Apple Stock down?

MacFan782040 · Feb 28, 2005, 12:22 PM

It's at liek $44 compared to high 80's on friday.

Maybe a 2 for 1 split thing? I don't know much about the stock market haha... but it looks worse now.

stubeeef · Feb 28, 2005, 12:27 PM

Quote:

Originally Posted by MacFan782040

It's at liek $44 compared to high 80's on friday.

Maybe a 2 for 1 split thing? I don't know much about the stock market haha... but it looks worse now.

Yes it split.

mac-er · Feb 28, 2005, 01:46 PM

Quote:

Originally Posted by MacFan782040

It's at liek $44 compared to high 80's on friday.

Maybe a 2 for 1 split thing? I don't know much about the stock market haha... but it looks worse now.

Apple announced a 2 for 1 split several weeks ago that would take effect today.

So, if you had one share worth $90, you now have two shares worth $45.

quackattack · Feb 28, 2005, 01:54 PM

It was a really tough weekend....

wdlove · Feb 28, 2005, 02:22 PM

For Apple $45 is still a good price. With WWDC and Tiger coming, the price is bound to be on the way up again.

DavidLeblond · Feb 28, 2005, 02:45 PM

uh, my stock is now worth half but I still have the same amount of shares.

Sharebuilder better fix this.

MacFan782040 · Feb 28, 2005, 02:55 PM

Oh sweet- so wait what are the advantages of having a split stock as compared to not?

And can it ever un-split?

ravenvii · Feb 28, 2005, 03:03 PM

Quote:

Originally Posted by MacFan782040

Oh sweet- so wait what are the advantages of having a split stock as compared to not?

And can it ever un-split?

No advantage really, it's just a psychological trick. "Ooh $45 is cheap! Let's buy some shares!" and behold as the shares artificially soar.

stubeeef · Feb 28, 2005, 03:04 PM

Yes it can "un split" there have been some that have done that since 9-11. Usually very beaten down stocks that don't want to be de-listed. Others here can best explain.

A split stock often goes up now that "percieved" cost of entry is less. The effect often belies logic, but is real none the less.

jxyama · Feb 28, 2005, 03:08 PM

Quote:

Originally Posted by MacFan782040

Oh sweet- so wait what are the advantages of having a split stock as compared to not?

And can it ever un-split?

yep, it's just for the convenience...

check this out: a successful company stock that has never split... the price, changes and volumes are somewhat funny.

http://finance.yahoo.com/q?s=brka

Blackheart · Feb 28, 2005, 04:00 PM

Quote:

Originally Posted by jxyama

yep, it's just for the convenience...

check this out: a successful company stock that has never split... the price, changes and volumes are somewhat funny.

http://finance.yahoo.com/q?s=brka

Yeah, good 'ol Berkshire Hathoway run by Warren Buffett

Savage Henry · Feb 28, 2005, 04:12 PM

Quote:

Originally Posted by jxyama

yep, it's just for the convenience...

check this out: a successful company stock that has never split... the price, changes and volumes are somewhat funny.

http://finance.yahoo.com/q?s=brka

That is truly the funniest thing I've seen all day ....

I just love the days range between 90,200 and 90,500 .... Gawd bless'em for extremist trading.

Blackheart · Feb 28, 2005, 04:27 PM

Quote:

Originally Posted by Savage Henry

That is truly the funniest thing I've seen all day ....

I just love the days range between 90,200 and 90,500 .... Gawd bless'em for extremist trading.

It's funnier when that's so little a % to even matter to investors.

rock6079 · Feb 28, 2005, 04:31 PM

also a stock will generally go back to its target price within 12-18 months of a split

Chip NoVaMac · Feb 28, 2005, 04:47 PM

Quote:

Originally Posted by wdlove

For Apple $45 is still a good price. With WWDC and Tiger coming, the price is bound to be on the way up again.

Unless you have my luck. I could have bought Apple at $25 or so a year ago (or at what ever low point they had

) and i could be sitting on stock worth $5 a share. And the iPod would have been a has been in the MP3 market.

Yvan256 · Feb 28, 2005, 05:05 PM

Just bought 200 shares this morning.

At the very least, I'm hoping for a "free iBook" kind of return.

CorvusCamenarum · Feb 28, 2005, 06:42 PM

Quote:

Originally Posted by Raven VII

No advantage really, it's just a psychological trick. "Ooh $45 is cheap! Let's buy some shares!" and behold as the shares artificially soar.

