Osiris_x11
Gold Member, Moderator: Marketplace
So if an "investor" purchased it Friday, they'd be eligible for this split?
(the announcement of the split was made months ago)
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Apple stock,buy or no buy?
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(the announcement of the split was made months ago)
If an investor purchased Friday, they'd have 7x more shares today each worth about 1/7th of what he paid Friday.
Osiris_x11
Gold Member, Moderator: Marketplace
Think these sub <$100 shares will ever get back to Apple's hey-day of $450-$650... 
If-so, kudos to those who were part of the split (along with presumably getting into Apple when the shares weren't where they've been past 5+ years)...
If-so, kudos to those who were part of the split (along with presumably getting into Apple when the shares weren't where they've been past 5+ years)...
It won't. The split essentially just changes the price to get in the door.
To return to 650, in reverse, would be saying Apple is worth 7x what it was last week (650 x 7 = 4550 per share had they not split). Not gonna happen.
The peak value of Apple stock at 705 has been adjusted to 100.72 to reflect the split.
To return to 650, in reverse, would be saying Apple is worth 7x what it was last week (650 x 7 = 4550 per share had they not split). Not gonna happen.
The peak value of Apple stock at 705 has been adjusted to 100.72 to reflect the split.
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You had to be an owner as of June 2 to be in on the split.
What happens to people who bought stock on June 3,4,5? They pay the pre-split price and are screwed? Or did they stop trading after June 2?
I've never heard of a split working any other way, but was wondering about computron's comment above.
My wife who is absolutely clueless about trading, even more-so than I am, said 'buy me some'. I'm guessing there will be a lot of that mentality with the lower cost of entry.
Sold my APPL I bought at $400 (see previous posts) for ~$650 pre-split. It will go higher and lower in the future but that was my target valuation wise and it was met. I'll go long again if/when it gets to the low $70's post split price.
For those looking to get long post split, you are doing it wrong. This is similar mentality to when the stock first announced it's dividend at $600 (lots of retail investors jumped in) and shot up to $700 then crashed to $385 (at which I purchased at $400 on the way up). You can still make the argument it's a good price based on earnings/valuation/product announcements/et cetera but why didn't you buy it when it was materially cheaper just a few weeks ago? Becareful jumping on the band wagon.
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To acheive that the market cap of AAPL must be approximately $3.3 trillion dollars (22% of U.S. GDP). The law of large numbers is here.
For those looking to get long post split, you are doing it wrong. This is similar mentality to when the stock first announced it's dividend at $600 (lots of retail investors jumped in) and shot up to $700 then crashed to $385 (at which I purchased at $400 on the way up). You can still make the argument it's a good price based on earnings/valuation/product announcements/et cetera but why didn't you buy it when it was materially cheaper just a few weeks ago? Becareful jumping on the band wagon.
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Think these sub <$100 shares will ever get back to Apple's hey-day of $450-$650...
If-so, kudos to those who were part of the split (along with presumably getting into Apple when the shares weren't where they've been past 5+ years)...
To acheive that the market cap of AAPL must be approximately $3.3 trillion dollars (22% of U.S. GDP). The law of large numbers is here.
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No, you are not screwed.
You would still get the extra shares after the split date. I guess I should clarify my earlier June 2 date comment. June 2 is the date of record for the split meaning as far as APPLE is concerned, you would have to be on their books as a stockholder at that time for them to give you the additional 6 shares on split day. When you buy shares AFTER the date of record, but BEFORE the split date, what happens is you get the 1 share you bought at the pre-split price, and then after the split date, when the selling BROKER gets the additional 6 shares, they are accountable to forward those 6 shares to you. As far as Apple is concerned, they are giving the additional shares to the previous owner... your broker and the seller broker handles transferring those additional shares to you.So long story short, you get all the extra shares as long as you buy before the actual split date. Hope this clears things up!
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Sorry for a newb question but who determines if a share should split and why does companies do it? I don't understand this portion.
The company's board of directors decides. Companies do it to make shares seem more affordable to small investors even though the underlying value of the company has not changed. When a split happens, the value of each stock is reduced by the same level... thus no net change in value has occurred.
So for example, in Apple's case, before split, you would need around $650 to buy 1 share of Apple stock. If you had less, you are out of luck because you cannot directly buy fractional shares. Now that it has split 7 for one, the value of each share is 1/7 what it was, so you can now buy 7 shares for the same $650. If you have less than $650, you can still buy stock down to 1 share at the new price.
Plus, psychologically speaking, buying a $90 something stock is not as intimidating as buying a $650 stock.
This stock is a great long term savings account the way I look at it. If I turn a profit when I eventually sell the stock it will be a bonus as the dividend pay outs have far exceeded the return I would have received from any checking or savings account. Keep those dividends coming! I expect the stock to exceed $100 per share some time in late Q3, early Q4 this year.
Also, Dow has a history of not including stocks with high share prices (200+). Now that Apple is below 100 it appears a likely candidate to be added.
another newbie question? Why do you expect the stock will exceed $100 per share in late third or early fourth quarter?
I would think when the iPhone6 is released stock prices will go up?
another newbie question? Why do you expect the stock will exceed $100 per share in late third or early fourth quarter?
Because Apple tends to release products in September and October, and there has been a historic spike in their share price after the events are announced (but before they are actually held).
