“Apple took a big leap toward becoming ‘shareholder friendly’ when it announced a 7-to-1 stock split Wednesday, a move that will shave off hundreds of dollars from current share prices, JMP Securities’ Alex Gauna told CNBC on Thursday,” Jeff Morganteen reports for CNBC.

“The stock becomes increasingly attractive to retail investors this June, when the measure takes effect and brings share prices into the mid-$70s, based on Wednesday’s closing price. Despite the more accessible entry point, Gauna has a counter-intuitive idea on how to play the stock: buy up its key suppliers,” Morganteen reports. “Gauna named microprocessor company ARM Holdings, semiconductor company Skyworks Solutions and Knowles, which supplies microphones to Apple and Samsung, as investment ideas. Those suppliers are growing faster than Apple itself, Guana added.”

“Tom McClellan, editor of The McClellan Market Report, called the 7-for-1 split a ‘peculiar’ number. ‘It’s also interesting that if you take the recent share price of Apple, well up in the $500s, and divide that by seven, that would put the share price of the split-adjusted Apple right down smack into the middle of the price range of all the 30 current Dow components,’ he said on ‘Halftime Report,'” Morganteen reports. “McClellan expected that Apple would join the Dow. ‘I think it’s likely to happen, and I think that apart from that, Apple’s likely to head up to a top that’s due in about June and then settle back some,’ he said.”

Read more in the full article here.

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