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Angels&Airwaves

macrumors member
Original poster
Sep 24, 2007
62
0
hey guys i know this might be a dumb question but i was just wondering if there will be a stock split in the future. im a young college boy and i own a small 7 shares (pathetic, i know)...i have my money in some other places as of now and i would like to throw out some more for some apple stock when the time comes. if i could get some good speculation i would be very thankful. please excuse my poor grammar and writing. thanks everyone!
 

ivi7

macrumors 6502a
Sep 17, 2007
796
0
I remember reading somewhere that after Apple reaches a resistance at $190 there will be a split. But don't count on me for that one. I myself am waiting for a split so I could buy some stocks.
 

Angels&Airwaves

macrumors member
Original poster
Sep 24, 2007
62
0
I remember reading somewhere that after Apple reaches a resistance at $190 there will be a split. But don't count on me for that one. I myself am waiting for a split so I could buy some stocks.

that would be excellent. would be just in time for me to get that money out of that CD. hope thats true...
 

Sun Baked

macrumors G5
May 19, 2002
14,941
162
Right now with the price high, it looks like the company is doing well compared to the booming internet stocks.

A split would make it look like it is in the toilet.
 

zwida

macrumors 6502a
Jan 5, 2001
596
26
NYC + Madison, WI
Unless there has been a philosophical change at Apple (or its investment banking advisors), it seems likely that there will be an Apple stock split announced in the near term. Frankly, I wouldn't be stunned if they announce it on their earnings call this Monday (after the market close). 2 for 1 makes the most sense to me, although there are folks out there guessing that it will a 3 for 1 split.
 

WildCowboy

Administrator/Editor
Staff member
Jan 20, 2005
18,490
2,991
Honestly, there's no way to know unless you're sitting in the board room. Lots of people thought they'd split around $100 like they did last time. Clearly we're still waiting for that split.

It certainly wouldn't surprise me if they split soon, but I would have said the same thing had you asked me at any point in the last six months.

Of course, as must always be mentioned, stock splits are just about meaningless.
 

mrat93

macrumors 68020
Dec 30, 2006
2,334
3,358
If I had to guess, I'd say within 3-4 months. I bought 60 shares at $89 (December, I think it was?) Anyway, earnings come out on Monday next week and that quarter has the back-to-school season, and the next quarter has the holiday season, so I think when this quarter's earnings are released in January would be a good time to split. If not, I'm selling then. But... then again... what do I know? I'm just a kid!
 

IJ Reilly

macrumors P6
Jul 16, 2002
17,909
1,496
Palookaville
If I had to guess, I'd say within 3-4 months. I bought 60 shares at $89 (December, I think it was?) Anyway, earnings come out on Monday next week and that quarter has the back-to-school season, and the next quarter has the holiday season, so I think when this quarter's earnings are released in January would be a good time to split. If not, I'm selling then. But... then again... what do I know? I'm just a kid!

Don't base a decision to sell or not sell on a stock split. If say a 2:1 split is declared, you get twice as many shares at half the price. The value of your investment stays exactly the same.

Personally, I wouldn't be surprised if the board just let it ride. They've got that Google influence on the board now.
 

CalBoy

macrumors 604
May 21, 2007
7,849
37
Of course, as must always be mentioned, stock splits are just about meaningless.

Don't splits help low-net-worth investors enter the market? If the stock climbs ever higher, investors at the bottom end will eventually be unable to participate.
 

WildCowboy

Administrator/Editor
Staff member
Jan 20, 2005
18,490
2,991
Don't splits help low-net-worth investors enter the market? If the stock climbs ever higher, investors at the bottom end will eventually be unable to participate.

A split every once in a while can certainly help with that. But the small investors aren't the ones moving the stock price...they're mostly just along for the ride on the large individual and institutional investors who don't care what the absolute price is.
 

CalBoy

macrumors 604
May 21, 2007
7,849
37
A split every once in a while can certainly help with that. But the small investors aren't the ones moving the stock price...they're mostly just along for the ride on the large individual and institutional investors who don't care what the absolute price is.

