June 20th, 2000

[12:00 PM] Today Is The Last Day To Trade Before Apple's Stock Split by Wes George Apple has been preparing to give to shareholders of record one additional share for every share they own. Tomorrow morning Apple's stock (AAPL) officially begins trading at the split adjusted price. For instance, if AAPL closes at $100 per share today, when the markets open tomorrow AAPL will be offered for sale at $50. Today is the last day to buy AAPL before the stock splits. Of course, whether you buy AAPL before or after the split makes no difference in the value you receive. On June 21 the number of shares in circulation will double cutting AAPL's price in half. Earnings per share (EPS) will fall 50% allowing the primary comparative measure of a stock's value, the price to earnings ratio (P/E), to register the same value as before the split. You do the math. The Mac Observer Spin: Contrary to the general public's good feelings about stock splits a number of studies have been unable to find any positive correlation between the actual splits and future price gains for the stocks involved. However, stock splits are symptomatic of growth in both the stock's price and the management's forecasts of future strong demand for equity in the corporation. Both are obviously bullish indications of a business in expansion mode. Apple