“We know at least two things are going to happen next Monday: Apple’s shares will spit 7 for 1,” Philip Elmer-DeWitt reports for Fortune. “Apple will give more than 5,000 developers new marching orders.”
“The stock has been on a tear since April, when the split, a small dividend increase and a big new share repurchase plan were announced. In mid-day trading Tuesday, Apple was setting new 12-month highs.,” P.E.D. reports. “Whether it’s got ahead of itself is the multibillion-dollar question, and on that opinions are divided.”
Read more in the full article here.
The effective date of the split is June 9th, not “next Monday.”
Whether the current AAPL price is “ahead of itself” depends on what is announced “next Monday.” So THAT is the actual “multi-billion dollar question,” not the current AAPL price. Philip Elmer-DeWitt was apparently desperate for something to write about today… 🙂
In some circles this Monday is the 2nd and next Monday is the 9th.
No, because he said “TWO things” are happening “next Monday.” One is the WWDC keynote (where “Apple will give more than 5,000 developers new marching orders”), which is actually “next Monday” (6/2). The other is the stock split, which is effective the following Monday (6/9).
Indeed, if you don’t think the this/next ambiguity isn’t real, try taking the “next” exit on the freeway, when it’s the last gas station for 30 miles and you’re on fumes, trying to back up on the shoulder to “this” exit. ;.)
The effective date is June 2. That’s the date you must be on record as owning AAPL stock in order to be included in the split. The actual split date in June 9.
That is NOT true. You can buy AAPL between 6/2 (the “record date”) and 6/9 (the “effective date”). You will pay the pre-split price per share. On 6/9, even if your transaction is not complete, you will have seven times as many “in progress” shares at the post-split price.
For a dividend, the “record date” does matter. You must own the shares by that date, in order to be eligible for the upcoming dividend payment. But for a stock split, the “record date” (6/2 in this case) is basically meaningless.
How about them Apples. We moved past the $628.33 Yahoo Analyst Mean Target already today. Not to worry, we are moving up to the $642.50 Yahoo Median Target soon. That will hold AAPL back. Not really. $642.50 will soon be $91.79 and $100 will be in sight. The WWDC news and then the iPhone 6 jump will be next and then the back to school and then all will see that we passed the scary $100 and no one even noticed the the old scary Apple will never get past $705 price has come and gone and know one noticed the speed bump when we were there again. Yes,clueless to the right of us and more to the left. And yes, please short AAPL some more. I love rocket boosters on the long road up!
After the split, do you think it will rise over 100? How much?
In the near term, it depends on what is announced during the WWDC keynote on 6/2. In the long term, AAPL will (eventually) rise above $100 post-split. “How much?” Potential is unlimited. 🙂
I’m hoping even with basic news about new products, nothing negative lets say, the lower priced stock alone would pop it up over 100? Maybe even into the 120s :)?
“Basic news” will not do it, in the near term. However, the timing of the stock split cannot be coincidental. I mean, Apple could have done a split at any time, or not done it at all. Apple has some MAJOR announcement(s) for the WWDC keynote, not just “here are the new versions of iOS and OS X…” Apple does NOT want AAPL to “stagnate” below $100 a share for too long. 🙂
And that 7-for-1 number was carefully selected. When AAPL crosses $100 a share post-split, that milestone also happens to be the ALL TIME HIGH for AAPL (which is currently just above $700 a share pre-split).
( you mean 600 pre split ;)? )
The current all-time-high (closing) price for AAPL is just above $700 a share, which equals just above $100 a share after the split. It’s a nice “clean” number to use to declare “double win” for Apple. I’ll bet Tim Cook picked 7-for-1, instead of a more typical 5-for-1 or 10-for-1, for this reason.
Fingers crossed and more shares purchased at $530.00. Who needs a savings account!?
Apple all-time closing high was September 19, 2012 -$702.10.