to volume owners, where i believe most of the stock is (though, thats just an assumption; for all i know small investors do make up most of aapl). share price * number of stocks = current value (shr price * total amt of stock = market cap). 1/2 the shr price and double the number of stocks, and you still have the same value (and same market cap); ie, nothing is gained or lost from the split. it really only affects people who are dealing in individual stocks, or looking for penny/shr gains. if appl is worth a certain market cap, then the share price and share volume will move to allow that market cap; and since share volume is controlled by aapl, investers will move the share price accordingly. small investers aren't going to hold apple away from a certain market cap by refusing to buy a few 100+ shares.
Could someone tell me (or point me in the direction of info) about buying shares? I'm in the UK, if it makes any difference? Can anyone do it?
I?m from Australia and bought in on the big crash in 2000 at $22. So it may seem at though I've made a big windfall. Unfortunately the Australian dollar was weak against the US dollar at the time and now is strong. So whilst i have made good gains it is by no means stella. At the time I bought in for short term gains which failed to materialise. So it is riskier than buying shares in your own country but this is one of those companies that we all know a little bit about
The last split did not do that well. The stock tanked 6 months after. The stock rose today and will rise more before the split. I'm not sure what to do with my 400 sh.
Then there is this info. Be sure to read the part about buying stocks after the split and then selling in 3 months.
What was it mom always said? Oh yeah, "Don't put all your eggs in one basket."
Yeah . . . my Mother-in-law has been telling me to sell my Apple stock and diversify since t was at 20$ . . . I bought at 15% . . . . everytime it hits a new barrier I smirck and rub it in . . .
I was going to sell at 85$ . . . . I bet that the baord probably understood that barrier and split in order to bring new peeps on and keep the old . . .
Ihvide has the faith . . . let's hope that the business model is as good as he/she makes it sound and is on a strong solid climb
That's interesting . . .but the way I see it, that only will allow for us keeneyed Mac-fans a chance to buy more at the resulting postsplit 3-month dip in stock price . . .
Actually, I have no money to invest . . . . but I'll just hold on to what I have.
Ye, I'd be grateful on this too. As a 20 year old, I feel it is about time I acquired some shares (geez I had shares when I was about 13, but I sold them). How easy is it to buy Apple shares from the UK (probably online) and do Apple shares pay a dividend? Should I even bother or is it not worth the hassle?
Difficult to advise someone on what/what not to do... However, I've been using Apple since two years now and been thinking 'bout buying shares since two years now... Finally bit the bullet. Why? Apple's marketshare is only 2 percent. With the new products and Tiger in the pipeline (not to mention new stores...) they might well be on their way to take a BIG byte out of Microsoft.
So, call your bank and tell them you want to buy. They'll tell you how to proceed. And just to make your life more diffucult: consider buying options: That way you'll get more leverage and - what's even more important- your loss potential is limited.
Comments
Originally posted by thuh Freak
on the other hand, hathaway is fucking retarded to not split.
I'm not sure I'd say that Warren Buffet is "fucking retarded" about anything. Lucky...maybe...but even that is a stretch.
They have their reasons for not splitting.
Also, the do have BRK.B which is a more accessible stock...has the same effect as a split I suspect.
Originally posted by lewd0006
(some analysts have it at $100 targets)
But that was pre-split. The equivalent target price post-split would be $50. Though it certainly can (and perhaps will) go higher than $50. I wouldn't get too excited about buying at $40 (split-adjusted) and it suddenly going to $100. (though my retirement account would be quite happy if it did)
Originally posted by atomic_angel
But that was pre-split. The equivalent target price post-split would be $50. Though it certainly can (and perhaps will) go higher than $50. I wouldn't get too excited about buying at $40 (split-adjusted) and it suddenly going to $100. (though my retirement account would be quite happy if it did)
Why not? it's still the same percentage gain. You're still making the same amount of money because you own double the shares.
Originally posted by lewd0006
Why not? it's still the same percentage gain. You're still making the same amount of money because you own double the shares.
You are correct that $40 to $50 is the same as $80 to $100. I was only clarifying that people should not expect $40 to $100.
Each shareholder of record at the close of business on February 18, 2005 will receive one additional share for every outstanding share held on the record date, and trading will begin on a split-adjusted basis on February 28, 2005.
Does this mean that there will be no trading for 10 days?
