Apple declares 2-For-1 stock split
Apple says board approves stock split.
Apple Computer on Friday announced that its board of directors approved a two-for-one split of the company's common stock and a proportional increase in the number of Apple common shares authorized, to 1.8 billion from 900 million.
As of February 18, all shareholders of record will receive one additional share for every outstanding share held. Trading will begin on a split-adjusted basis February 28.
Apple shares were up $1.15, or 1.5 percent, at $79.51 in recent premarket trading.
Apple Computer on Friday announced that its board of directors approved a two-for-one split of the company's common stock and a proportional increase in the number of Apple common shares authorized, to 1.8 billion from 900 million.
As of February 18, all shareholders of record will receive one additional share for every outstanding share held. Trading will begin on a split-adjusted basis February 28.
Apple shares were up $1.15, or 1.5 percent, at $79.51 in recent premarket trading.
Comments
Now I have 18 shares... or will have anyway.
Originally posted by Guartho
WOOHOO![/homer]
Now I have 18 shares... or will have anyway.
18 shares, worth half the price. i've always been under the impression that a split is never good for the price of a stock. companies like Berkshire Hathaway have never split and are now worth over $90,000 a share (you read that right).
while this may lure more casual investors, i don't know if it gives apple the image they want or need. (hey, but then again, what do i know about running a $5billion company?)
FWIW, during the boom, our company announced a stock split and before it happened, the stock plummeted. I am no financial analyst, but I think Apple's stock is due for a correction which may negate this split too.
Apple is the only big name tech stock out there with a bright future these days.....
Originally posted by hohlecow
18 shares, worth half the price.
It's breaking the psychological barrier of single-digit ownership. It's like the 1Ghz barrier that loomed over us Mac-heads for so long way back when.
edit: Oh, and welcome to AI. I am honored to be the replyee of your first post.
Originally posted by ipodandimac
if i hadn't sold my stock a few months ago I could buy another pimped out G5, or buy a car.
Proveing once again that Apple Mid-tower systems are horribley overpriced.
Originally posted by hohlecow
18 shares, worth half the price. i've always been under the impression that a split is never good for the price of a stock. companies like Berkshire Hathaway have never split and are now worth over $90,000 a share (you read that right).
while this may lure more casual investors, i don't know if it gives apple the image they want or need. (hey, but then again, what do i know about running a $5billion company?)
i don't think splits matter, or should matter, that much to a stock. all it really changes is the price on a small amounts of stock. if ur buying in volume, its not going to affect you. from my understanding, smaller investers aren't really that big of a piece of the pie. on the other hand, hathaway is fucking retarded to not split. $90k is a lot of money to almost everyone, except the exceedingly rich. The price completely cuts out an overwhelming amount of people from having any hold on the company. i suppose thats what they are going for, but it seems contradictory to the idea of stock.
Originally posted by a_greer
Proveing once again that Apple Mid-tower systems are horribley overpriced.
This makes no sense a_greer. Pricing is a subjective term..why don't we keep this thread on topic.
Stock splits IMO are good. It gives stock holders twice the amount of shares which has to feel good particularly if you purchased the shares at a price that's still lower than the post split price. Sure there are pitfalls in everything but this is positive in my book.
sometimes companies split a stock because its been holding steady at or near say $100/share for an extended period... perception is that well, the stock isn't going up because it has hit that "imaginary" ceiling.... so they split the stock and then it languishes at a low level for years. But then it would have languished at a high price for years if the split hadn't occured. The reason here is usually fundamental to the business itself (lack of growth), and not the stock price.
Apple's split came at a typically unexpected time, right in the middle of a rally, at a time when Apple (as a product) is just hitting the radar of America's entire consumer base. Most of these people have not yet taken a look at Apple stock, but probably will in the near future. Why not split right before this tidal wave of interest in the company's products and stock occurs?
Apple's strategy these days is brilliant. Bring people in the door with the iPod (all varieties). Show them how easy & inexpensive it is to buy a Mac (mac mini). Then when they realize how great Apple's products truly are, they take a look at the stock and see a sub $50/share price, seemingly a perfect time to invest. The effect multiplies itself and we see share prices rise. But this is no vaporware artifically inflate price rise. The stock rise is also backed up by solid fundamental growth in market share, increasing revenues, etc, etc.....
Apple will be back at $80/share by this time next year without a doubt.....
Buy now.
Originally posted by thuh Freak
$90k is a lot of money to almost everyone, except the exceedingly rich. The price completely cuts out an overwhelming amount of people from having any hold on the company. i suppose thats what they are going for, but it seems contradictory to the idea of stock.
It's exactly what they are going for. Keep the idiots from screwing around wih the company. It is obviously very successful. Warren Buffett is the richest man alive.
Gates, FYI is demon spawn.
Originally posted by hohlecow
18 shares, worth half the price. i've always been under the impression that a split is never good for the price of a stock. companies like Berkshire Hathaway have never split and are now worth over $90,000 a share (you read that right).
while this may lure more casual investors, i don't know if it gives apple the image they want or need. (hey, but then again, what do i know about running a $5billion company?)
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.
Originally posted by lhvide
It's exactly what they are going for. Keep the idiots from screwing around wih the company. It is obviously very successful. Warren Buffett is the richest man alive.
Gates, FYI is demon spawn.
No Warren Buffet is not the richest man alive.
The Net Worth of Bill Gates is much greater than that of Warren Buffet.
http://www.forbes.com/billionaires/
The man still has more money than Buffet out of his one company than Buffet has in nearly a half dozen.
Originally posted by mdriftmeyer
No Warren Buffet is not the richest man alive.
The Net Worth of Bill Gates is much greater than that of Warren Buffet.
http://www.forbes.com/billionaires/
The man still has more money than Buffet out of his one company than Buffet has in nearly a half dozen.
I qualified my statement by noting that Gates is demon spawn, and thus not technically, of mankind.
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?
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?
Originally posted by hohlecow
18 shares, worth half the price. i've always been under the impression that a split is never good for the price of a stock. companies like Berkshire Hathaway have never split and are now worth over $90,000 a share (you read that right).
while this may lure more casual investors, i don't know if it gives apple the image they want or need. (hey, but then again, what do i know about running a $5billion company?)
...
Yeah, the likelyhood that 1 company fails is x
The likelyhood that 6 companies fail is x/6
I would always prefer the second option.
What was it mom always said? Oh yeah, "Don't put all your eggs in one basket."