Analyst: Apple looking at stock split

“According to proprietary research from top Bernstein analyst Tony Sacconaghi, Apple (AAPL) is seriously looking at a stock split,” Lee Brodie reports for CNBC. “In a live interview on CNBC’s Halftime Report, Sacconaghi says “Our belief is that there’s a reasonable likelihood that Apple will split the stock. ‘We’re confident that the company is looking at that topic and that they’ve started soliciting input on that topic. That last time they solicited input from investors was on the dividend and in short order we had one.'”

“For example, at $600, in a 2-1 split each shareholder would receive 1 additional share for each share they hold. In this example Apple would become a $300 stock,” Brodie reports. “Or, in a 10-1 split each shareholder would receive 9 additional shares for each share they hold. In this example Apple would become a $60 stock.”

Read more in the full article here.

32 Comments

  1. Toni the Tool strikes again. Cook almost ruled out a split last spring when he said the board stidied splits last spring and determined they create no lasting value for shareholders. Toni is just looking for another opportunity to game the stock.

      1. It would mean I owned 1,000 shares of APPL for starters…

        Seriously, a split neither creates value nor loses value. I read somewhere that split might be required in order to add APPL to the Dow. Also a $60 stock might be less prone to manipulation. A $60 stock would definitely be more affordable for the average punter.

        1. There! You said the magic words. “More affordable for the average investor.” Ta Daaaaaaaaaah!!!! Geez, I can’t believe all the people on this site that know nothing about investing, other than they are Apple fanboys, so they think they are qualified to bitch. Bitch about things they just don’t understand. I’ll guarantee you that they wouldn’t understand a reverse stock split either. Thanks Sucker.

          1. Most of the Apple stock is held by the big boys. More affordable but not much available.

            Then the dividend comes in on a 1 to 10 split at $0.25. Woot.

            Once the dividend was announced the split was a no go.

            1. You’re correct most of the stock is held by large institutions. But the stock split will create more shares so more shares will be available. And they will be more affordable. And it’s 10 -1 not 1-10. I have no idea whether or not the stock will split soon. But your comment about the dividend does sound accurate. But I will make a bold guess here that within one year it will split anyway. I have not owned shares for a year and a half. They’re just too expensive for the money you can make. Options are a much better choice. At least for me. I have made much more money with options than I could’ve ever made purchasing shares. I just wish that I had started with options 10 years ago.

      2. One way it’s better is if you trade options. the minimum for options is 1 contract, which equals 100 shares – so if you’re doing a cash secured trade you need about $60,000 just for one contract.

        1. And iwouldnhavento argue this is why Toni the Tool wants a split – it gives more power to those who want to manipulate Apple stock by cranking be stock options related to it.

          The are no facts to support that Apple has any plans to split its shares. This is Toni the Tool shouting – demanding – again as he did with his hissy fit over a dividend. On the subject of a dividend, schmucks like us will get fractional shares in return. But big institutions will collect hundreds of millions if not billions for doing nothing.

          God, I loathe that cork-soaking bastich.

      1. IIRC, earlier this year, at the same time they announced they would be paying dividends. They are buying back shares to have them to give as stock grant bonuses to employees. They are doing it so as to not dilute existing share value.

        A split would mean they could make smaller stock grants to employees; for instance an employee deemed worth a $300 bonus but not the $600 of a single share at today’s prices

  2. “If Sacconaghi’s research is correct, it could be a big deal because it would make Apple more accessible to smaller investors.”

    Bullshit concept. 1 share of AAPL at $600 growing 35% per year is a lot more valuable than 20 shares of a $30 equity growing at 10% per year.

    Price of an equity is not what drives investors, it is the rate of growth. Investors concerned about the number of shares they get for $600 are idiots, and won’t be impressed by EPS growth, margin growth, PPS growth. These people do not have the resources to drive AAPL for more than a minute.

    The ONLY potential benefit to a split is a possible inclusion in the DOW index, thereby opening AAPL to Funds limited to buying DOW components. Even that would be problematic as Apple is going to continue growing at ~35% per year for a long time, so no matter the stock price, AAPL will make the DOW an AAPL Index. The DOW committee doesn’t want that to happen.

    1. wrong. it’s not the only benefit. another would be that more people (such as me) would be able to buy and sell AAPL options. I need at least 100 shares to write a covered call. I have only 50. If those shares become 500 shares, then I could write the calls.

    2. In your mind, what is a long time? I don’t see 35% growth for more than another 3 years at best. I think growth will slow down quite soon, but still be much higher than the broader market.

  3. Woohoo 10:1 bring it on. It allows the guy buy 100 shares for little over $6,000 not 60,000. Call me stupid but I only out in 3,000 years ago and it is only worth 150,000 🙂

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