Go Back   MacRumors Forums > News and Article Discussion > MacRumors.com News Discussion

Reply
 
Thread Tools Search this Thread Display Modes
Old Feb 26, 2013, 01:52 PM   #1
MacRumors
macrumors bot
 
Join Date: Apr 2001
Apple Stock Jumps on Rumors of Stock Split at Tomorrow's Shareholder Meeting




Hedge fund manager Doug Kass tweeted (via 9to5Mac) a short time ago that he is hearing rumors of an announcement regarding a stock split coming at Apple's shareholder meeting scheduled for tomorrow at the company's headquarters in Cupertino, California. The stock has reversed course since Kass's Tweet, moving from down $5 to up $5.

Many observers, such as Fortune's Philip Elmer-Dewitt, are calling into question Kass's statements, noting the sequence of events that saw him announce a large position in Apple, float the rumor of a stock split, and then announce that he was selling off shares after the stock spiked. Kass has, however, defended his Tweet, saying that the rumors were "all over the Street".

While a stock split would not add any intrinsic value to Apple's market value, some have viewed a potential split as a positive for Apple under the perception that a company is more likely to split when it is confident that the stock price will rise in the future. Observers have also argued that high stock prices for companies like Apple and Google have kept them from being added to the Dow Jones Industrial Average given the outsized impact they would have on the price-weighted index.

Apple's last stock split came in February 2005, a 2-for-1 move that brought the price of a single share down to just under $45. Apple has refrained from splitting its stock since that time, with investors seeing the share price rise to over $700 before pulling back to the current level around $450.

Article Link: Apple Stock Jumps on Rumors of Stock Split at Tomorrow's Shareholder Meeting
MacRumors is offline   0 Reply With Quote
Old Feb 26, 2013, 01:56 PM   #2
Peace
macrumors P6
 
Peace's Avatar
 
Join Date: Apr 2005
Location: Space--The ONLY Frontier
If they split it I'm buying it.
Peace is offline   5 Reply With Quote
Old Feb 26, 2013, 01:57 PM   #3
d0mth0ma5
macrumors member
 
Join Date: Jul 2008
How is that not stock price manipulation?
__________________
15.4" uMBP, 2.66 GHz, 4 GB RAM, 320 GB; iPhone 4; iPad 2.
d0mth0ma5 is offline   11 Reply With Quote
Old Feb 26, 2013, 01:59 PM   #4
TheGreenBastard
macrumors regular
 
Join Date: Nov 2012
Location: Canada
I want a piece of the apple.
__________________
Lots of Apples in my basket.
TheGreenBastard is offline   2 Reply With Quote
Old Feb 26, 2013, 01:59 PM   #5
ThatsMeRight
macrumors 68020
 
Join Date: Sep 2009
Quote:
Originally Posted by d0mth0ma5 View Post
How is that not stock price manipulation?
I have found that this is a good explanation about a stock split. It's quite interesting.
ThatsMeRight is offline   0 Reply With Quote
Old Feb 26, 2013, 02:00 PM   #6
Ralf The Dog
macrumors regular
 
Join Date: May 2008
Many investors only invest in units of 100. Apple's high price locks many investors out. If Apple's stock price is halved, I can see many small investors jumping in. Many less sophisticated investors who do not look at the P/E or PEG but only look at Apple's price will stop thinking it is overvalued.

Volatility should go up, as small investors are more likely to buy and sell over purchasing and holding for years.
Ralf The Dog is offline   2 Reply With Quote
Old Feb 26, 2013, 02:02 PM   #7
725032
Guest
 
Join Date: Aug 2012
Ive said it before and i'll say it again.

Buy 100+ or dont bother at all.

So glad i sold out when i did.

Stock splits always bring the wrong kind of investors in to the mix.
725032 is offline   1 Reply With Quote
Old Feb 26, 2013, 02:03 PM   #8
basesloaded190
macrumors 68030
 
basesloaded190's Avatar
 
Join Date: Oct 2007
Location: Wisconsin
Send a message via AIM to basesloaded190
Quote:
Originally Posted by ThatsMeRight View Post
I have found that this is a good explanation about a stock split. It's quite interesting.
That's not what he means. This guy claiming a split is happening could be just trying to get the price to shoot up and sell quick to make a lot of money.
__________________
2011 MacBook Pro 15 HR Anti-Glare, Etymotic ER-4p, iPhone 4 32GB
Twitter
basesloaded190 is offline   4 Reply With Quote
Old Feb 26, 2013, 02:03 PM   #9
deadwalrus
macrumors regular
 
Join Date: Feb 2011
Quote:
Originally Posted by Peace View Post
If they split it I'm buying it.
In that case I'll sell you 4 quarters for a dollar. All day long. LET'S DO THIS.
deadwalrus is offline   12 Reply With Quote
Old Feb 26, 2013, 02:03 PM   #10
DipDog3
macrumors 6502a
 
DipDog3's Avatar
 
Join Date: Sep 2002
 
1. Buy a lot of AAPL shares at a low price.
2. Tweet about a stock split rumor.
3. AAPL's price goes up.
4. Sell shares & PROFIT!!!!

