Apple split!

[foiled]

Hello all,

Apple has announce a 7:1 split, and a 30 B dollar buy back.  Now I get that the stock buy back will reduce the shares in circulation and cause a proportional rise in the stock price (as shown in the ~8% gain in after hours trading),  but what will the split do?

I know that the value of the company has not changed, but I have also heard that price creeps up after a split since people get used to a share being worth x (instead of x/2 or whatever), and more little investors (like me) will buy in at the lower price per share.

I think this may especially be true with Apple, with its' high dollar value.  What are your thoughts?  Would it be better to buy before the split, or immediately after?

Thanks

Foiled

[Aman A.K.A. Ahamburger]

Foild, personally I would be very careful with AAPL.. When I brought up the possibility of an AAPL split a couple years back(it was on one of Rovo's threads)the idea was poo-pooed because they were "innovators".. Fact is, Steve Jobs was an innovator.. This is an interesting article from a couple years back, the echos of history.. JMO.

Apple Now Biggest-Ever U.S. Company

Apple's stock-market valuation at Monday's close of business was greater, in nominal terms, although not in inflation-adjusted terms, than Microsoft's closing high of $616.34 billion in December 1999.

[Aman A.K.A. Ahamburger]

I realized something today foiled, if your buying AAPL for the dividends alone, they will keep churning them out for years. Without a doubt. Personally I like to see the growth aspect as well. That's just me though... A bit more on the growth angle.

TROUBLE IN PARADISE? GREG CHRISTIE TO LEAVE APPLE AFTER SPAT WITH JONY IVE – REPORT

Instead of working together to resolve their differences, the report says Ive just circumvented Christie’s leadership of the team during the iOS7 redesign.

Due to Ive’s actions, Christie is reportedly soon leaving Apple. All software designers will then answer directly to Ive.

Christie has been at Apple since 1996. He was responsible for the initial iPhone interface that made Apple into the company it is today. Christie also has several hundred Apple patents in his name including the “slide to unlock” patent.

[Aman A.K.A. Ahamburger]

DI, yes I have a terrible habit of writing Apple like this, APPL.. I apologize for that to anyone who I have annoyed over the years...

Mar 17, 2013 22:32:08 GMT -5 Aman A.K.A. Ahamburger said:

Mar 11, 2013 10:23:16 GMT -5 @wxyz said:

Aman:

I switched to macbook pro about 3-4 years ago.  I have never had a virus, repair, trip to the computer helpers, or even one freeze up in that entire time.  Once I got used to the mac it was great.  I use office for mac and notice no difference.  I will never go back.

 That's the thing right there Mr. Z, that seems to be the consensus.  Everyone says that there is a bit of a learning curve with the mac, but now we are looking at that with Windows 8(Epic fail MSFT).  This is what I'm talking about DI, APPL is facing heat right now because Samsung is hot in the phone market, I see a stock split in APPL's future because of this fact.  However, there are millions if not billions of PC users out there and lots are asking what I am right now, why do I have to buy MSFT's old system? As far as I'm concerned there is a migration to MAC on the horizon(never thought I would be saying this).  It might be two or three years down the road but just think what all those PC users switching to Mac will do for APPL's earnings.  Some will go to a tablet for sure from a PC, there again APPL has the lead in the tablet market and that doesn't look like it will change anytime soon.

Fact is that it's starting to shape up like APPL didn't need Jobs to finish MSFT off all they needed was Ballmer and his ego.. 

While I didn't end up buying a Mac, I did pick up some shares over the summer buying season. Now that they have shown their growth and innovation potential going forward, I will be happy with then gains after the split. Especially because businesses and schools aren't going away from the Windows platform.

It's like USAone was saying on Rovo's apple thread on IP when he was selling out close to the last top, there is more than one way to skin a cat. Ya know?

[Aman A.K.A. Ahamburger]

Honestly DI, I have no idea. I'm sure there will be hype afterwards because of the new lower price, which could mean a double in price.(I should probably hold it for a while after the split but I'm looking to increase cash for now in certain sectors. Penny saved is a penny earned.)

There revenue growth has slowed to like, 5% from around 40% a few years ago. They have lost/pushed out there top talent, and their current business model seems to be suing others and keeping with the cookie cutter products that Jobs came up with. We can't forget that Apple was basically done in the late 90's before they brought Jobs back....

It's not that I don't think apple will keep making money, I just think their management is terrible.

As an aside, I wish I would have known Ballmer was going to be out at MSFT when I was looking at that company at around 26 bucks. I'm happy where we are at though, no sour grapes over here that is for sure.

[Aman A.K.A. Ahamburger]

The reason for increased cash in certain sectors is because I think companies that have to rely on global growth right now face serious headwinds.. (Chinese banks, Putin, the Mid East)... Long term we will be good, but I'm looking to bigger companies that make there money in NA over the next while here.. Costco, Home Depot, Duke Energy, Bell, Suncor.....

[Aman A.K.A. Ahamburger]

Wow! Does that mean you guys have a target on it of $2300-$3000 right now? I mean, iPad sales were weak, Apple store revenue is dropping, they will have taken on like 40 billion in debt to fund their buybacks... I know the iPhone is popular, but what makes you guys put a target like that on it?

[Aman A.K.A. Ahamburger]

Interesting, so essentially you're talking about the hype that will be around it.

At this point, I have zero confidence that global growth will stay steady over the short term. Every single thing that I was watching out for in 2013 happened (bearish signals), and Putin is a giant black swan that I missed.(even bigger bearish signal)

You guys might want to take a look at how the bad loans are getting out of hand in China, and how the biggest real estate investors in Asia have headed toward the exits. JMO.

[Aman A.K.A. Ahamburger]

DIs, I am well aware of the repatriation issue. My issue is that they were dissing Ican for the longest time to buy more shares back. Why? They kept swearing up and down they had new products coming to drive their share price higher.. Now that they lost more talent that was responsible for where they are today....

Not only that, they have gone from a company with no debt, to a company that has quite a bit.. All to buy back shares and pay a dividend. I'm sorry, but to me this screams trouble. For instance, VZ had a huge bond offering, which went to growing their business...

As far as I'm concerned the first three points you listd above where essentially the same point. Fanboys can now afford to buy the shares... That is what I call hype.. Sorry. And from their iPad sales, it seem like the fanboys aren't rushing to buy every new apple product.

I can't accept your Cummings to apple comparison either. Two totally different companies all together. I would say that if not for the iPhone, BlackBerry would still be everywhere...

I'm not discounting your global analysis, at the same time I didn't get the nickname A+++ from being wrong over the last few years here. I also didn't get burnt when the housing meltdown happened because I seen that one coming as well. I was just trying to offer a different perspective. I'm going to go post on my Russian 2012 trouble in paradise thread, you can check it out to see just how close I am to what is going on, if you like.

One last thing, no I won't kick myself if you're right about the target price. I will be happy for you, and anyone else that could lock it in for a nice profit at that time. I'm always making money DI's and I like to see others do the same.

[MN-Investor]

I just have to share this funny experience.

I bought 33 shares of Apple a few years ago for $15K, worth about $21K today. I update our portfolio spreadsheet on Saturdays. I logged into my Roth IRA account and saw that my balance was $198K, not the $70K I was expecting. Turns out that the brokerage firm increased my shares of Apple to 231, reflecting the 7 for 1 split on Friday. However, the price of Apple shares won't technically change until Monday morning, so it looks like I own 231 shares of Apple with a value of $645.57 per share. Wow! Too bad reality returns Monday.

[The Virginian]

You should have sold on Saturday !