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AAPL: Time to Split?
Posted: 08 October 2007 03:44 PM [ Ignore ] [ # 16 ]
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[quote author=“capablanca”]JToddH:  Welcome to AFB and Hooah!

I oppose a split.  I cannot offer sources to support my viewpoint, but I believe that a high stock price tends to reduce volatility.

What do you mean by volatility?

Several dollars in one day or in a few months.

I think a split would decrease it.

First of all if more people own and there are more shares outstanding it will be harder for the big guys to push the stock around.  Look how much it moves in AH with just a few shares trading.

Intel and Microsoft have billions outstanding and their stock moves a few pennies during the day.  I want aapl to be like that.

I know that it is not good for day traders who want big swings.

I think a split will bring in thousands of new aapl share owners and thereby increase the value of the stock.

I do agree that having a reasonable P/E is always best and a stock split would improve that obviously.

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Posted: 08 October 2007 11:44 PM [ Ignore ] [ # 17 ]
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Please no split.

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Posted: 09 October 2007 01:30 AM [ Ignore ] [ # 18 ]
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I see a split as being more advantageous for Apple in January, when the stock usually tanks for the first few months of the year.

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Posted: 09 October 2007 04:36 AM [ Ignore ] [ # 19 ]
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[quote author=“johnnyvn”]I see a split as being more advantageous for Apple in January, when the stock usually tanks for the first few months of the year.

Make it self-fulfilling?  From past behavior, AAPL declines sharply shortly after splitting.

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Posted: 09 October 2007 04:40 AM [ Ignore ] [ # 20 ]
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Not splitting certainly hasn’t done Berkshire Hathaway any harm.

I have never understood the reasons why $200 / share is so much more impractical to deal with than $50.

Saying that, it does seem that they do try to keep it in that lower range.

Pretty strange that splitting has any effect at all on the market price, there is no rational reason for it.

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Posted: 09 October 2007 04:49 AM [ Ignore ] [ # 21 ]
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I think on of the reasons the share price of a stock goes up after a split is the perception that if the stock split, it must be running up in price (i.e. Hey, this stock’s on fire!).  The high share price of BRK does reduce volitility but at the expense of liquidity.  This is usually not a problem for the long term holder though. 

I’m against an APPL split for reasons stated earlier.

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