This page has been archived and commenting is disabled.

Apple Stock Split Rumor Adds Over $100 Billion In Capitalization To The Market In Matter Of Minutes

Tyler Durden's picture





 

To all who trade this manipulated lunacy, you have our sympathies. A 1% market move equates to well over $100 billion in market capitalization. And this value just materialized because Apple stock will (allegedly) be $50/share instead of $200, so the quadrillions in cash on the sidelines can buy buy 4 shares where before they could buy one. Just brilliant. Goldman/JPM/33 Liberty just raped everybody for lunch. And to complete the lunacy, this just made top Bloomberg news. The absurdity is just surreal. In other news, the Greek revolution will be televized in 1 minute YouTube 360x240 mp4 clips via iPhone.

Feb. 25 (Bloomberg) -- U.S. stocks pared losses, rebounding
from the biggest drop in three weeks, as the Dollar Index
reversed its advance and Apple Inc. shares jumped.

The Standard & Poor’s 500 Index retreated 0.6 percent to
1,098.49 at 2:03 p.m. in New York after slumping as much as 1.7
percent. Apple pared its drop to 0.2 percent.

Last Updated: February 25, 2010 14:05 EST

 


- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Thu, 02/25/2010 - 15:26 | Link to Comment BlackBeard
BlackBeard's picture

soo.....did everyone just forget that board lots are like totally pre 2000?  retailers could have purchased 25 shares of AAPL when it was trading @ 200 before this news.  whoopdie doo.

Thu, 02/25/2010 - 15:27 | Link to Comment bugs_
bugs_'s picture

Its so nostalgic.  Reminds me of Naz 5k.

Very bubbleiscious move.  Must dig deeper
and see if this is just an exec options
issue or if there is an M&A issue.

Thu, 02/25/2010 - 16:33 | Link to Comment MarketTruth
MarketTruth's picture

It is indeed nostalgic. Apple rumor huh? WAIT, that is a JIM CRAMER technique of stock market manipulation. Here is the video:

www.youtube.com/watch?v=gMShFx5rThI

The IDIOTS on Wall Street fall for it again and again. Barnum was right... every minute.

Thu, 02/25/2010 - 15:33 | Link to Comment Racer
Racer's picture

In the 'old' days, a split was long term very negative for the stock!

And is this going to mark the top for AAPL!

Thu, 02/25/2010 - 15:41 | Link to Comment Anonymous
Thu, 02/25/2010 - 16:55 | Link to Comment Anonymous
Thu, 02/25/2010 - 15:29 | Link to Comment truont
truont's picture

"Yeay!  AAPL stock split!  That means I get 4 stocks instead of just 1!  I just quadrupled my stock!  Yeay!" 

They must've dug up the dot-com bubble investors out of cryo-storage, thawed em out, and told them about the AAPL stock split.  That is the only explanation for this irrational exuberance.

Thu, 02/25/2010 - 15:48 | Link to Comment Divided States ...
Divided States of America's picture

Do you mean I just made four times my money if I buy AAPL now??? Whoopi Doo, I am buying now.

Thu, 02/25/2010 - 15:35 | Link to Comment Racer
Racer's picture

What difference does a split make anyway?

You buy the same amount in money terms don't you?

 I suppose they think if you get 4 shares instead of 1 the sheeople think it means you can sell them all now for $200 each!

Or they see it as quadrupling in value because, well it was split so it must go back to the $200 level for sure

 

 

 

Thu, 02/25/2010 - 15:42 | Link to Comment Rick64
Rick64's picture

Brings in more investors that would be able to afford it. Has more room to rise.

Thu, 02/25/2010 - 16:05 | Link to Comment chunkylover42
chunkylover42's picture

the retail investor that can't afford $200 Apple shares but gobbles up the $50 Apple shares isn't buying anywhere near enough to make a difference after being "drawn in".  The dollars that matter are institutional managers, market makers, hedge funds, etc., any one of whom is moving hundreds of thousands into or out of the stock at any given moment.  They don't care if it's $200 or $50, it's a math exercise to them.  I'm not even sure they care what the valuation is, but that's a different story.