Bought stock on that day, at 11 bucks a share.
I couldn't be happier right now. Thanks Apple, and congratulations.
Now, if I was smart, I would sell 1/2 the stock and still have the same number of shares at a 4x profit. But, like a fool, I'll let it ride.
Someone's gotta support this Mac addiction. Who better than Apple themselves.
Originally posted by lewd0006
No, it just means if you purchase the stock after the 18th, you don't qualify for the split.
But in that case, you would be purchasing for $80, and then they would be worth $40 a couple of days later? No? Am I being really stupid and missing something because I have been working my brain too hard today or something?
Originally posted by G_Warren
But in that case, you would be purchasing for $80, and then they would be worth $40 a couple of days later? No? Am I being really stupid and missing something because I have been working my brain too hard today or something?
Pretty much. Basically a stock split works like this: you get double the shares at half the price and half the earnings. Basically, nothing changes whatsoever. It's still valued the same. Doubling the available shares from 900 million to 1.8 billion is how you get half the earnings per share. Therefore, if you have a certain amount of money invested in say, 100 shares of AAPL.. it becomes 200 shares at half the price, and you still own the same amount of money in the stock. That $100 price target does indeed become $50, but a $10 gain from 40 to $50 is still the same % gain as a $20 gain from 80 to $100. That's as simple as I know how to explain it.
Keep in mind that a company's stock is a way for the company to essentially make a ton of money. People are INVESTING in them.. someone posted earlier that if the stock rises back to $80, Apple has essentially doubled the amount of money invested in the company. So to reiterate, right now Apple has 900 million shares are $80. Once the stock splits, they'll have 1.8 billion shares at around $40. That's no change in value. Now, once the stock climbs again, they're automatically making money. The appeal of the split is to attract more investors at a lower entry price. For people that already own AAPL or want to get in on the split, the time to buy is before Feb. 18th. Just keep in mind that the stock isn't projected to hit $100 after the split.. it's $50, so it will take a while for the stock to gain value. This isn't instant money for AAPL.. but for a company on the rise, it's a great way to spur investment.
Just an interesting fact I heard on CNBC.. this is only the 3rd time in AAPL's 25-year public trading history that they've split the stock.
Originally posted by lewd0006
Pretty much. Basically a stock split works like this: you get double the shares at half the price and half the earnings. Basically, nothing changes whatsoever. It's still valued the same. Doubling the available shares from 900 million to 1.8 billion is how you get half the earnings per share. Therefore, if you have a certain amount of money invested in say, 100 shares of AAPL.. it becomes 200 shares at half the price, and you still own the same amount of money in the stock. That $100 price target does indeed become $50, but a $10 gain from 40 to $50 is still the same % gain as a $20 gain from 80 to $100. That's as simple as I know how to explain it.
Just an interesting fact I heard on CNBC.. this is only the 3rd time in AAPL's 25-year public trading history that they've split the stock.
I get all that, but from what you said above, you would have to be absolutely stupid to buy between the 18th and 28th. You would be buying say 10 at $80, but then have 10 at $40 each since the doubling only applies if you bought before the 18th. This right?
Personally, I think buying at this price now is a little high anyhow, but a stock split is a long-term thing. The stock is up to day because people are buying a lot of it. They want to double their shares for the long-haul.
But the stock split is essentially an illusion of the stock being cheaper, to spur investment from buyers that will miss out on the stock split, ie a month or two down the road. You're only stupid if you haven't already bought the stock
Originally posted by G_Warren
I get all that, but from what you said above, you would have to be absolutely stupid to buy between the 18th and 28th. You would be buying say 10 at $80, but then have 10 at $40 each since the doubling only applies if you bought before the 18th. This right?
If you trade between the 18th and the 28th, you'll get the split shares when they split. You pay the $80, but the seller agrees (by OKing the sale) to transfer you the split shares once they come out on the 28th. This is all done via the markets and computers and all, and done all the time (stocks split regularly) so its not like someone's going to screw you over or anything.
