Apple Stock down?

Discussion in 'Current Events' started by MacFan782040, Feb 28, 2005.

  1. MacFan782040 macrumors 6502a

    MacFan782040

    Joined:
    Dec 1, 2003
    Location:
    Scranton, PA
    #1
    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.
     
  2. stubeeef macrumors 68030

    stubeeef

    Joined:
    Aug 10, 2004
    #2

    Yes it split. :eek:
     
  3. mac-er macrumors 65816

    Joined:
    Apr 9, 2003
    #3
    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. :)
     
  4. quackattack macrumors 6502a

    quackattack

    Joined:
    Aug 13, 2004
    Location:
    Boise, ID
  5. wdlove macrumors P6

    wdlove

    Joined:
    Oct 20, 2002
    #5
    For Apple $45 is still a good price. With WWDC and Tiger coming, the price is bound to be on the way up again.
     
  6. DavidLeblond macrumors 68020

    DavidLeblond

    Joined:
    Jan 6, 2004
    Location:
    Raleigh, NC
    #6
    uh, my stock is now worth half but I still have the same amount of shares.

    Sharebuilder better fix this. :mad:
     
  7. MacFan782040 thread starter macrumors 6502a

    MacFan782040

    Joined:
    Dec 1, 2003
    Location:
    Scranton, PA
    #7
    Oh sweet- so wait what are the advantages of having a split stock as compared to not?

    And can it ever un-split?
     
  8. ravenvii macrumors 604

    ravenvii

    Joined:
    Mar 17, 2004
    Location:
    Melenkurion Skyweir
    #8
    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.
     
  9. stubeeef macrumors 68030

    stubeeef

    Joined:
    Aug 10, 2004
    #9
    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.
     
  10. jxyama macrumors 68040

    jxyama

    Joined:
    Apr 3, 2003
    #10
    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. :D

    http://finance.yahoo.com/q?s=brka
     
  11. Blackheart macrumors 6502a

    Blackheart

    Joined:
    Mar 13, 2004
    Location:
    Seattle
    #11
    Yeah, good 'ol Berkshire Hathoway run by Warren Buffett
     
  12. Savage Henry macrumors 65816

    Savage Henry

    Joined:
    Feb 20, 2004
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    in a one horse, two house, three pub town.
    #12
    That is truly the funniest thing I've seen all day .... :D

    I just love the days range between 90,200 and 90,500 .... Gawd bless'em for extremist trading.
     
  13. Blackheart macrumors 6502a

    Blackheart

    Joined:
    Mar 13, 2004
    Location:
    Seattle
    #13
    It's funnier when that's so little a % to even matter to investors.
     
  14. rock6079 macrumors 6502

    Joined:
    Jan 6, 2004
    #14
    also a stock will generally go back to its target price within 12-18 months of a split
     
  15. Chip NoVaMac macrumors G3

    Chip NoVaMac

    Joined:
    Dec 25, 2003
    Location:
    Northern Virginia
    #15
    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. :D
     
  16. Yvan256 macrumors 601

    Yvan256

    Joined:
    Jul 5, 2004
    Location:
    Canada
    #16
    Just bought 200 shares this morning. :D

    At the very least, I'm hoping for a "free iBook" kind of return. ;)
     
  17. CorvusCamenarum macrumors 65816

    CorvusCamenarum

    Joined:
    Dec 16, 2004
    Location:
    Birmingham, AL
    #17
    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.
     
  18. therevolution macrumors 6502

    Joined:
    May 12, 2003
    #18
    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.
     
  19. MacAztec macrumors 68040

    MacAztec

    Joined:
    Oct 28, 2001
    Location:
    San Luis Obispo, CA
    #19
    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.
     
  20. GeorgeTheMonkey macrumors member

    Joined:
    Jun 14, 2004
    #20
    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. :p :rolleyes:
     
  21. Chip NoVaMac macrumors G3

    Chip NoVaMac

    Joined:
    Dec 25, 2003
    Location:
    Northern Virginia
    #21
    "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.
     
  22. Dave00 macrumors 6502a

    Joined:
    Dec 2, 2003
    Location:
    Pittsburgh
    #22
    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
     
  23. MongoTheGeek macrumors 68040

    MongoTheGeek

    Joined:
    Sep 13, 2003
    Location:
    Its not so much where you are as when you are.
    #23
    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.
     
  24. MongoTheGeek macrumors 68040

    MongoTheGeek

    Joined:
    Sep 13, 2003
    Location:
    Its not so much where you are as when you are.
    #24
    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
     

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