“With Apple’s (AAPL) split-adjusted shares to begin trading on June 9 (record date of June 2), what should current shareholders do with the issue?” Joel Elconin writes for Seeking Alpha. “Billionaire investor Carl Icahn’s advice on the issue has been strong so far. Although he recently added to his stake, the timing of it should be noted… He made the purchase at much lower prices when Apple shares traded in a fairly narrow range ($522.81 to $549.00) during the month of March.”
“On Thursday, Benzinga reported that George Soros cut from his 291,000 share stake to 81,000, and Dan Loeb sold out of a 100,000 share position. Perhaps Soros is taking advantage of the most recent pop to dispose of the remainder of his position,” Elconin writes. “From a technical perspective, it appears that the post-earnings run may be stalling. Since peaking on May 6 at $604.41, Apple had fallen back under $590.00 and had made multiple highs in the $590.00s and has had a difficult time returning to $600.00 over the past two weeks. However, the issue has breached that level in Monday’s trading and is attempting to post its second close above $600.00, since October 2012.”
“Another potential catalyst to exiting the issue is that if Apple follows the pattern of MasterCard (MA) post-split, which could signify some significant downside in the issue,” Elconin writes. “After announcing a 10-for-1 split, $3.5 billion buyback plan and a boost in its quarterly dividend on December 10, MasterCard shares spiked higher and continued to rally into the record date (January 9). Unfortunately, those that chased the issue into the split nearly bought the top. After reaching $84.42 on the record date, it rallied to another all-time high on January 10 ($84.75) and has been in a steady decline ever since.”
“With all the good news seemingly out for Apple, a potential road block at $600.00 developing and the possibility of the MasterCard-split scenario coming to fruition, investors may want to pay close attention to the closing price on its upcoming record date (June 2),” Elconin writes. “Just in case the price activity in Apple begins to resemble that of MasterCard’s post-split, investors may want to reevaluate their position in the issue.”
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