Why didn't I think of that???
__________________

Interactive Phone - Try out the new Virtual iPhone 5s (Download Code @ RedRome.com)
DipDog3 is offline   7 Reply With Quote
Old Feb 26, 2013, 02:03 PM   #11
d0mth0ma5
macrumors member
 
Join Date: Jul 2008
Quote:
Originally Posted by ThatsMeRight View Post
I have found that this is a good explanation about a stock split. It's quite interesting.
I was referring to Kass rather than Apple.
__________________
15.4" uMBP, 2.66 GHz, 4 GB RAM, 320 GB; iPhone 4; iPad 2.
d0mth0ma5 is offline   0 Reply With Quote
Old Feb 26, 2013, 02:05 PM   #12
Peace
macrumors P6
 
Peace's Avatar
 
Join Date: Apr 2005
Location: Space--The ONLY Frontier
Quote:
Originally Posted by deadwalrus View Post
In that case I'll sell you 4 quarters for a dollar. All day long. LET'S DO THIS.
Some people can't afford $450-$700 a share as an investment.

$200-$300 is more reachable for those wanting to invest and don't have a lot of money.

The last I heard Apple was a publicly traded company.
Peace is offline   4 Reply With Quote
Old Feb 26, 2013, 02:06 PM   #13
mrhick01
macrumors regular
 
Join Date: Sep 2008
Quote:
Originally Posted by ThatsMeRight View Post
I have found that this is a good explanation about a stock split. It's quite interesting.
It is a useful explanation, but it does seem like stock manipulation nevertheless.

I am disturbed over what the stock market has seemed to become over the last 20 or so years. Admittedly, my knowledge is rudimentary, only having researched enough over the years to be "investment club"-level savvy. It seems like the overall increase of the market is less about the strength, fundamentals and future of corporations, but merely how they can puff up their numbers for short-term gain. It appears to operate more like a casino and less like an exchange that exists to support American corporate financial strength.
mrhick01 is offline   0 Reply With Quote
Old Feb 26, 2013, 02:06 PM   #14
basesloaded190
macrumors 68030
 
basesloaded190's Avatar
 
Join Date: Oct 2007
Location: Wisconsin
Send a message via AIM to basesloaded190
Quote:
Originally Posted by Peace View Post
Some people can't afford $450-$700 a share as an investment.

$200-$300 is more reachable for those wanting to invest and don't have a lot of money.

The last I heard Apple was a publicly traded company.
Not sure why/what you quoted me for
__________________
2011 MacBook Pro 15 HR Anti-Glare, Etymotic ER-4p, iPhone 4 32GB
Twitter
basesloaded190 is offline   1 Reply With Quote
Old Feb 26, 2013, 02:07 PM   #15
lunaoso
macrumors 65816
 
lunaoso's Avatar
 
Join Date: Sep 2012
Location: New England, USA
Quote:
Originally Posted by deadwalrus View Post
In that case I'll sell you 4 quarters for a dollar. All day long. LET'S DO THIS.
He would have to buy the stocks now for that analogy to make sense. If he buys them after the split, he gets them at a cheaper price.
lunaoso is offline   0 Reply With Quote
Old Feb 26, 2013, 02:07 PM   #16
Peace
macrumors P6
 
Peace's Avatar
 
Join Date: Apr 2005
Location: Space--The ONLY Frontier
Quote:
Originally Posted by basesloaded190 View Post
Not sure why/what you quoted me for
A mistake. sorry.
Peace is offline   0 Reply With Quote
Old Feb 26, 2013, 02:07 PM   #17
mrhick01
macrumors regular
 
Join Date: Sep 2008
Quote:
Originally Posted by Peace View Post
Some people can't afford $450-$700 a share as an investment.

$200-$300 is more reachable for those wanting to invest and don't have a lot of money.

The last I heard Apple was a publicly traded company.
To your first sentence, I thought that is what investment clubs and mutual funds are for, to help those without the capital to do it themselves have an opportunity to invest in higher-priced stocks that have growth potential.
mrhick01 is offline   0 Reply With Quote
Old Feb 26, 2013, 02:08 PM   #18
Brian Y
macrumors 68020
 
Join Date: Oct 2012
Erm... +$7 isn't really a "jump". Unless you measure using limp kangaroos.
Brian Y is offline   4 Reply With Quote
Old Feb 26, 2013, 02:09 PM   #19
Squilly
macrumors 68020
 
Squilly's Avatar
 
Join Date: Nov 2012
Location: PA
I'm almost all for the idea, except for the fact that it'll take longer to hit $1000, which everyone wants.
__________________
iPhone 6 16gb Space Gray Sprint
Squilly is offline   0 Reply With Quote
Old Feb 26, 2013, 02:09 PM   #20
Ralf The Dog
macrumors regular
 
Join Date: May 2008
Quote:
Originally Posted by d0mth0ma5 View Post
How is that not stock price manipulation?
Everything a company does manipulates the price of a stock. The question is, are the changes predatory or are they beneficial.

When a company announces a new product, it could be considered manipulation of stock price. It is also quite legal. When a company hires or fires members of the board of directors, it is quite often with the intent of improving stock prices.