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very simply the stock market is like any other open market, with stock( shares of a company/reit/etf/ect) traded as the commodity being bought and sold....so for you to buy a stock there has to be someone wiling to sell it..it is that tug of war that provides the share price each second...aided by computers to keep all the mayhem manageable.The price is increased when demand outstrips supply as it should for most things in life.That is the most simplistic way to see it.Then you have the many different ways to play with options/puts /calls/buying on borrowed money (margins) ect.
I don't know how much this information is relevant to you guys, AAPL stock holders but I'm in the cell phone business and I can see Apple is loosing to Android. They sold a lot of iPhone 6s but mainly because of the great trade in program, the 6 isn't any different from a 5S except for it's size. Most people still like Apple computers.
my .02
my .02
Paul, I agree.... I believed the 6's mad buy-in was due to a perfect storm of the trade-in program but also because enough time had passed for owners to feel OK to buy-up/trade-up from their 4/4s/5/5s's that were purchased just a few years ago but which were frustratingly crippled from ios7 & ios8 and with no option from Apple to "upgrade" back to a prior ios that worked great on their phone. LINK LINK
As long as the phone doesn't break due to its fragile fashion-first design or start to run frustratingly slow again, I wonder if the current ultra-performing phones could be kept for more than 4-5 years, just like computers finally became "mature" enough to remain useful for more than 3 years.
Even though a lot of people smarter than me are making money off AAPL, I just don't see the same company & investment potential that I did from 2005 up to Steve Jobs' passing and the ascension of Tim & Jony. It's clearly not Tim & Jony's fault that there aren't as many market-breaking opportunities now vs. then (ipod, iphone, & ipad were clearly Apple innovations), nor is it their fault that they're working in the "marriage" phase of things now as compared to the earlier "dating & honeymoon" phase where the Apple under Steve Jobs was like the girl next door who was relatively undiscovered and on the sidelines seemingly forever until the timing was right and she hit puberty and the world fell in lust & love hard, both of which created wildly accelerating growth (I think Apple had something like 5% of the computer market then too, ready for the pickings). But I no longer see the explosive potential with their current focus on things like "same but bigger," "change for the sake of change" where appearance & style trumps usability (complete opposite of how it used to be and how it should be IMHO - check out app store reviews for Yosemite and online reviews for iTunes12), and new devices limited to an iWatch that I just can't see any use for myself personally even if one was given to me.
But it is Tim & Jony's fault that they miss "market maker" opps with decisions like the ipad air 2: instead of bringing it in with an astounding 12-20 hours battery life beyond the standard ~10 hours, they focus on thinness with carryover battery life. I venture to say 50%+ of consumers would be ok "suffering with" an ipad that was 1-2mm thicker but having an astounding battery...frustratingly kind of like Porsche holding back Cayman S performance so as not to bastardize 911 sales... And as far as previously being the king of industrial design - try accidentally laying your ipad air 2 screen-down on a smooth table and then try picking it up...I had to find a piece of paper to slide under it rather than slide it to the edge of the table, just to pick it up because it was too thin with no way to grip it from the side if your fingernails were too short!
I'm not up to speed on Apple's foreign market penetration, where they'd hope to sustain growth thru volume, but there are only a certain number of markets you can exploit before you run out of that opportunity.
I sold all my shares before the split, and before the pre-split price even peaked. I know I lost potential $ but I just don't believe in their products & design strategies any more and don't see the growth being able to support the valuation. Instead of being the unquestionably best option, they're now just "still a better option than Windows and Android," and that's a really big deal and shift from how I felt before where Apple could pretty much do no wrong for the longest time. Someone smarter than me, feel free to contradict, add, agree, disagree with my rants, ha ha, part of which is me childishsly venting personal frustration, and part of which is my trying to impartially understand AAPL's potential to keep appreciating or not. I do tend to get passionately opinionated when something that used to be great suddenly becomes ungreat in my estimation, and without a good reason. Also curious to see if any others are in agreement or are completely indifferent over Apple's current output with Jony & Tim, and how it relates to AAPL's potential to keep growing.
my .52 cents lol
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I thought of the same about apple when they were sub 80 dollars, that the stock might go down because of Android. Mind you, I was an Android user (HTC HD2) then switch to Iphone 4s because Iphone had better battery life (ironic). The stock kept climbing and Iphone 5, 5s, and 6 all did very well.
I think Apple is not the innovator anymore, which Samsung is more like coming out with new gadgets. Apple just makes whats in the market better in a better hardware. However, that is why people love about Apple product. They are reliable and user friendly. Apple has great marketing and is viewed as the premium brand above Samsung. Samsung makes a lots of chips for the Iphone. When you cannot beat them, you join them.
I still have faith in AAPL but I am not confident enough to hold their shares right now. I rather own GILD.
I think Apple is not the innovator anymore, which Samsung is more like coming out with new gadgets. Apple just makes whats in the market better in a better hardware. However, that is why people love about Apple product. They are reliable and user friendly. Apple has great marketing and is viewed as the premium brand above Samsung. Samsung makes a lots of chips for the Iphone. When you cannot beat them, you join them.
I still have faith in AAPL but I am not confident enough to hold their shares right now. I rather own GILD.
