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Margins/Supply Constraints - Possibly. Its reported that Samsung has raised components to Apple 20%. (Samsung hits Apple with 20% price hike: report - MarketWatch) Dont know how that fits into the grand scheme of things, but it could be a catalyst. Additionally, if its decided that Apple
I wouldn't be surprised if they're already doing that. After how apple handled the a6 development, and the recent lawsuits, looking for a new supplier seems likely.
Quote:
Originally Posted by howard555
Consider a stock that costs $600 and delivers $50 earnings per share is no different than owning 10 shares of a $60 stock delivering $5 earnings per share. If this is explained to an experienced retail investor, the response often still is “yes, of course, $600 is too much to pay for a share of stock.” Apple needs to split its stock to bring in retail investors, open up the market for another set of investors to hold the stock and let their biggest fans enjoy the company growth
Retail investors are in it. And no, an experienced retail investor would not say that. One share at $500 = ten shares at $50. Ten shares at $50 = one share at $500. They're the same thing. Experienced investors recognize that.
Last edited by LordSquidworth; 11-13-2012 at 08:50 PM..
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I realize a split does not change the value of the shares you own.
10 shares at $600 is the same as 100 shares at $60. Still a aplit has it's advantages.
As mentioned by LordSquidworth stability is one of them.
I just came up with an intrinsic value of Apple of 1257 bucks a share. That is currently about a 58% discount to its intrinsic value. Per Ben Graham, he never bought stocks unless they traded at a 60% DISCOUNT to intrinsic value. When this thing reaches 60% I'll be buying some shares.
ha....CNBC now debating....Apple, Google, and Priceline.
A. Which will reach $500 first?
B. Which will reach $1000 first?
One guy says WE have a serious issue if Apple goes to 450 and Google goes to 500.
Something very serious like a depression, to get them both to those figures.
I just came up with an intrinsic value of Apple of 1257 bucks a share.
No way, $1,257 per share is waaaay high. You need to ratchet your growth expectations way back - I'd try cutting it in half. Apple got over $700 on nothing more than super high expectations of continued record growth, which simply can not be sustained forever. I've been saying this about Apple for quite a while now - never buy ANY stock at it's highs, especially when record growth rates are required every quarter just to MEET investors expectations. IMO this correction is LONG overdue, and I would set a buy target price at about $490.00.
AAPL is looking like it may go below 500, I bet all those bubble heads who bought at 700 wish they would have sold off.
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