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Technology Stocks : Apple Inc.
AAPL 277.87-0.1%12:00 PM EST
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To: Moonray who wrote (168817)4/30/2014 12:31:29 AM
From: MGV2 Recommendations

Recommended By
JP Sullivan
Stock Puppy

  Read Replies (2) of 213176
 
Retail investor psychology is the most cited and most overrated reason that the financial media and pundits have given in opining on Apple's stock split. Imv a significant reason largely has been overlooked. The 7x increase in shares and reduction in share price is going to significantly reduce the effect of the massive amount of short term options on the volatility and the incentive to manufacture volatility in Apple. Not many understand that sell-side analysts are compensated in large degree by how much volatility they influence for hedge fund and HFT clients. It is one reason why many analysts appear to be illogical through the prism of fundamental analysis and business sense. Reducing the impact of option trading in Apple will mitigate incentives to manufacture volatility by the multiple means seen surrounding Apple as Apple options have proliferated. Luca Maestri understands the point.

Apple will reach $100/share post-split in 2014 imv.
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