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