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Technology Stocks : Apple Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Zen Dollar Round who wrote (168815)	4/24/2014 10:38:48 AM
From: Art Bechhoefer	Read Replies (1) \| Respond to of 213177

They will, however, buy it under $100. Agree. Many individual investors are in an income category where spending $2000 on an investment is about all they can do at one time. Buying 3 or 4 shares of AAPL at present prices is not as attractive as buying, say, 25 shares after the split. So the demand from individual investors will increase. Art

To: Zen Dollar Round who wrote (168815)	4/24/2014 10:40:30 AM
From: Ryan Bartholomew	Respond to of 213177

Apple needs a big new idea, not financial engineering - This article discusses the topic of the financial sleight of hand being placed over core development. You probably think I wrote it, but I didn't, I promise! I've heard from many people who say things like "I'd buy AAPL, but it's too expensive." They will, however, buy it under $100. I guess we'll find out later, after the split, who proves to be right. Unfortunately, we won't ever know, as there's no reliable way to determine how much buying/selling happened purely because of a split. But I wish we could know. Anyone you've heard say that is saying that their investment will be under ~$550 (otherwise the current price isn't too high - they could just buy 1 or more shares). You're convinced there are so many of them it will amount to real demand, and if so, do you think having throngs of tiny investors (under $550 each) is beneficial? Apple has been disconnected from AAPL for quite some time, even if using only PE ratio as a measure. The AAPL isn't disconnected... it's merely reflecting that some people agree with my thesis (outlined in a lengthy post earlier today, if interested) either wholly, or to a lesser degree. In other words, that estimates for profit growth are too optimistic. Remember, a PE ratio is only a snapshot - it doesn't consider where the E variable heads in future years. If you think there's a chance that earnings will decline soon, then even a single-digit PE can look expensive. If you think Apple's E is going to keep climbing year after year, buy like mad!