While psychology is an important factor, there's also the benefit in increased liquidity for said commodity. $40 a share is easier to afford than $80, so more people can get into the market. Liquidity is [nearly] always a good thing.

For whomever asked about "un-splitting", yes there is such a thing as a reverse stock split. It works just as you would think.

therevolution · 06:58 PM

Quote:

Originally Posted by CorvusCamenarum

$40 a share is easier to afford than $80, so more people can get into the market.

That only holds true if you're planning on buying one share. And nobody should be buying one share of a stock at that price if they seriously want a return on the investment (broker commission fees would eat into it too much).

In other words, no, affordability is not the issue. It's primarily psychology.

MacAztec · Feb 28, 2005, 07:19 PM

It is great for the people that bought the stock prior to the split. I bought 40 shares at $80, so now I have 80 shares and $45/share. So, now if the stock goes up $1, I make $80, rather than the $40 I was making before.

GeorgeTheMonkey · Feb 28, 2005, 07:24 PM

Quote:

Originally Posted by DavidLeblond

uh, my stock is now worth half but I still have the same amount of shares.

Sharebuilder better fix this.

Hi,

I emailed Sharebuilder customer support earlier, when I noticed this in my account. They responded immediately, saying that they'll examine stockholders' accounts and, after they verify the purchase date of your stocks, they'll credit your account with the appropriate number of stocks by 3/02/05.

Only after realizing that I suppose the split only just took place last Friday did it occur to me that Sharebuilder is probably being inundated with similar-type inquiries, and they would've taken care of the problem shortly without me bothering them.

Chip NoVaMac · Feb 28, 2005, 07:31 PM

Quote:

Originally Posted by stubeeef

Yes it can "un split" there have been some that have done that since 9-11. Usually very beaten down stocks that don't want to be de-listed. Others here can best explain.

A split stock often goes up now that "percieved" cost of entry is less. The effect often belies logic, but is real none the less.

"logic" is in the mind of the investor. In some cases it is the mindset that certain types of stocks should never be above a certain price. Inviting others in to buy the stock at the "lower" value; but hopefully at more than you may have paid for. I know of a few holders of Wash Post stock that have been hoping for a split for some time. For they see the real value of the stock in the $60 to $70 range long term. Not the the $90 to $100 range it is in right now. Some are hoping for a split to be able to double their shares and sell at a $10 premium, others are hoping to see the same share levels as they are now.

Dave00 · Mar 1, 2005, 12:14 PM

Quote:

Originally Posted by therevolution

In other words, no, affordability is not the issue. It's primarily psychology.

You're both right.

As an extreme example, Berkshire Hathaway has deliberately let the price per share soar in order to deter small-time investors. Pretty hard for the average investor to pony up money in $90,000 increments. In the opposite direction, if you're interested in smaller-money investors, a lower share price allows for easier dollar-cost averaging.

There is also definitely some psychology involved. A price over $100 seems expensive, and less than $10 - certainly less than $1 - seems cheap (or, put another way, of little value). That's why most stocks are in the $10-100 range, and companies split (or reverse split) to keep it there.

--D

MongoTheGeek · Mar 1, 2005, 12:48 PM

It changes volatility. Traders love splits. Investors should hate them with a passion but they don't.

Stock prices are integer amounts. Even though you used to hear 23 1/8th or nowadays 23.13 per share that stocks have a limited range of trading values. The smaller the value of the stock the greater percentage change is obtained from a minimum change in price. A $10 stock goes up a penny that a one mil increase in value. a $100 stock goes up the same penny its a ten thousandth.

If you trigger a buy or a sell based on a 5% gain a $10 stock has to go through 50 different positions. Each one of those might have a sell order waiting to push the price down. The $100 stock has 500 positions waiting with sell orders.

Additionally large traders like to move big blocks of stock. Thousands of shares at a time. I doubt when Merrill or one of the big players buys a stock they do anything less than 10000. (with the possible exception of BH but noone ever sells that)

Funny story. A couple of years ago a holding company was formed to allow the average joe to earn a piece of Warren Buffets action. It was going to use its money to buy a block of BH shares and then sell pieces of each share. The Oracle of Omaha caught wind and introduced B shares at 1/100 the price of A shares and fixed the ratio. The stock shot through the roof.

MongoTheGeek · Mar 1, 2005, 12:53 PM

Quote:

Originally Posted by Dave00

As an extreme example, Berkshire Hathaway has deliberately let the price per share soar in order to deter small-time investors. Pretty hard for the average investor to pony up money in $90,000 increments. In the opposite direction, if you're interested in smaller-money investors, a lower share price allows for easier dollar-cost averaging.

