“So where do I think Apple will come in when they report later today? I personally think they will blow away expectations, although it always seems like you can never do good enough for some people,” Mobile Guru writes. “I doubt the stock will do a Google but you never know.”
Mobile Guru writes, “Long term, Apple seems to be in the right place for Mobile and they have some key advantages to be very successful going forward. Stock price wise I think they would do better with a $30 stock instead of a $300 one. I know it all works out the same, but it’s just like IBM did 20 years ago – they would split every few years just so the average investor could buy shares. I really believe they would quickly go from $30 to $60 compared to how many years it would take to go from $300 to $600. This could be the peoples’ stock like IBM was years ago.”
Read more in the full article here.
[Thanks to MacDailyNews Reader “GetMeOnTop” for the heads up.]
Oh yeah Apple will record another Record Profits and Revenues for FS10
” width=”19″ height=”19″ alt=”grin” style=”border:0;” /> No brainer!
Buy AAPL stocks as it will be $401 easily in 2011
Split? Why not!!!!! Stocks owner will only benefit even more.
” width=”19″ height=”19″ alt=”grin” style=”border:0;” />
Go Apple … Up higher!!! 401k Happy
Oh yeah Apple will record another Record Profits and Revenues for FS10
” width=”19″ height=”19″ alt=”grin” style=”border:0;” /> No brainer!
Buy AAPL stocks as it will be $401 easily in 2011
Split? Why not!!!!! Stocks owner will only benefit even more.
” width=”19″ height=”19″ alt=”grin” style=”border:0;” />
Go Apple … Up higher!!! 401k Happy
It made sense to split shares back in the day when round lots were required to get reasonable order commissions. That’s no longer a requirement, so there’s absolutely no reason for splits today.
It made sense to split shares back in the day when round lots were required to get reasonable order commissions. That’s no longer a requirement, so there’s absolutely no reason for splits today.
The reasons are psychological and valid.
The reasons are psychological and valid.
I’m expecting gross revenues of over $20 billion with Mac sales right at the 4 million mark. Go AAPL! Go Team!
I’m expecting gross revenues of over $20 billion with Mac sales right at the 4 million mark. Go AAPL! Go Team!
Price equals value 90% of the time. Pricier car, pricier jewelry, pricier house. By definition all are seen are more valuable than their less pricey peers. That’s where Apple want to be psychologically.
Seriously, do you think they want to be seen as a cheap $20 stock? That doesn’t fit their image in the least. Not their image of themselves, not the image they want to have in the eyes of others.
No way they’ll split.
Price equals value 90% of the time. Pricier car, pricier jewelry, pricier house. By definition all are seen are more valuable than their less pricey peers. That’s where Apple want to be psychologically.
Seriously, do you think they want to be seen as a cheap $20 stock? That doesn’t fit their image in the least. Not their image of themselves, not the image they want to have in the eyes of others.
No way they’ll split.
Very good reason to split if your focus is on increasing valuation. Plenty of (very) small investors would buy a handful of shares of the company that makes their iPod/iPad if they were $30. However, if Apple is more concerned with smoothing out volatility and avoiding a bubble that pops, those are not the kind of investors you want. In that case, better to keep the shares a little expensive, though they could go down to $200, maybe $175, without risking too much.
Very good reason to split if your focus is on increasing valuation. Plenty of (very) small investors would buy a handful of shares of the company that makes their iPod/iPad if they were $30. However, if Apple is more concerned with smoothing out volatility and avoiding a bubble that pops, those are not the kind of investors you want. In that case, better to keep the shares a little expensive, though they could go down to $200, maybe $175, without risking too much.
Absolutely no reason for splits today?
I thought the idea that a few more of us around here could get in on the action made a lot of sense.
Cutting the price of shares in half won’t last long anyway because Apple is underrated.
Compared to its market value, Google, to me, is highly overrated.
But then again what do I know, I’m not a player.
Absolutely no reason for splits today?
