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Apple Sets 2-For-1 Stock Split, Stock Up
Reuters | February 11, 2005

Posted on 02/11/2005 9:48:42 PM PST by HAL9000

NEW YORK (Reuters) - Apple Computer Inc., whose shares have almost quadrupled in value over the last year on the success of its iPod music player, on Friday said it set a 2-for-1 stock split, and its shares rose almost 4 percent.

Shares of Apple have been on a tear as iPod sales have soared with the introduction of less-expensive versions of the music player. The stock has been the best performer in the Nasdaq 100 index and the wider S&P 500 index over the past 12 months.

Apple is also one of the most expensive stocks among the 30 largest technology companies that make up the Computer Technology Index trading on American Stock Exchange.

Apple's last stock split had been in 2000, at the height of the technology boom. Previously it had had a stock split in 1987

Splits do not change the value of stocks but tend to make a stock more attractive to small investors who are often wary about betting on high-dollar stocks, experts said. Splits may also indicate that management has confidence in continuing to grow earnings and that as a result the stock price will rise.

But the high expectations indicated by a steep share price can mean that the company has less room for disappointment. For example, shares of Internet auction company eBay have lost about 20 percent since Jan. 19, when it reported earnings below Wall Street expectations for the first time in at least three years.

Apple is trading at 39 times over its projected for earnings per share next year, compared with a price/earnings ratio of 14 for Hewlett-Packard Co., Dell Inc., the world's top personal computer provider, has a P/E of 32 and Gateway carries a P/E of 30.

But many analysts continue to favor Apple.

Pacific Crest Securities analyst Steve Lidberg said, "We continue to like the stock. The momentum behind iPod and the new Mac products continue to bode very well for the company to exceed expectations in the next several quarters."

He added, "The split makes it a little bit easier to buy for individual investors but it does not change the fundamentals."

Among the 26 analysts polled by Reuters Estimates, 15 rated Apple "buy" or "outperform," 9 rated it "hold," and only one had a "sell" rating. One analyst had no opinion.

Apple has posted better-than-expected earnings and revenues for at least the last seven quarters, and analysts raised their estimates for the current quarter after Apple raised its outlook.

Under the share split, Apple shareholders of record at the close of business on Feb. 18 will receive one additional share for every outstanding share held. Apple said trading will begin on a split-adjusted basis on Feb. 28.

Apple said there will be a proportional increase in the number of its shares authorized from 900 million to 1.8 billion.

Apple shares rose $2.85 to $81.21 at the close of trade on Nasdaq. The stock over the last year has gone from $23 to an all-time high of $81.99 per share on Wednesday.



TOPICS: Business/Economy; News/Current Events
KEYWORDS: apple; economy; investments; nasdaq; shares; split; stock; wallstreet
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To: jriemer

Yes, I understand that--I'm saying it's not adequate enough to be called an uber anything. It's certainly not going to function as an HTPC--the Radeon 9200 isn't exactly what I'd call the best DVD decoder around. The thing's sound chip is a mystery, and it has no surround sound capabilities that I can find out about.

If it had better video and sound, it'd be great. But adding various parts on eliminates the whole "small and compact" feature, and you might as well just get a Windows-based HTPC.


41 posted on 02/12/2005 9:21:40 AM PST by Terpfen (New Democrat Party motto: les enfant terribles)
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To: HAL9000

I'm not surprised Apple is making money:

http://www.freerepublic.com/focus/f-news/1341787/posts


42 posted on 02/12/2005 9:23:04 AM PST by groanup (http://www.fairtax.org)
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To: jriemer; Terpfen
Thanks for the acknowledgement. Again, IMHO (I have not signed any NDA's - just well read and some suppostitions on my part) regarding this.

In the January presentation when the iShuffle and Mini-Mac were announced; the CEO of Sony was present. Why? Sure, sony makes some of the LCD screens for Apple, but his hardly warrents the presence of the CEO of one of the world's largest corporations. Fluke? I think not.

A really great article, elaborating much more on this thought may be found here .

I must again emphasize, this is a truly outstanding article. Some really awesome points are made, and I think this man is 100% correct.