That makes sense, but I kind of feel sorry for the little guy (since that's what most of us are in the stock market):eek:
 

WildCowboy

Administrator/Editor
Staff member
Jan 20, 2005
18,490
2,991
That makes sense, but I kind of feel sorry for the little guy (since that's what most of us are in the stock market):eek:

True...some people like to just buy a share or two to be able say they own a piece of the company, and that's fine for nostalgia purposes, and it's nice to support those people. (But commissions to buy and sell that share or two put them in a fairly deep hole if they're thinking about it for investment purposes.)

The Wikipedia article on stock splits does a pretty good job of summing up some of the effects of stock splits (though it would be nice if it had some references). Basically, the psychological effects and liquidity effects it cites are real, but have an extremely minimal impact in modern markets.
 

CalBoy

macrumors 604
May 21, 2007
7,849
37
True...some people like to just buy a share or two to be able say they own a piece of the company, and that's fine for nostalgia purposes, and it's nice to support those people. (But commissions to buy and sell that share or two put them in a fairly deep hole if they're thinking about it for investment purposes.)

The Wikipedia article on stock splits does a pretty good job of summing up some of the effects of stock splits (though it would be nice if it had some references). Basically, the psychological effects and liquidity effects it cites are real, but have an extremely minimal impact in modern markets.

I suppose that for 401k investors and the like, having the stability of a non-splitting stock is far more important than the elimination of a few bottom end investors. Still, a part of me resists (for no logical reason whatsoever!:p).
 

imac/cheese

macrumors 6502a
Jun 7, 2007
555
2
That makes sense, but I kind of feel sorry for the little guy (since that's what most of us are in the stock market):eek:

From what I understand, A 2:1 stock split will only keep out someone only wanting 1 share. If they would still buy 2 shares they could have gotten 1 before the split.
 

Phobophobia

macrumors 6502
Dec 1, 2003
479
1
Apple isn't going to split. They're going by the Google, and berkshire hathaway philosophy now. (And they've stated this).
 

CalBoy

macrumors 604
May 21, 2007
7,849
37
From what I understand, A 2:1 stock split will only keep out someone only wanting 1 share. If they would still buy 2 shares they could have gotten 1 before the split.

For now, but as Phobophobia points out:

Apple isn't going to split. They're going by the Google, and berkshire hathaway philosophy now. (And they've stated this).

Berkshire Hathaway has a share price that is well outside the norm (I think it's more than $100k).
 

rfrankl

macrumors 6502a
Apr 15, 2006
506
12
I don't think Apple is going to split anymore. They used to split every time they held $80 for a while, but I think like the above posted, they are going to use the Google model. Eric Schmidt is on the board now as well.

Look at all the big tech stocks that split so many times over the years and have billions of shares outstanding. They don't move anymore. Apple has over 800 million shares outstanding...they don't need anymore. Just let the price keep going higher. The higher price keeps alot of the daytraders away.
 

CalBoy

macrumors 604
May 21, 2007
7,849
37
BRK.A lost right at $995 per share today. It's a steal at an even $129,000.00 a share at closing.

Well that illustrates my point perfectly. At some point, it becomes impossible for the average investor to buy that stock. The only ones who can are other corporations and wealthy individuals. It excludes a great bulk of the population.
 

WildCowboy

Administrator/Editor
Staff member
Jan 20, 2005
18,490
2,991
Well that illustrates my point perfectly. At some point, it becomes impossible for the average investor to buy that stock. The only ones who can are other corporations and wealthy individuals. It excludes a great bulk of the population.

At that price, it limits investment to what are presumably the savviest investors and managers, resulting in loyal investors and stable share prices.

Fortunately for the little guy, BRK now offers Class B shares that allow you to get your foot in the door for a measly $4300. ;)
 

erandall38

macrumors 6502
Jun 24, 2007
463
1
Apples board of directors announced at the stock holders meeting that they have NO PLANS to split. And that they like the philosophy of Warren buffet and google and how to have continued growth as a stock like they did.... which they will.
This does not mean AAPL plans to be 126,400 like brk.a , but they do plan to continuing growing and growing with out splits.

Splits are all mind games... but man do people want to argue about this.

But when stocks split it brings in volatality to the stock and sometimes immature investors. I have been investing in Apple since the 70's and the farther and farther we get up the less annoying, non-knowledgeable investors I notice on stock forums.
 
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