I thought the idea that a few more of us around here could get in on the action made a lot of sense.
Cutting the price of shares in half won’t last long anyway because Apple is underrated.
Compared to its market value, Google, to me, is highly overrated.
But then again what do I know, I’m not a player.
RIMM split awhile back and look at them now.
Apple will stay with the Madonna and Prince principal and continue to generate hype a la speculation. They won’t even break up earning’s into mobile. Mysterious rules.
RIMM split awhile back and look at them now.
Apple will stay with the Madonna and Prince principal and continue to generate hype a la speculation. They won’t even break up earning’s into mobile. Mysterious rules.
Splitting was never done for psychological reasons. Back in the day, it was ONLY done because you did NOT have online trading web sites; you had professional brokers, and the commissions on the action was brutal. The only reasonable way for brokerage to get a decent commission on a stock trade was to trade in large lots of shares (hundreds, thousands, etc), regardless of the price of the individual share. Therefore, to make it possible for people to get in on the shares, IBM (as well as Apple, MSFT, and others) used to split their shares, keeping them below $100 per share.
There is absolutely no reason to do this anymore. You can even by a fraction of a share today, through one of the dozens of online brokerages. Trade commissions are as low as $7 (and for some cases, even free, with monthly subscription).
There is no way AAPL would grow from $30 to $60 (if it were to split 10 for 1) within months, the way it grew $30 to $60 the first time around. This kind of growth would mean that AAPL would end up being almost twice the size of Exxon-Mobile, currently the largest company in the world by market cap.
It doesn’t matter how well Apple is doing business-wise; its market cap simply cannot become that large that fast. No financial market in the world will consider it THAT successful.
Splitting was never done for psychological reasons. Back in the day, it was ONLY done because you did NOT have online trading web sites; you had professional brokers, and the commissions on the action was brutal. The only reasonable way for brokerage to get a decent commission on a stock trade was to trade in large lots of shares (hundreds, thousands, etc), regardless of the price of the individual share. Therefore, to make it possible for people to get in on the shares, IBM (as well as Apple, MSFT, and others) used to split their shares, keeping them below $100 per share.
There is absolutely no reason to do this anymore. You can even by a fraction of a share today, through one of the dozens of online brokerages. Trade commissions are as low as $7 (and for some cases, even free, with monthly subscription).
There is no way AAPL would grow from $30 to $60 (if it were to split 10 for 1) within months, the way it grew $30 to $60 the first time around. This kind of growth would mean that AAPL would end up being almost twice the size of Exxon-Mobile, currently the largest company in the world by market cap.
It doesn’t matter how well Apple is doing business-wise; its market cap simply cannot become that large that fast. No financial market in the world will consider it THAT successful.
OJ and G4 are correct. Once again the reasons are psychological and valid. Stocks are not cars or jewelry.
OJ and G4 are correct. Once again the reasons are psychological and valid. Stocks are not cars or jewelry.
Why do you think Warren Buffet allows his stock ($125,000/share) to remain high?
Why do you think Warren Buffet allows his stock ($125,000/share) to remain high?
There’s no way there will be a 10:1 split on AAPL. Maybe 4:1 to bring it under $100/share … MAYBE.
There’s no way there will be a 10:1 split on AAPL. Maybe 4:1 to bring it under $100/share … MAYBE.
He (?) may be a “Mobile Guru”, but he’s no Business Genius. “I really believe they would quickly go from $30 to $60 compared to how many years it would take to go from $300 to $600.” Really? Any of you folk recall the recent comment that 21X Forward Earnings seems a bit steep? The bigger your P/E (or your Forward Earnings) the more likely you are over-priced. The further your valuation is from where the rest of the market is, the greater the chance of a “correction”.
You want the price of stocks you own to go up. You do NOT want the over-valued stocks you own to undergo a correction.Apple is the most valuable tech company today. The price of AAPL reflects that fact. Would I like to see a split? Sure. I’d like to buy back in. Will it raise the Market Cap of the company? Maybe briefly.