BloggingStocks has received an interesting tip that Apple, Inc. (NASDAQ:AAPL) might soon be announcing a 2-for-1 stock split. The tip (which we consider to be solidly in the rumor category), alleges that a 2-for-1 stock split will be voted on at the next Apple board meeting, and our tipster says materials are already prepared for the vote.
This rumor certainly rings of possible truth, as Apple's stock has been rocketing up in the past few weeks. Often stocks that rise this quickly are split. Many finance advisers believe that potential investors view a sub-$100 unit of stock as more 'buy-able.' Keeping the "unit" price low by splitting the stocks as they get above the $100 mark keeps investor excitement hot.
Apple's last split was in February of 2005, a 2-for-1 split like the two previous; on June 21st, 2000, and on May 15, 1987. These splits aren't common, but they do coincide with surges in stock price. Certainly it's reasonable to believe that, with the move of the stock price from under $20 to over $80 in the past two years, Apple might be thinking about a split in the near future.
Does a split by Apple sometime soon make sense? And would it spur you to invest if you could snag one share for $40?
Will Apple be announcing a 2-for-1 stock split?
Posted Jan 10th 2007 6:33PM by Tobias Buckell
Filed under: Rumors, Internet, Apple Inc (AAPL)
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Reader Comments (Page 1 of 1)
1-10-2007 @ 7:00PM
Ira Lee Newlander said...
I think the lower price could put Apple in the category with Disney and McDonald's as stocks that Cramer thinks are good to buy for kids to give them a sense of equity participation in the company behind the products and services we love to love.
All in all, sounds like a happy boo-ya to me.
1-10-2007 @ 7:56PM
Jay said...
I would buy Apple at any price, any day under $100. This is a company which will continue to inovate and gain market share as the "dinosaurs" of the computer business dry up and sluff off like so much dry skin.
1-10-2007 @ 8:32PM
David said...
I'll take a million shares at $40 post split since the present price is $97. That'll be a $8.50 profit per share.
1-10-2007 @ 9:43PM
MFEMFE MFEMFEMF said...
like to see asplit soon.
1-10-2007 @ 9:42PM
MFEMFE MFEMFEMF said...
i want to se a split so i can buy more shares and make more money.
1-10-2007 @ 10:31PM
SoCalSir44 said...
It's a great idea to split the stock. How many of us would own shares of Google if it didn't cost nearly $500 per share? Or better yet shares of Berkshire Hathaway at nearly $100,000 per share? Keep Apple affordable and available to the masses and they will keep buying it! I see Apple hitting $120 a share within 90 days. Apple is a BUY!
1-11-2007 @ 5:20AM
Jean Vence said...
Split or not split this stock is a buy. Priced at $100 or $50 shouldn't stop you from getting on board (unless you cannot afford the $100 of course). This stock has gone up from $54 to $97 in the past couple of month and has much more potential as they will move into interesting areas (hint: TVs)
1-18-2007 @ 9:46AM
kingofallmedia said...
I just got into trading a couple of months ago -- been wanting to buy apple but the price was higher than the stocks I have been investing into == well --with the new Iphone coming out with jobs other product offerrings plus OS X coming to the masses thru the iphone -- i think alot of converts will be inevitable and the death of the microsoft "dino" -- i think apple is on the verge of a bigger marketshare of the software biz and I think in the coming years PC's will offer Apple OS as another option than vista -- not to mention the new markets Apple is leading into (tv=multimedia)
so buy buy buy... i just bought some stock yesterday-- couldn't resist .. plus with a split coming soon $$$ to make... buy now!! or you'll regret it