In other words, retail investors being drawn in means nothing. 

 

Thu, 02/25/2010 - 15:43 | Link to Comment Al Huxley
Al Huxley's picture

The 'thinking' goes like this - if AAPL at $200 moves $20, that's 10% but if AAPL at $50 moves $20, thats 40% - so obviously, this is a great thing, because now we'll all get 40% profits instead of 10% profits next time Apple moves $20!

Thu, 02/25/2010 - 15:59 | Link to Comment Anonymous
Thu, 02/25/2010 - 17:07 | Link to Comment Anonymous
Thu, 02/25/2010 - 20:36 | Link to Comment Anonymous
Fri, 02/26/2010 - 23:46 | Link to Comment Anonymous
Thu, 02/25/2010 - 15:32 | Link to Comment Anonymous
Thu, 02/25/2010 - 15:36 | Link to Comment Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Always on time these moves.

Thu, 02/25/2010 - 15:37 | Link to Comment Racer
Racer's picture

More like that key level quant jump started the market at the 1090 level on the S&P to get the dead battery started again!

Thu, 02/25/2010 - 15:46 | Link to Comment Bear
Bear's picture

Seems most reasonable case as jolting (vol spike) started at 1:41:00 ... and AAPL is at 200 down .20% on the day

Thu, 02/25/2010 - 15:39 | Link to Comment Rick64
Rick64's picture

Berkshire B shares, Apple, whos next GOOG?

Thu, 02/25/2010 - 15:41 | Link to Comment Anonymous
Thu, 02/25/2010 - 16:55 | Link to Comment Prof Gulliver
Prof Gulliver's picture

Desperation? Hardly. They are supremely confident in their ability to manipulate anytime they want to.

Thu, 02/25/2010 - 15:42 | Link to Comment Anonymous
Thu, 02/25/2010 - 15:42 | Link to Comment Going Down
Going Down's picture

 

"In other news..."

 

Iceland Quits Icesave Talks With U.K., Dutch, Official Says

 

www.bloomberg.com


Thu, 02/25/2010 - 15:44 | Link to Comment BlackBeard
BlackBeard's picture

let's hope those Icelanders can avoid major assrape.

Thu, 02/25/2010 - 16:10 | Link to Comment Anonymous
Thu, 02/25/2010 - 15:46 | Link to Comment Anonymous
Thu, 02/25/2010 - 15:50 | Link to Comment Racer
Racer's picture

oh and now AAPL say no stock split, but does it matter? The shorts have been gunned again!

 

And who ever started the false rumour to push the market up will not be caught or punished... because the market went UP

Now if it had gone down....... all the wrath of the law would be on them.......

Thu, 02/25/2010 - 15:50 | Link to Comment Anonymous
Thu, 02/25/2010 - 15:51 | Link to Comment Anonymous
Thu, 02/25/2010 - 15:52 | Link to Comment Anonymous
Thu, 02/25/2010 - 15:54 | Link to Comment No More Bubbles
No More Bubbles's picture

Next time I order Pizza -I'm going to demand it be discounted by asking them NOT TO SLICE IT!

After all, a pizza is worth more if it's sliced into more pieces, so it should be cheaper when it's whole.

I'm utterly stunned that anyone still thinks a SPLIT makes something more valuable.  Then again, we're dealing with a market of retards since we're about 80% higher than we'll be in the future.....

Some people just can't connect the dots.....

Thu, 02/25/2010 - 15:56 | Link to Comment Grandpa Bear Hug
Grandpa Bear Hug's picture

Where is Mary Schapiro? She and the SEC are a complete and utter joke. She and her band of incompetents pushed through a new short rule however I guess manipulating the market in an upward direction is deemed a fair and orderly market.

This is beyond insanity.

