Posted on 02/11/2005 9:48:42 PM PST by HAL9000
NEW YORK (Reuters) - Apple Computer Inc., whose shares have almost quadrupled in value over the last year on the success of its iPod music player, on Friday said it set a 2-for-1 stock split, and its shares rose almost 4 percent.Shares of Apple have been on a tear as iPod sales have soared with the introduction of less-expensive versions of the music player. The stock has been the best performer in the Nasdaq 100 index and the wider S&P 500 index over the past 12 months.
Apple is also one of the most expensive stocks among the 30 largest technology companies that make up the Computer Technology Index trading on American Stock Exchange.
Apple's last stock split had been in 2000, at the height of the technology boom. Previously it had had a stock split in 1987
Splits do not change the value of stocks but tend to make a stock more attractive to small investors who are often wary about betting on high-dollar stocks, experts said. Splits may also indicate that management has confidence in continuing to grow earnings and that as a result the stock price will rise.
But the high expectations indicated by a steep share price can mean that the company has less room for disappointment. For example, shares of Internet auction company eBay have lost about 20 percent since Jan. 19, when it reported earnings below Wall Street expectations for the first time in at least three years.
Apple is trading at 39 times over its projected for earnings per share next year, compared with a price/earnings ratio of 14 for Hewlett-Packard Co., Dell Inc., the world's top personal computer provider, has a P/E of 32 and Gateway carries a P/E of 30.
But many analysts continue to favor Apple.
Pacific Crest Securities analyst Steve Lidberg said, "We continue to like the stock. The momentum behind iPod and the new Mac products continue to bode very well for the company to exceed expectations in the next several quarters."
He added, "The split makes it a little bit easier to buy for individual investors but it does not change the fundamentals."
Among the 26 analysts polled by Reuters Estimates, 15 rated Apple "buy" or "outperform," 9 rated it "hold," and only one had a "sell" rating. One analyst had no opinion.
Apple has posted better-than-expected earnings and revenues for at least the last seven quarters, and analysts raised their estimates for the current quarter after Apple raised its outlook.
Under the share split, Apple shareholders of record at the close of business on Feb. 18 will receive one additional share for every outstanding share held. Apple said trading will begin on a split-adjusted basis on Feb. 28.
Apple said there will be a proportional increase in the number of its shares authorized from 900 million to 1.8 billion.
Apple shares rose $2.85 to $81.21 at the close of trade on Nasdaq. The stock over the last year has gone from $23 to an all-time high of $81.99 per share on Wednesday.
Jump ship now folks. Avoid the rush.
How long will the trend be the friend?
The Mini-Mac has me fascinated. And the reason "WHY" is NOT because it's a cheap Mac. The Mini-mac is so underpowered, that using it as a computer would be frustrating. It's too slow to do movie editing, or graphic art stuff. With a paltry 32 Meg on the video card; it's NOT for games either.
The super cool part is this. There are going to be 2 non-compatible HDTV standards, one is the HD-DVD format, the other is the Blu-Ray. These cover Sony and MGM studios. The MiniMac has a processor that can READ BOTH FORMATS. Hmmmmm.... The MiniMac has a DVI output, for connecting directly to a HDTV; and it has an ethernet connection; with wireless support.
IMHO, the MiniMac will be a home appliance, that will allow you to download HDTV DVD's to the Mac Hard Drive from a pay-per-view website; store it on the hard drive, and play it on your TV. This will be cheaper than buying both a HD-DVD player and a Blu-Ray disk player.
When you add all this up; I think Apple has a Grand-Slam coming up. Again, IMHO; your opinions, gas mileage and tax rate may vary.
Apple's a good company that finally has finally got it right with OSX, IPod, Mac Mini(or whatever its called). They are only going to go higher
Next, Apple needs to release a wireless Bluetooth remote control for iTunes and the DVD Player.
The last two times Apple split it's stock (1987 and 2000) were near the long term highs for the stock.
Microsoft is no longer a growth company. They've begun issuing dividends.
It's also a mom and pop because it is cheap, small, quiet, and has OS-X which has so much less spyware or viruses and easier to use IMO. I expect by next Christmas they'll have it even cheaper and I'll get my parents one and couple it with a good LCD.
I ment good for the moms and pops.
"Microsoft Declares Regular Quarterly Dividend - Microsoft's Board of Directors has declared a regular quarterly dividend of $0.08 per share."
I remember when 32 meg was a lot for a hard drive.
They started issuing dividends due to changes in the tax laws.
Comparing their performance is pointless.
I think comparing Apple to Microsoft is more valid than comparing Apple to Dell, HP, Gateway, etc. Those latter companies have virtually no position in the operating system or application software markets where Apple and Microsoft have a strong presence.
lol
what's so funny, bunny?
Happy Stockholder's PING!
Apple to split stock 2 for 1 on February 18.
If you want to know about great Apple and Mac news, join the Mac Ping List... Freepmail me.
Happy Stockholder's PING!
Apple to split stock 2 for 1 on February 18.
If you want to know about great Apple and Mac news, join the Mac Ping List... Freepmail me.
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