18 months later .....
From the 700 high and then the 200 pt death spiral, it's been a steady rise nearing 650 (pre-split). Dow and Nasdaq are at record highs .... and AAPL had split 7 to 1. Apple bought back a ton of their stock, but I believe the split is in reaction to the new tech bubble and AAPL in the low $90s is an emotional
buy. Oh, yeah. That works for me on so many levels.
I remember having arguments with Carp (hello! where the heck are you?) where he stood firm on his belief that a stock split doubled
the value of the share. I took the position that it holds the same value, it's a ploy used to lure larger numbers of investors.
So AAPL splits 7 to 1. I decided this was the time to buy, not only because shares were more affordable but also because I expect Sept/Oct to showcase new hardware and a whole new market of "wearables" ( a watch or bracelet, who knows. Surprise me Apple!). Whatever new product they release it will define a market like they've done with smartphones and tablets. It'll be big.
So it is totally emotional to focus on just one corporation for investment, and when I talked with a broker at Scottrade (I like them and there's a local office) he tells me that Apple stock is the biggest buy requests and the split lit a huge fire under it.
Back to Carp's point of view. I'm conceding part of my disagreement to him as a win. A split stock, specially a 7 to 1 split stock, is
worth more. I mean this not a snapshot at any given moment, but in the "emotional" effect. The stock sells in greater volumes. The growth of the stock has a lot room still to attract lots of buyers, in that AAPL at 100 or 110 still seems like a good way to get on board. As a result of the split this makes it more valuable. I wonder how long I'll keep the 7 way split as a reference, but I suspect I'll ditch that mindset quickly. Specially when new product comes out. New phones, new OS and the expected wearable.
Of course there's also talk on CNBC today that the market is in a bubble and it could all crash at any moment