Thu, 02/25/2010 - 17:27 | Link to Comment deadhead
deadhead's picture

Grandpa....Mary is on the team with Bernanke who is buying the market as we know.

definitive proof here   http://www.archives.gov/federal-register/codification/executive-order/12631.html

Thu, 02/25/2010 - 15:59 | Link to Comment pinkboxtrader
pinkboxtrader's picture

brokers get more commissions when the stock splits

Thu, 02/25/2010 - 16:03 | Link to Comment GlassHammer
GlassHammer's picture

Its not even like watching a casino becuase its not rational enough.

Thu, 02/25/2010 - 16:29 | Link to Comment Chopshop
Chopshop's picture

maybe, just maybe the 'news' announcement happened to be at about 'the' time 'the mkt' was bout to bottom for the session  or  it was well-placed / well-timed to coincide with such, from someone with ear n eye toward mkts.

Thu, 02/25/2010 - 16:38 | Link to Comment Anonymous
Thu, 02/25/2010 - 17:34 | Link to Comment Anonymous
Thu, 02/25/2010 - 17:37 | Link to Comment dark pools of soros
dark pools of soros's picture

you are all blaming it since its just a psychological move... but wait.. THE WHOLE MARKET IS PSYCHO-LOGICAL so of course it makes sense and will attract greater fools

 

3 months from now new fools will come to the game and not even look at past charts and see it under $100 and buy it up!! UPP UPOPPPPP!!!!

Thu, 02/25/2010 - 17:55 | Link to Comment Anonymous
Thu, 02/25/2010 - 20:27 | Link to Comment Anonymous
Thu, 02/25/2010 - 18:10 | Link to Comment Blake
Blake's picture

Tyler -- LMAO.  That last sentence was one of the funniest things I've read all month

Thu, 02/25/2010 - 18:31 | Link to Comment Anonymous
Thu, 02/25/2010 - 18:42 | Link to Comment Tripps
Tripps's picture

as someone said, even a casino is more rational

 

i think the rule is this, if you don't understand why the market is doing what it is...get out to cash. would have saved you in 2008 when the volatility started in aug 2007 if you trusted your gut and didn't chase returns

Thu, 02/25/2010 - 18:43 | Link to Comment Anonymous
Thu, 02/25/2010 - 19:44 | Link to Comment MyKillK
MyKillK's picture

Apple is no stranger to splits. I bought in just before their last split (2005?) and it worked out very well. If the company knows what it's doing, a stock split could be the best way to grow market capitalization.

Thu, 02/25/2010 - 23:56 | Link to Comment bchbum
bchbum's picture

I heard google was going to split 12-1

Fri, 02/26/2010 - 02:46 | Link to Comment Anonymous
Fri, 02/26/2010 - 06:04 | Link to Comment theprofromdover
theprofromdover's picture

I think some of the posters are serious. ?

er......

You can promote greater volatility if the shares are split into 4.

It is volatility that drives the market.

That and dumb lemming stupidity.

Fri, 02/26/2010 - 08:36 | Link to Comment Anonymous
Tue, 03/09/2010 - 15:55 | Link to Comment Anonymous
Fri, 04/16/2010 - 11:12 | Link to Comment Tom123456
Tom123456's picture

ucvhost is a leading web site hosting service provider that is known to provide reliable and affordable hosting packages to customers. The company believes in providing absolute and superior control to the customer as well as complete security and flexibility through its many packages. windows vps Moreover, the company provides technical support as well as customer service 24x7, in order to enable its customers to easily upgrade their software, install it or even solve their problems. ucvhost offers the following different packages to its customers.

Thu, 01/27/2011 - 01:21 | Link to Comment paragshah12
paragshah12's picture

The Stock Split would allow many more people to become AAPL Shareholders. It would also take the joy out of Shorting this stock which is the favorite yo-yo of the Hedgefunds. I would love to have four shares at $50.50 per share for every one of my $202.00 shares.
http://www.prime-targeting.com/apple-of-our-eye/

Do NOT follow this link or you will be banned from the site!