“Investors expecting a continued pop in Apple Inc.’s stock after its split Monday may want to temper their enthusiasm,” Steven Russolillo writes for The Wall Street Journal.
“Based on the performance of past splits, the rally could be due for a short-term pause,” Russolillo writes. “Since 2010, 57 companies in the S&P 500 have split their shares. Those stocks have averaged a 0.2% gain the day they started trading on a split-adjusted basis, according to New York research firm Strategas Research Partners. A month later, they have risen just 0.5%.”
Russolillo writes, “But longer term, the average gains are more pronounced. Since 2010, these stocks have averaged a 5.4% increase three months after a split and a 28% surge one year later, Strategas says.”
Read more in the full article here.
Related article:
Apple stock splits 7-for-1 – June 9, 2014
Oh. Slow news day at the WSJ. You can always fill space with a negative article about Apple.
Proactive FUD
Sounds like somebody at WSJ didn’t buy stock when they had the chance and is now venting his frustration.
“Since 2010, 57 companies in the S&P 500 have split their shares. Those stocks have averaged a 0.2% gain the day they started trading on a split-adjusted basis”
He forgets one thing – None of these companies were Apple! 🙂
At the time of writing, Apple is 0.75% up, rather than the 0.2% that Steven Russolillo predicted.
Steven Russolillo might want to temper his predictions about Apple. Apple isn’t an average company.
It seems “fools rush in” anal-cysts are like a moth to flame and can’t resist being burned up in the fallacies and poor reasoning of their predictions.
Back in April when the split was announced AAPL was at an adjusted price of about $75. The price is now $93, a 24% increase, so I’d say the stock has already run.
Wrong … again!
Just hope that while Apple stock is getting traction from the market, their products and vision will still bear the DNA of Steve, and not the market’s way.
Apple up 1.6% so far today.
So far AAPL is up 1.65% and climbing. It could go down before the close, but I think it’s safe to say that AAPL is not your average company (with a .2% gain after a split).
AAPL has also set a new 52 week high for intraday trading. 🙂
Who cares about 1 day. More important is that there appears to be momentum and positive vibes for apple at the moment. That may help continue the stock rise.
Bullshit, bullshit, bullshit, bullshit and if you’re not convinced, BULLSHIT!
I doubt it. Not when other major announcements are probably around the corner. This was only the software side of things. Hardware side is next and will probably be huge. As always the anal-ists get it wrong and always try and put Apple down for no darn reason. Let’s wait and see because if there is going to be a lull it will be a very short one I’m sure.
It sounds like an investor who shorted AAPL at $90 wants to keep the price down. It’s not so easy to short now that the stick has been diluted.
Bogus stats!
it is NEVER a good idea to buy into a stock after a split. Let the market determine the adjusted value. BTW- the stock split is a zero sum game for profit takers and value seekers.
Steven Russolillo predicted that AAPL would rise by 0.2% as it was ripe for a lull.
In reality, AAPL gained nearly 1.5%, which means that Steven Russolillo is ripe for a LOL.