Apple smashes Street with revenue of $45.65 billion in Q214

MacDailyNews ^ | Wednesday, April 23, 2014 · 4:33 pm

[dennisw]

Comparing the relative values of companies by comparing their stock prices is dumb, Dennis. That is demonstrated by this current seven for one split that Apple is doing to make its stock more attractive for small investors. It has zero effect on the company. It has a huge positive effect on current investors as demand from small investors will tend to drive the price up.

So why didn't apple split 2-3-4 years ago to bring in small investors.

[Swordmaker]

So why didn't apple split 2-3-4 years ago to bring in small investors.

A stock split does very little for the company. . . unless they intend to issue more stock and need to expand the potential market to sell the new issue. Apple is not planning to do that. Steve Jobs did not particularly care what the price of the stock was doing.

Apple the company gets NO benefit from the trades of the stocks in circulation and in fact the more outstanding stocks there are, the higher the costs to service the stockholders are, by a small increment per stockholder. Each share on the books is an equity position (read liability) requiring communications, attention, and payment of dividends.

There is also turmoil in the market associated with splits. . . and a lot of financial, regulatory, and bookkeeping costs to the company. You will see that in the weeks to come.

[minnesota_bound]

If I by Apple stock now would I get the stock split?

[Swordmaker]

If I by Apple stock now would I get the stock split?

There will be a date certain that will be announced. Holders of the stock on that date will get seven shares. I expect the price to go up before that.

Apple has to make certain preparations before they do it. If you are going to buy, I think you should buy ASAP. I am not an advisor, and you need to make your own decision. The nice thing will be after the split it will be easy to buy Apple a share or two at a time.

[PIF]

Carl Icann said in a CNN interview that he view AAPL as a long term investment.

I plan to use my accumlated divideds to buy more shares after the split takes effect. At $80-100 a share and with some long awaited new product, the stock might return to its current price.

[kevkrom]

Now you have to be thinking $100 a share. That's the equivalent. $100 times 7 = $700 pre split

I think that was a joke - if post-split, the stock goes back to $700, that's a 7x or 8x increase, hence the whole "new life" comments.

[Swordmaker]

I think that was a joke - if post-split, the stock goes back to $700, that's a 7x or 8x increase, hence the whole "new life" comments.

Could be...