43 posted on 02/12/2005 9:23:20 AM PST by Hodar (With Rights, comes Responsibilities. Don't assume one, without assuming the other.)
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To: HAL9000

That's what various advocates would have you believe. Mostly, what those are based on are a 1 or 2% slide over the last three years - you're supposed to assume that trend will last forever and extrapolate accordingly. The same sort of calculations that global warming wackos use to "predict" average daily temperatures of 240 degrees fifty years from now, IOW.


44 posted on 02/12/2005 9:29:43 AM PST by general_re ("Frantic orthodoxy is never rooted in faith, but in doubt." - Reinhold Niebuhr)
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To: Terpfen
It's certainly not going to function as an HTPC--the Radeon 9200 isn't exactly what I'd call the best DVD decoder around. The thing's sound chip is a mystery, and it has no surround sound capabilities that I can find out about.

May I direct your attention to the article linked here. The fact that the H.264 is onboard; and that Mac 10.4 is designed to work with HDDTV in BOTH Blu-Ray as well as HD-DVD formats is no accident. Why support Blu-Ray is you have a low performance built in DVD player? Now, add Bluetooth and/or ethernet; and you can stream the material in a compressed state from an iTunes-like website; and Mac can compete in the Movie Rental business.

Consider, with Sony, MGM, 20th Centrury and others all supporting different HDTV standards (Blu-Ray or HD-DVD) and these standards being incompatable with each other; the user has a choice of buying a Mac Mini (and stream HDTV the night before, to watch at his leisure), or purchasing 2 HDTV playback decks.

Hollywood Video will have to rent 2 versions of HDTV, until a standard shakes out. Just like in the Beta/VHS days. Meanwhile, Apple cleans up. Just a thought.

45 posted on 02/12/2005 9:30:12 AM PST by Hodar (With Rights, comes Responsibilities. Don't assume one, without assuming the other.)
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To: Hodar

IIRC, the CEO of Sony was there to talk about how their new camera works with iLife. I agree with the article that it was odd to have Sony's CEO there just to talk about a camera linking up with software, but if there really was something bigger coming down the pipe, why not save the CEO appearance until they were ready to announce it?

When we get a Mac mini II with nvidia's DVD decoder and an M-Audio sound card, then I'll start thinking of the Mac mini as a true HTPC. Right now, it's just a foot in the door.


46 posted on 02/12/2005 9:33:35 AM PST by Terpfen (New Democrat Party motto: les enfant terribles)
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To: Hank Rearden

if you did, you might finally get laid, instead of staying up all night making the same post to every thread.


47 posted on 02/12/2005 9:34:58 AM PST by Richard Kimball (It was a joke. You know, humor. Like the funny kind. Only different.)
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To: Hodar

Oh, I have no doubt that movies are in Apple's future. My point is just that it's in the future, not in the present.

And by the way, that link doesn't work. Could you re-enter it?


48 posted on 02/12/2005 9:34:58 AM PST by Terpfen (New Democrat Party motto: les enfant terribles)
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also see the in reply to link for this message.

S&P Keeps Dell at Strong Buy, Apple at Hold
http://www.businessweek.com/investor/content/feb2005/pi20050211_2552_pi010.htm


49 posted on 02/12/2005 9:35:06 AM PST by SunkenCiv (Ted "Kids, I Sunk the Honey" Kennedy is just a drunk who's never held a job (or had to).)
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To: Terpfen
My appologies on the link

THIS ONE SHOULD WORK

50 posted on 02/12/2005 9:37:03 AM PST by Hodar (With Rights, comes Responsibilities. Don't assume one, without assuming the other.)
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To: Hodar
The Mini-mac is so underpowered, that using it as a computer would be frustrating. It's too slow to do movie editing, or graphic art stuff.

This statment is very incorrect.

The speed of the G4 processor is just one of those things you have to try in order to believe.

You can compare Mhz & specs all you want, but I know for a fact that when I sit down in from of a 2.4 GHz Pentium at work, the thing just feels dog slow compared to my 1 GHz Powerbook.

Now I do not do heavy-duty graphics work and if I did I would have the dual 2.5 GHz G5, but for causual photo-editing, editing & joining short movie clips, etc. a 1 GHz G4 easily outstrips a 2.4 GHz Pentium. Maybe it is the interaction of the OS and the hardware, maybe it is just that the software is better optimized, but for the average consumer a Mini-Mac is going to "feel" faster than a Pentium.

Just like your average moving van has more horsepower than my BMW Z3, but I can run rings around the moving van.

51 posted on 02/12/2005 9:37:05 AM PST by CurlyDave
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To: Hodar

Ah, it's the same one you linked to me in another post.

I've got that one bookmarked now. It's great speculation, and it'll probably be on-target. I just think we'll need a Mac mini II before we can get a true HTPC from Apple.


52 posted on 02/12/2005 9:40:41 AM PST by Terpfen (New Democrat Party motto: les enfant terribles)
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Fortune: How big can Apple get?
Monday, February 7, 2005 @ 10:55am
http://www.macnn.com/articles/05/02/07/how.big.can.apple.get/

"this isn't a company about 5% market share; this is a company that is capable of competing with world-class competitors and achieving market shares of 65%, 70%, and even 90%."


53 posted on 02/12/2005 9:49:10 AM PST by SunkenCiv (Ted "Kids, I Sunk the Honey" Kennedy is just a drunk who's never held a job (or had to).)
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To: general_re
Mostly, what those are based on are a 1 or 2% slide over the last three years

I'm referring to Windows's five percent drop in the web browser "user-agent" share from June 2004 to February 2005.

54 posted on 02/12/2005 9:53:47 AM PST by HAL9000
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To: Pearls Before Swine
...Too much competition in the consumer market for iTunes for them to create and maintain a monopoly position. ...

Tell that one to Bill Gates...

Got google?

55 posted on 02/12/2005 9:58:15 AM PST by pageonetoo (you'll spot their posts soon enough!)
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To: Terpfen
The Sony CEO just happened to be in town during the Expo, and was a last minute addition to the program.

The funny thing was that he didn't want to leave the stage - he just kept going on and on. I thought Steve Jobs was about to get the hook.

56 posted on 02/12/2005 10:03:23 AM PST by HAL9000
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To: HAL9000
What's Apples equivalent to MS Exchange and what enterprise IT Director would seriously consider installing it?

What's Apples equivalent to MS SQL Server and what enterprise IT Director would seriously consider installing it?

What's Apples equivalent to MS AD Domain Controllers and what enterprise IT Director would seriously consider deploying it?

What's Apples equivalent to MS Office and what enterprise IT Director would seriously consider deploying it?

Name one major enterprise, like a bank or even a resort hotel, that's deployed and runs an Apple based network.  Actually, there might be one or two resorts but, I've never heard of them.  I'm fairly positive there's no large financial institution.  Apples only fit in an enterprise when a company has a graphic arts department.  And usually, the only reason the Apples get installed is because of the stubbornness of the graphic artists.

The only place these two companies really overlap is in the OS market and even there, they aren't true competitors because you can't buy one and install it on the others platform without emulation.

Primarily, Apple's really in the OS market is because they're in the proprietary hardware market.....and visa versa....it's really one of those chicken/egg situations.

No one at MS is losing sleep over what Apple's next move is going to be....they're too busy wondering what's up with Nux which is in MS's market and is a viable threat to their long term business strategy. 

57 posted on 02/12/2005 10:03:58 AM PST by Psycho_Bunny (“I know a great deal about the Middle East because I’ve been raising Arabian horses" Patrick Swazey)
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To: HAL9000

Well, that explains that. Thanks.


58 posted on 02/12/2005 10:06:41 AM PST by Terpfen (New Democrat Party motto: les enfant terribles)
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To: Hank Rearden
"But I don't wanna turn gay!" - Hank Rearend.
59 posted on 02/12/2005 10:07:45 AM PST by HAL9000
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To: Psycho_Bunny
What's Apples equivalent to MS Exchange and what enterprise IT Director would seriously consider installing it?

MS Entourage, or Mac OS X Mail and iCal, etc.

What's Apples equivalent to MS SQL Server and what enterprise IT Director would seriously consider installing it?

Oracle 10g.

What's Apples equivalent to MS AD Domain Controllers and what enterprise IT Director would seriously consider deploying it?

LDAP?

What's Apples equivalent to MS Office and what enterprise IT Director would seriously consider deploying it?

Office for Windows? Apple iWork?

A lot of IT Directors are experiencing a big climbdown in the corporate world lately. They look like fools for wasting valuable resources with all of Microsoft's security problems.

60 posted on 02/12/2005 10:15:42 AM PST by HAL9000
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