Actually it was more to try and help the small (at the time then) investors. he wanted to limit speculation and volatility in the stock

Feb 28, 2005, 12:22 PM	#1
MacFan782040 macrumors 6502a Join Date: Dec 2003 Location: Poconos, PA	Apple Stock down? It's at liek $44 compared to high 80's on friday. Maybe a 2 for 1 split thing? I don't know much about the stock market haha... but it looks worse now.

Feb 28, 2005, 01:54 PM	#4
quackattack macrumors 6502a Join Date: Aug 2004 Location: Boise, ID	It was a really tough weekend.... __________________ Alum iMac 24" 2.8, 4GB RAM Powerbook 15" G4 1.5 iPhone / 5G iPod / TV "Be true to yourself, if it lands you in hell at least now you know."

Feb 28, 2005, 02:22 PM	#5
wdlove macrumors 604 Join Date: Oct 2002	For Apple $45 is still a good price. With WWDC and Tiger coming, the price is bound to be on the way up again. __________________ First MacRumors "Contributor"

Feb 28, 2005, 02:45 PM	#6
DavidLeblond macrumors 68000 Join Date: Jan 2004 Location: Raleigh, NC	uh, my stock is now worth half but I still have the same amount of shares. Sharebuilder better fix this. __________________ www.davidleblond.com Try my new iPhone game, Claustrophobia!

Feb 28, 2005, 03:04 PM	#9
stubeeef macrumors 68020 Join Date: Aug 2004	Yes it can "un split" there have been some that have done that since 9-11. Usually very beaten down stocks that don't want to be de-listed. Others here can best explain. A split stock often goes up now that "percieved" cost of entry is less. The effect often belies logic, but is real none the less. __________________ Change! Change I say yes

Feb 28, 2005, 02:55 PM	#7
MacFan782040 Thread Starter macrumors 6502a Join Date: Dec 2003 Location: Poconos, PA	Oh sweet- so wait what are the advantages of having a split stock as compared to not? And can it ever un-split?

Feb 28, 2005, 04:31 PM	#14
rock6079 macrumors 6502 Join Date: Jan 2004	also a stock will generally go back to its target price within 12-18 months of a split

Feb 28, 2005, 05:05 PM	#16
Yvan256 macrumors 68040 Join Date: Jul 2004 Location: Canada	Just bought 200 shares this morning. At the very least, I'm hoping for a "free iBook" kind of return. __________________ Mac mini Core 2 Duo 1.83 GHz/2.5 GiB, Mac mini G4 1.42 GHz/1 GiB, 12" PowerBook G4 1.5 GHz/512 MiB, iPod touch 16 GiB, silver iPod shuffle 1 GiB.

Feb 28, 2005, 07:19 PM	#19
MacAztec Banned Join Date: Oct 2001 Location: Palm Desert, CA	It is great for the people that bought the stock prior to the split. I bought 40 shares at $80, so now I have 80 shares and $45/share. So, now if the stock goes up $1, I make $80, rather than the $40 I was making before.

Mar 1, 2005, 12:48 PM	#23
MongoTheGeek macrumors 68040 Join Date: Sep 2003 Location: Its not so much where you are as when you are.	It changes volatility. Traders love splits. Investors should hate them with a passion but they don't. Stock prices are integer amounts. Even though you used to hear 23 1/8th or nowadays 23.13 per share that stocks have a limited range of trading values. The smaller the value of the stock the greater percentage change is obtained from a minimum change in price. A $10 stock goes up a penny that a one mil increase in value. a $100 stock goes up the same penny its a ten thousandth. If you trigger a buy or a sell based on a 5% gain a $10 stock has to go through 50 different positions. Each one of those might have a sell order waiting to push the price down. The $100 stock has 500 positions waiting with sell orders. Additionally large traders like to move big blocks of stock. Thousands of shares at a time. I doubt when Merrill or one of the big players buys a stock they do anything less than 10000. (with the possible exception of BH but noone ever sells that) Funny story. A couple of years ago a holding company was formed to allow the average joe to earn a piece of Warren Buffets action. It was going to use its money to buy a block of BH shares and then sell pieces of each share. The Oracle of Omaha caught wind and introduced B shares at 1/100 the price of A shares and fixed the ratio. The stock shot through the roof. __________________ The future ain't what it used to be.

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