Keep in mind if you use Quicken (prior to 2005, I believe) to track your stocks, besides being one large dip in the graphs, Quicken will completely and utterly screw up your cost basis, ROI, %gain, and pretty much anything else. And it will continue to do this even if you sell all your stock and buy more later (I had some that split when it was $120 - the good ol' days - or so, and sold that long ago. I recently bought some at 38 or so, and quicken had different values for ROI and %gain [unless you get dividends or such, these two numbers should be exactly the same]. Its apparently a well known problem, one of many that Intuit acknowledges but never fixes. Goes along with their net worth graphs, which seems to add my investment accounts twice and shows a higher number than the net worth report - man how I wish there was some better option out there than Quicken).
Originally posted by mdriftmeyer
A split is excellent to move a stock and increase stock investor participation.
Say you have 2000 shares at $80/share.
With the split you have 4000 shares at $40/share.
Which is more likely to happen? Investment to raise the stock above $80/share or investment to raise the stock above the split adjusted $40/share?
When that stock is back up at $80/share and you have 4000 shares you have effectively doubled your value. To get the equivalent pre-split the stock would have to trade at $160/share.
That won't happen and Apple knows it. Stagnation would set in and slow down the momentum of the company.
Read up on how many times Microsoft has split over the years. Where are they now?
A $2000 investment when Microsoft first opened public trading is worth in the millions today thanks to the splits.
i think u credit splits a bit more than you should. i don't think a 40/share price is more likely to hit 80/shr than an 80/shr is to go to 160/shr. the only place it really affects anything is the low-end. its all the same to volume owners, where i believe most of the stock is (though, thats just an assumption; for all i know small investors do make up most of aapl). share price * number of stocks = current value (shr price * total amt of stock = market cap). 1/2 the shr price and double the number of stocks, and you still have the same value (and same market cap); ie, nothing is gained or lost from the split. it really only affects people who are dealing in individual stocks, or looking for penny/shr gains. if appl is worth a certain market cap, then the share price and share volume will move to allow that market cap; and since share volume is controlled by aapl, investers will move the share price accordingly. small investers aren't going to hold apple away from a certain market cap by refusing to buy a few 100+ shares.
Originally posted by danielctull
Could someone tell me (or point me in the direction of info) about buying shares? I'm in the UK, if it makes any difference? Can anyone do it?
I?m from Australia and bought in on the big crash in 2000 at $22. So it may seem at though I've made a big windfall. Unfortunately the Australian dollar was weak against the US dollar at the time and now is strong. So whilst i have made good gains it is by no means stella. At the time I bought in for short term gains which failed to materialise. So it is riskier than buying shares in your own country but this is one of those companies that we all know a little bit about
Then there is this info. Be sure to read the part about buying stocks after the split and then selling in 3 months.
http://moneycentral.msn.com/investor....asp?TermID=67
Originally posted by lhvide
What was it mom always said? Oh yeah, "Don't put all your eggs in one basket."
Yeah . . . my Mother-in-law has been telling me to sell my Apple stock and diversify since t was at 20$ . . . I bought at 15% . . . . everytime it hits a new barrier I smirck and rub it in . . .
I was going to sell at 85$ . . . . I bet that the baord probably understood that barrier and split in order to bring new peeps on and keep the old . . .
Ihvide has the faith . . . let's hope that the business model is as good as he/she makes it sound and is on a strong solid climb
Originally posted by WelshDog
Then there is this info. Be sure to read the part about buying stocks after the split and then selling in 3 months.
http://moneycentral.msn.com/investor....asp?TermID=67
That's interesting . . .but the way I see it, that only will allow for us keeneyed Mac-fans a chance to buy more at the resulting postsplit 3-month dip in stock price . . .
Actually, I have no money to invest . . . . but I'll just hold on to what I have.
Originally posted by G_Warren
Ye, I'd be grateful on this too. As a 20 year old, I feel it is about time I acquired some shares (geez I had shares when I was about 13, but I sold them). How easy is it to buy Apple shares from the UK (probably online) and do Apple shares pay a dividend? Should I even bother or is it not worth the hassle?
Difficult to advise someone on what/what not to do... However, I've been using Apple since two years now and been thinking 'bout buying shares since two years now... Finally bit the bullet. Why? Apple's marketshare is only 2 percent. With the new products and Tiger in the pipeline (not to mention new stores...) they might well be on their way to take a BIG byte out of Microsoft.
So, call your bank and tell them you want to buy. They'll tell you how to proceed. And just to make your life more diffucult: consider buying options: That way you'll get more leverage and - what's even more important- your loss potential is limited.
It'll be fun!!!: