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AAPL needs to do a stock split

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April 02, 2013 – Comments (25) | RELATED TICKERS: AAPL

I submit AAPL just needs to do a 10 for 1 stock split.  It is time to put it in reach of the average retail investor and small trader range.  One of the things to be able to do is to "trade" around one's holdings with options.  The problem is 1 contract equals 100 shares, and at $430 a share that keeps many people away.  Can't sell covered calls nor sell puts.  But you do a 10 -1 split I think you will actually see the stock climbing again.  A simple split will open value.

Doubt they will listen to me but the suggestion is now out there.

25 Comments – Post Your Own

#1) On April 02, 2013 at 6:39 PM, Mega (99.96) wrote:

http://www.reuters.com/article/2013/03/15/us-options-mini-launch-idUSBRE92E0ZT20130315 

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#2) On April 02, 2013 at 7:29 PM, L0RDZ (79.68) wrote:

Right now  Apple is  going down,  doing  a   10  for 1  split  does not  cure  what  is  affecting  the  stock price of  this  rotting  apple.

Getting  poor or poorer  people  into  a  falling knife is a  dis-service.

Selling covered  calls and or  selling puts  is  not  what  is  the  real problem or  issue here.

Perhaps  Apple  should  hire  those  what  do  you call them ?   those  people who  meddle  and  suck up  to  the government  for  favors ?   the  ones  who  got  the government  to  change  their  stance  on  not  only  not cutting  medical  funds  to  the medical  community  ~ medicare  but  managed  the  gov  to make a  180  turn and in  fact   increase  the  money  going  to  be  sent  to  the medical professional.  by  3.3%

The  name  of  those  type of  people  is eluding me,  but the affect  upon  the  medical  stocks  leaked  way  before the  official  thing  was  announced.

 

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#3) On April 02, 2013 at 7:30 PM, awallejr (79.58) wrote:

Link "not found."  Guessing it has some applicability here?

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#4) On April 02, 2013 at 7:34 PM, L0RDZ (79.68) wrote:

Awall  he's  talking  about  that  they  have  mini  futures  and options  where  you   can  option  10  shares instead  of   the  100.

But  mini's  still won't fix   things,  hopefully  you didn't  click on  a  link that  stole  your  email's  passwords  and  will be  spamming out  junk.

 

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#5) On April 02, 2013 at 7:44 PM, awallejr (79.58) wrote:

I disagree there Lordz.  The knife has stopped falling, it just isn't rising much.  A company share price is covered by almost 1/3 cash, with under 10 PE, still growing yoy.  No that isn't a dying company.  It is a company that is facing greater competition. But it is still growing and still with some great products.

I know I would be buying more and trading around with options if the stock was selling at $43.  Right now all I have are recently bought 8 shares.  Had 5 and just added 3 after hours.   Will take me years before I wind up with 100 shares I suspect.

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#6) On April 02, 2013 at 7:48 PM, awallejr (79.58) wrote:

Oh dear, I did click on the one in #2. Am going to be pissed if I start getting email spams now ;/  And it is not just a matter of selling mini option plays I honestly submit splitting will widen the base and have a positive impact on the price.

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#7) On April 02, 2013 at 7:48 PM, awallejr (79.58) wrote:

Umm #1.

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#8) On April 02, 2013 at 8:27 PM, L0RDZ (79.68) wrote:

What has  apple  done  that  is  remarkable  recently ?

Where is all  the supposed  billions  in cash ?  in  places  outside of  the  US ?  places like Cyprus  ?

Places  like  China ?  places  where  the  shareholder isn't  going  to ever see that supposed cash if  it  really exists  think  Enron here  or  many other companies that once cooked its books.

I'm sure Sony  once  thought it was  the  it  with its walk-mans  as  well as  that company that  made  that  very thin  flip phone the razor.

Lets face it, Apple  is  ripe.

Change  your  password  Awall  if  you think you clicked on a bad link  just to be on the safe side.

 

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#9) On April 02, 2013 at 9:04 PM, Option1307 (30.06) wrote:

awallejr

Glad to see you're buying as well, AAPL is a buy at these levels

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#10) On April 03, 2013 at 1:08 AM, awallejr (79.58) wrote:

What has  apple  done  that  is  remarkable  recently ?

Remarkable?  Nothing lately.  Quality?  Plenty.  I like the products.  I have friends and family who love the products.  Is there there competition?  Yes.  But that doesn't mean the company is toast.  Do the damn split and you will see the stock selling in the 70's.  Sorry I make good predictions.  Been doing so for years here and I submit if Apple listened to me shareholders will be happy.

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#11) On April 03, 2013 at 11:19 AM, jiltin (29.89) wrote:

More than anything, AAPL has to release next version with slightly less cost even though they are $199. Samsungs $250 for S4 is a mistake and AAPL much cash on the competitors mistake. AAPL must regain all the lost customers like the way NFLX recovered. 

Regarding split, how the company gets benefit? If the company gets benefit, they will initiate such ideas.

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#12) On April 03, 2013 at 2:23 PM, Valyooo (99.41) wrote:

Buy 2 more shares and trade the mini-options....simple

 

I think what you are suggesting is apples main problem . The company is too focused on the declining stock price and pleasing wall street....just run the damn businss and make a new product I can't live without, don't waste time on stupid thingslike stock splits and defending yourself to einhorn. 

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#13) On April 03, 2013 at 2:43 PM, L0RDZ (79.68) wrote:

I've lived quite  well  without  Apple products,  a  few years back  I   looked  into  the  Apple  what  I  found  was  a  pc  that  doesn't  really  do  anything,  products  that require  you to  either  purchase or  buy additional  software for  it  to  do  anything.

Products  that  still haven't  convinced me  into using them if  they  paid  me.

Given  all the supposed profits by  apple and  the  extremely low  tax  rate apple  has  paid  given  all its  supposed  revenue ?   apple  could  if  it  wanted  to  could  pay  the  tax  and  have  said  $$$  returned  to  the US ?

Just one problem ?  what  if  that money doesn't really exist ?

I  know most people  would  laugh at  the mere thought of  such...

But  the truth  is  often  more stranger than fiction.

 

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#14) On April 03, 2013 at 5:43 PM, awallejr (79.58) wrote:

Buy 2 more shares and trade the mini-options....simple

It isn't about just trading options, it is opening up the market to more potential investors.  There really is no need to keep the stock so high.  Doing a split makes it more enticing to the retail investor.

Do a 10 for 1 and I am willing to wager it is selling in the 80s in a year.

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#15) On April 04, 2013 at 4:25 AM, jiltin (29.89) wrote:

The best way for AAPL is to release attractive 3 or 4 different size phones in next 6 months, lower the price and kill the competition. This makes buying spree, and simultaneously announce buyback shares and split the shares. Once the customers are back and whole world sees crowd again for apple products, issue additional shares for further growth. This will compensate the loss they make on lowering the price.

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#16) On April 08, 2013 at 12:11 PM, Valyooo (99.41) wrote:

So you think it will increase in market cap by 350 billion dollars because investors that dont even have $450 to invest will drive the price up that much?

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#17) On April 08, 2013 at 12:28 PM, powerhousemouse (< 20) wrote:

I'm with Valyooo. The reason I bought AAPL was because of what they do. Run the company with the same vision as Jobs. Who didn't think or forsee that the stock price would come down after Jobs passed. If the stock goes down because of a CEO quittin suddenly it isn't much different if the CEO dies just more tragic. There is still management uncertainty.

AAPL doesn't need to pull a Microsoft and release a product that spent half the time it needed in R&D just to please the market and investors.

 AAPL needs to keep working on the Iphone 6 the Ipad and all the other great products and keep them solid.

I purchase their products cause they are solid just like the company has been for the past decade.

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#18) On April 08, 2013 at 3:44 PM, awallejr (79.58) wrote:

Purchasing their products and purchasing their stock are two different things.  And yes Val, that has been a historic use of doing stock splits for tons of companies.

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#19) On April 09, 2013 at 5:01 PM, Schmacko (55.33) wrote:

Retail investors really don't drive stock price on large cap companies.

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#20) On April 09, 2013 at 6:58 PM, awallejr (79.58) wrote:

Loss of them can still impact.  CL and KO come to mind with respect to stock splits.  There really is no reason to keep the stock in the 400s now that Jobs is dead. 

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#21) On April 13, 2013 at 2:18 AM, jiltin (29.89) wrote:

Since I think it is appropriate here, I am repeating part of my comment here.

 I recently bought aapl at $423 with the intention of keeping for a long time.However, I sold it today at $431 after reviewing and watching for a day.


Right from apple lawsuit with samsung, there is a business competition.Recently, samsung announced S4 with $250. I was wonder why did they keep S4 at $250 while apple sells at 199!

It was answered within last two days. Samsung started price war with apple products ! Amazon and walmart started selling S3 for 9.99 for two year contract. They ostensibly released S4 with $50 over apple price only to reduce the price of S3 to 9.99

You may be knowing that Bestbuy has the deal withs samsung for 1600 stores (samung exclusive space for their products). Above all, they announced Samsung Maga with two different sizes.


I work for a company of 70000 employees and within my department appx 7 people got the S3 ordered leaving their iphone 4/4s. I placed two S3 today as I do not like to pay for $199 for iphone5 or $250 for S4. Today I came to know walmart online is backordered for s3 and they still offer 9.99. If walmart online sold out and backordered, review how many people switched the phones.


I do not see any escape for apple except it is severely beaten by samsung in price war.The impact will be seen in next 3 to 6 months and stocks likely go down until apple makes a dent.

How will they get back all the lost customers ? They are losing customer like the way NFLX lost them. If iphone is their main bread, then AAPL will suffer big time in near future. 


http://www.fool.com/investing/general/2013/04/11/when-will-samsung-stop.aspx


I may be right or wrong as a newbie, but I do not want to take a chance with AAPL anymore.

 

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#22) On April 13, 2013 at 11:27 AM, awallejr (79.58) wrote:

I think the slowing growth projection is already priced into the stock.  We will find out fairly soon what the story is when AAPL announces its earnings.

I personally prefer the Iphone, but I admit the larger screen of the S3 was tempting.  But the Iphone was never intended to compete on the low end market.  If AAPL ever decided to make a cheaper phone I suspect they would cream Samsung.

Back out AAPL's cash and you are looking at a stock under $200 earning about $44.  A company with no debt, selling for ex-cash at about 4.5 PE with a yield that beats any bank, selling products that people still want and love.   I find that a stock worth buying.  And I have been. I just wish they would do a darn stock split.  Even GOOG is doing one.

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#23) On April 18, 2013 at 3:11 AM, valuemoney (99.99) wrote:

Splitting the stock does nothing. If so why has BRK.A kept going up? You don't need a split to unlock value. AAPL could back back shares with its cash hoard. THAT WOULD HELP the stock price go up WAY more than a stock split. The stock price can be 1 dollar or 10000 dollars. What the company EARNS will determind the stock price.

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#24) On April 18, 2013 at 3:12 AM, valuemoney (99.99) wrote:

buy back not back back...sorry

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#25) On April 18, 2013 at 6:20 AM, NOTvuffett (< 20) wrote:

I think a stock split would be good for AAPL.  In my business, I usually have some young men doing jobs like driving a forklift, etc.  I try to encourage them to invest for the future- but as young men, they are oftentimes starting families, so their funds are limited.  It is hard for me to recommend AAPL to them when the share price is this high.  BRK-A might be the best stock ever, but what is the price? $157,700?! lol.  

AAPL could have done a one time special dividend to take advantage of changing tax policy.  Too late for that now.  With their huge hoard of cash, they could do a massive share repurchase.  AAPL is a mature business with excellent cash flow, they could afford to pump up the dividend.  Both of these options would make the stock price soar. 

 

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