Rumors of a 10:1 Apple stock split.

If true, it'll be announced today at its shareholder meeting.

http://blogs.wsj.com/marketbeat/2013...od=MarketsMain

Interesting as to why they would split now...Google hit $800 just this last week.

Please explain relavence of $GOOG price with respect to $AAPL split.....

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Originally Posted by urquattro83

Please explain relavence of $GOOG price with respect to $AAPL split...

One of the various reasons for a stock split is if the company believes the price per share creates a barrier for retail investors to buy shares. If the share price is too high, it can dissuade investors. Citing GOOG is presumably an example of a company with no complaints of their share price being too high.

Originally Posted by gpburdell

One of the various reasons for a stock split is if the company believes the price per share creates a barrier for retail investors to buy shares. If the share price is too high, it can dissuade investors. Citing GOOG is presumably an example of a company with no complaints of their share price being too high.

True.

"I have this 10 lbs sack of onions for $10. But I can give you a good discount if you buy half a sack for only $5."

Originally Posted by gpburdell

One of the various reasons for a stock split is if the company believes the price per share creates a barrier for retail investors to buy shares. If the share price is too high, it can dissuade investors. Citing GOOG is presumably an example of a company with no complaints of their share price being too high.

exactly. trying to draw in more wet behind the ear retail investors for the 2nd round of wash and rinse by apple trying to make a stock come-back and save their falling death spiral value and the financial community. f#cking thieves.

Originally Posted by MatWiz

True.

"I have this 10 lbs sack of onions for $10. But I can give you a good discount if you buy half a sack for only $5."

Probably why the Japanese serve small portions like Sushi lol..They have a lot more room for price increases from there.

Originally Posted by gpburdell

One of the various reasons for a stock split is if the company believes the price per share creates a barrier for retail investors to buy shares. If the share price is too high, it can dissuade investors. Citing GOOG is presumably an example of a company with no complaints of their share price being too high.

I forgot. I am invest a dollar value, not particularly concerned about quantity of shares, thanks.

Originally Posted by MatWiz

True.

"I have this 10 lbs sack of onions for $10. But I can give you a good discount if you buy half a sack for only $5."

Originally Posted by stylinexpat

Probably why the Japanese serve small portions like Sushi lol..They have a lot more room for price increases from there.

As the Japanese say, "Yom asal, yom basal".

lol..

The split will be good for me. That's all.

Originally Posted by stylinexpat

lol..

Hehe... I thought it will make you laugh.

aapl is now below $400. did a split of some sort happen?

Originally Posted by HW

aapl is now below $400. did a split of some sort happen?

iPhone sales have taken a beating here in Asia. Many are buying Samsung Smartphones lol..
This is what I gather here in Asia, iPad sales are doing well while iPhones and MacBooks are doing poorly. MacBooks are especially doing poorly. Question is if iPad sales will cover losses from MacBooks and iPhone sales....

Originally Posted by HW

exactly. trying to draw in more wet behind the ear retail investors for the 2nd round of wash and rinse by apple trying to make a stock come-back and save their falling death spiral value and the financial community. f#cking thieves.

Death Spiral? In Q1 the company sold 47 million iPhones( up from 37 million the year ago quarter) and made a record quarterly net profit of 13 billion dollars.

it's hard to fall into a "death spiral" when you make 13 billion dollars....

Traditionally the stock split when it got around $100 and it was only on the recent run-up that it didn't split. The problem with a high stock price is that it basically shuts out small investors and with fewer potential "buyers" the stock is subject to larger swings and I would say a slightly depressed value.

Adjusting MatWiz's example "I have this 100,000 lbs sack of onions for $100, 000. But I get a good premium if sell 1/100,000 a sack for $2." because not many people will pony up $100,000 for a giant bag of onions, but a lot of people will buy a pound of onions. So you increase demand by making the onions affordable to a greater market

**YAWN**

Anyways...

I love laughing at chartists and "technical analysts". It's about as scientific as Tarot cards.

Apple is tanking because the PC market is dead, their innovative genius is dead and other companies have wrested their "cool factor", producing better products like the S3. How much revenue can Apple generate in patent lawsuits? That seems to be their favorite ploy these days.

AAPL's earning release date is next Tuesday. Should be interesting.

Originally Posted by Z4luvr

I love laughing at chartists and "technical analysts". It's about as scientific as Tarot cards.

Apple is tanking because the PC market is dead, their innovative genius is dead and other companies have wrested their "cool factor", producing better products like the S3. How much revenue can Apple generate in patent lawsuits? That seems to be their favorite ploy these days.

Very true. One thing to keep in mind though is that as sales have grown their iTunes accounts revenue income and profits must have grown as well. Question is by how much though...

I am interested in AAPL at 350 a share and with the recent downfall in share price, I can actually write some puts for 350 at a decent price and get the chance to own at that...if not, at least I pocket a decent premium.

Verizon just posted their first quarter 2013 financial results, and during the conference call their chief financial officer announced that 4 million iPhones had been sold in the quarter, 2 million of which were iPhone 5. That's a pretty significant number, considering Verizon activated 7.2 million devices the whole quarter, making iPhone accountable for over 55%. CEO Lowell McAdam commented on Verizon's progress this quarter:

No doom and gloom over on Verizon

Originally Posted by GeneArch

No doom and gloom over on Verizon

sure. good for verizon but aapl needs to continue high growth to maintain it's stock price. probably having to sell +60 million iphones.

Originally Posted by HW

sure. good for verizon but aapl needs to continue high growth to maintain it's stock price. probably having to sell +60 million iphones.

Stock price is predicated on growth AND earnings (and yield). The P/E (price/earnings) ratio tends to be higher for high growth companies because buyers anticipate higher earnings in the future (hence justifying an "inflated" price)

http://ycharts.com/companies/AAPL/pe_ratio

About Price to Earnings Ratio
The price to earnings ratio (PE Ratio) is the measure of the share price relative to the annual net income earned by the firm per share. PE ratio shows current investor demand for a company share. A high PE ratio generally indicates increased demand because investors anticipate earnings growth in the future. The PE ratio has units of years, which can be interpreted as the number of years of earnings to pay back purchase price.

PE ratio is often referred to as the "multiple" because it demonstrates how much an investor is willing to pay for one dollar of earnings. PE Ratios are sometimes calculated using estimations of next year's earnings per share in the denominator. When this happens, it is usually noted.

So Google has a PE ratio of 23 and it is certainly considered a high growth company validating the higher PE

Dell has a PE ratio of 10, it has not experienced growth in earnings (in fact 1 year EPS growth is negative)

Microsoft has a PE ratio of 15 and earnings and little growth (http://www.fool.com/quote/nasdaq/mic...s-growth-rates)

Apple has a PE of 8 with 44% revenue growth and 61% EPS growth from 1 year ago.

http://www.fool.com/quote/NASDAQ/app...xwebtxt0000006

Apple's stock price is disconnected from it's "growth". If people were anticipating Apple's growth slowed or even became flat, like microsoft/dell then it would be trading at a PE of 10 to 15, about 50% higher than now.

Either there is some serious price manipulation going on OR people think Apple will have negative growth, ie they will sell a lot less product than they are selling now.

Apple does not need to maintain high growth to "maintain" it's stock price, it is trading at a price reflective of a company with little or no growth.

Buy AAPL @ $350 when negative sentiment will undoubtedly peak. If everyone is waiting for $340 it will never even touch that.

http://www.phonearena.com/news/Repor...ew-CEO_id42184