“When Apple Inc. does something, it always seems to do it in a big way. Even when that involves splitting up,” Rex Crum writes for MarketWatch. “That would be the company’s stock. Come Monday, investors will see something they haven’t seen in more than five years: Apple’s stock price at below $100 a share, the result of a 7-for-1 stock split.”
“When Apple in April said it would split its stock, it was one of the most visible moves by Chief Executive Tim Cook to show that this is a different Apple than the one left by Steve Jobs in 2011,” Crum writes. “While Jobs oversaw a two-for-one stock split on Feb. 18, 2005, which left Apple that day with an adjusted price of $41.49 a share, Jobs was known to be loathe to the idea of anything that would seem to dilute the value of Apple in any way, including anything that would return some of the company’s capital to its investors.”
“If you had bought just one share of Apple on the day of its 2005 stock split, your return on your investment would be almost 1,470% as of Friday. And on Monday, that check you wrote nine years ago for $41.49 will provide you with seven shares of Apple worth about $93 each,” Crum writes. “Big sales, big deals ($3 billion for Beats, which nearly equaled the combined price of all the acquisitions Apple’s has announced), big changes to its iOS and Mac OS technologies , and now a big stock split. In less than six months, that’s a Grand Slam of big things, even for Apple.”
Read more in the full article here.
Related article:
Apple’s stock has now split 7-for-1; outstanding shares increase from 1.8 billion to 12.6 billion – June 7, 2014
To The Moon Apple !
Big stock spilt…or split?
We all have learnt by heart the adage ‘Don’t cry over spilt milk,’ but when it is whiskey that is altogether another matter. Remember this ad (ignore the preposterous analysis)
http://www.classroomtools.com/subad11.htm
Ridiculing a headline misspelling works to effect a rapid correction of same, one observes
The ad was definitely effective in its imagery needs the text to define the context. Without that I would probably say cheap whiskey – so what?
Definitely do not buy into the subliminal messaging.
I had about 40 shares and after the stock almost 80. Sadly had to sell half and back at about 38 shares again and now about 280 shares! Yey! Wish I would have still had my 80 shares though! I bought in years ago at around $65 a share.
My original cost was $18 a share, multiple-split-adjusted cost is $0.64. I’ve held mine a long time…
You must have bought way back in ’99 or so. I work my split adjusted cost per share at about $0.79. It’s a beautiful thing.
My original cost was $12 a share. My wife, my son, my attorney, my accountant, all my friends told me I was crazy. I’m sitting on a million dollars today.
From one AAPL investor to another, let’s be honest: Just because that decision paid off does not mean you were not crazy.
Here’s to the crazy ones…
Of course you are, because it’s the internet, and everyone is rich and successful here!
My original share price is now $1.07.
After the 2005 split I had 1000 shares.
I first bought Apple shares around 2003. At that time I would buy and sell again thinking I could catch the ups and downs and grow the holding. Unfortunately I sold at ~32 (pre splits) just before earnings announcements. The earnings were good as usual but the market finally realized this iPod thing was for real. The stock took off and I was left behind.
Ended up buying in at a higher price. I can’t complain too much since the initial investment of 16K is now valued at $150K. Still it would have been closer to 500K if I hadn’t sold.
I wonder if the market will react the same with the iWatch as they have with other new Apple products and services. Will they wait to buy the stock until a few earnings have been recorded like in the past or will they buy the stock now, before the product is revealed?
Tim Cook: Winning over Wall Street; building out the infrastructure; expanding into new markets. Very impressive.
Samsung has three CEOs, Microsoft has a rookie at the helm and Google has a fragmented Android environment. All are vulnerable to a robust, focused, vertically integrated global competitor intent on both expanding and protecting its intellectual property.
Jobs knew what he was doing when he anointed Cook.
To infinity… and beyond
I think it is important to note that a pull back after the split is normal and a bit of a rest before reaching (or is it ricking) higher to $700 (pop $100) and beyond is normal and expected and nothing to fear.
I am sure the AnalCysts will try to poo poo the initial drop.
up up and away…
Irrational exuberance. Remember 2012. Those who do not learn from the past are doomed to fail in the future.
I have some sold to open call options in case of an unexpected pullback and definitely not buying call options again this time around
Puts? You have purchased some puts? Options, calls or puts, are a fine way to invest. Less money invested and much more potential upside. And of course you’re not investing and forgetting. That’s never a strategy. Learn to manage your investment. No matter whether it’s stocks or options or mutual funds. Manage your money or it will manage you. Have a plan. Have a strategy. Buy and hold (hope) forever is not a plan. Taking your profit when ahead is a plan, it’s not evil. Waiting for your investment to go back up again so you can get back to even is poor planning. Actually it’s no planning. And there are better investments than AAPL if you are a dividend investor. So that’s never an excuse for buy and hope. Pay attention.
Yah. All these poor slobs bought-and-held their sad investments right into the…
Rich house?
Irrational exuberance in the short term, but Apple’s continued software advances and rumored hardware advances suggest that by New Years 2015 Apple stock holders might be celebrating a year of exuberant rationality.
mshahasaver – This is not your Daddy’s Apple.
This behemoth is holding three aces and is now vectoring an AC130 Spectra Gunship to Google’s Headquarters – Blast shields down – THE PHOENIX RISES.
Enjoy the ride people.
I think they are going to kick Android’s ass, in part because Samsung can’t keep up with Apple on the software front, have no PC vs mobile integration strategy and already have very mixed feelings about Android. But Google could still do well if they move on.
The company that I see being shredded is Microsoft. Apple’s integration between OS X and iOS is going to drive more people to Macs. If (when?) Apple introduces another lower tier of laptops (MacBook Mini?), desktops and Mac Mini’s with their own ARM processors Microsoft and its OEMS are going to take a blood bath as Apple takes another thick slice off the top of the profit pie. An AppleTV that runs apps and integrates with Macs, phones and tablets is going to sell far better than Xbox and also move people to Mac.
If Microsoft isn’t worried about a sea-tide move from Windows to Mac in the consumer space they have their heads in the sand.
There are very few areas where Apple can clearly grow relative to how big they are now. But and increase of PC share from 10% to 25% to more would be a bit boost to profits and share price.
Right now Microsoft’s billions in profits must look like a tasty lunch to Tim Cook.
I have been with Windows since the beginning. Windows 8 is an abomination and yesterday I got a nasty virus on one of my Windows 7 machines. In 2012 I received my first Apple product; an IPhone 5. This year I will be investing in an iPhone 6 and a new Mac or two. Thanks Apple, for doing it right.
So after the split will the stock move in correspondingly smaller increments, or does the human brain have trouble thinking smaller?
I just became a millionaire ! They split the stock but the old price shows. 🙂
Feels good!.
For now anyway…