We currently have no independent reports corroborating Burnett’s statement.
MacDailyNews Note: Stock splits change the selling price of shares and the number of outstanding shares are adjusted accordingly. Splits do not change the company’s market value. For example: Acme Widgets had 100 shares outstanding at $200 per share. It executed a 4:1 stock split. Acme Widgets now has 400 shares outstanding at $50 per share. An individual shareholder who owned one share at $200 pre-split, now owns four shares at $50 post-split. Apple’s last stock split was 2:1, announced on February 11, 2005 and executed on February 28, 2005.
Gabriel Madway reports for Reuters, “Apple has given little indication of how it plans to use roughly $40 billion in cash and securities on its balance sheet. Given the company spends little on acquisitions, analysts and shareholders want Apple to put the money to work through a dividend or share buyback. But Jobs said if that were to happen, Apple’s share price would remain the same.” (Bold emphasis added by MacDailyNews Editor.)
Madway reports, “He said the company he founded was now big enough that it had to ‘think big’ to move the needle.”
Full article here.
UPDATE: 3:50pm ET: Jim Goldman and Erin Burnett throw cold water on the stock split rumor. Watch the video here.
5 Day Most Commented