When a company splits it's stock, it is usually because, their price is so high, many who wish to invest, can't. By splitting, they are lowering an artificial barrier to entry. This is generally a good thing.
Ralf The Dog is offline   0 Reply With Quote
Old Feb 26, 2013, 02:09 PM   #21
samcraig
macrumors G5
 
Join Date: Jun 2009
Quote:
Originally Posted by Brian Y View Post
Erm... +$7 isn't really a "jump". Unless you measure using limp kangaroos.
In addition - the market is up today. And Apple has easily had quick downturns and upturns in any given day.
samcraig is offline   0 Reply With Quote
Old Feb 26, 2013, 02:09 PM   #22
Peace
macrumors P6
 
Peace's Avatar
 
Join Date: Apr 2005
Location: Space--The ONLY Frontier
Quote:
Originally Posted by mrhick01 View Post
To your first sentence, I thought that is what investment clubs and mutual funds are for, to help those without the capital to do it themselves have an opportunity to invest in higher-priced stocks that have growth potential.
That's probably true for most people but I like to control where my money goes without using a middleman.
Peace is offline   2 Reply With Quote
Old Feb 26, 2013, 02:11 PM   #23
basesloaded190
macrumors 68030
 
basesloaded190's Avatar
 
Join Date: Oct 2007
Location: Wisconsin
Send a message via AIM to basesloaded190
Quote:
Originally Posted by mrhick01 View Post
To your first sentence, I thought that is what investment clubs and mutual funds are for, to help those without the capital to do it themselves have an opportunity to invest in higher-priced stocks that have growth potential.
You will never get the same return with a mutual fund that might hold a few shares of a stock compared to completely owning shares

----------

Quote:
Originally Posted by Ralf The Dog View Post
Everything a company does manipulates the price of a stock. The question is, are the changes predatory or are they beneficial.

When a company announces a new product, it could be considered manipulation of stock price. It is also quite legal. When a company hires or fires members of the board of directors, it is quite often with the intent of improving stock prices.

When a company splits it's stock, it is usually because, their price is so high, many who wish to invest, can't. By splitting, they are lowering an artificial barrier to entry. This is generally a good thing.
But Apples hasn't said anything about this. Right now it is just some guy telling everyone what he thinks. That's the whole point!
__________________
2011 MacBook Pro 15 HR Anti-Glare, Etymotic ER-4p, iPhone 4 32GB
Twitter
basesloaded190 is offline   2 Reply With Quote
Old Feb 26, 2013, 02:11 PM   #24
theOtherGeoff
macrumors regular
 
Join Date: Jun 2010
Quote:
Originally Posted by DipDog3 View Post
1. Buy a lot of AAPL shares at a low price.
2. Tweet about a stock split rumor.
3. AAPL's price goes up.
4. Sell shares & PROFIT!!!!

Why didn't I think of that???
Because
a)you (or your trading floor friend) don't have a lower (near zero cost) cost of trade

b)you don't feel the need to sell your inhouse pile of apple stock you thought you'd be moving in 30-60 days a month ago when the price cratered and you bought.

c) you don't have 100s of thousands clients who will pay up to $30/trade for 20-200 shares of 'the action'

d)these same clients will sell in a few weeks months if apple doesn't move.

e) therefore you had no need to drive a couple million in easy profits into your plus column before quarterly bonuses are locked in.
theOtherGeoff is offline   1 Reply With Quote
Old Feb 26, 2013, 02:12 PM   #25
m2nal
macrumors newbie
 
Join Date: May 2009
ha!

Douglas Kass ‏@DougKass
Apple continues to climb - now up by over $8. I continue to pare back as the rumor seems to be baseless based on current share authorization
m2nal is offline   0 Reply With Quote

Reply
MacRumors Forums > News and Article Discussion > MacRumors.com News Discussion

Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Similar Threads
thread Thread Starter Forum Replies Last Post
Carl Icahn Presses for Apple Shareholder Vote on Increased Stock Buyback MacRumors MacRumors.com News Discussion 360 Dec 30, 2013 01:21 PM
How fast until Apple runs out of iPhone 5C stock for pre-orders? Tonight? Tomorrow? user-name-here iPhone 15 Sep 13, 2013 11:20 AM
Judge Blocks Vote on Proposal 2 at Next Week's Apple Shareholder Meeting MacRumors MacRumors.com News Discussion 82 Mar 20, 2013 08:06 PM
Warren Buffett Says Apple Should Buy Back Stock, Ignore Einhorn's Calls for Preferred Stock MacRumors MacRumors.com News Discussion 139 Mar 7, 2013 02:10 PM
Sold Out in 1 Hr, Lol, Guess Apple's Stock Stock Price Tomorrow. Jazwire iPhone 1 Sep 14, 2012 03:26 AM

Forum Jump

All times are GMT -5. The time now is 12:48 PM.

Mac Rumors | Mac | iPhone | iPhone Game Reviews | iPhone Apps

Mobile Version | Fixed | Fluid | Fluid HD
Copyright 2002-2013, MacRumors.com, LLC