This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Why Apple Needs a Stock Split

4. All companies have a window of opportunity in which they are responsible to seize the moment. As the tech sector progresses into the cloud computing era via mobile Internet devices, Apple finds itself in the sweet spot a once in a generation opportunity.

IPhone unit sales surged 113% last quarter. The iPad is crushing any sign of competition and appears well on its way to capturing iPod-esque market share penetration in the new frontier of tablets. The App Store has redefined mobile computing. If management feels that its stock is underperforming because of non-fundamental variables, such as hedge fund manipulation, than perhaps it is time to do something about it.

Apple conducted a 2:1 split in June 2000 and another 2:1 split in February 2005. On Wall Street perception is reality and Apple management needs to do something to alter the status quo. It is unlikely that Jobs would approve a dividend or stock buyback because it would mean having to drain his cash cushion, but a stock split? Why not? Nobody is happy with the underperformance of this stock relative to earnings growth.

I have to imagine that this is a hot topic of discussion at Apple headquarters considering the large number of shares owned by insiders. The time has come to wake this stock up. If you're an Apple shareholder and you agree that Apple performance would be better after a 10:1 split to $35 a share, go ahead and let the Apple investor relations team know by clicking here Management will listen.
At the time of publication, Schwarz was long Apple.

Jason Schwarz is an option strategist for Lone Peak Asset Management in Westlake Village, Calif. He is also the founder of the popular investment newsletter available at Over the past few years, Schwarz has gained acclaim for his market calls on the price of oil, Bank of America, Apple, E*Trade, and his precision investing in S&P 500 option LEAPS. His book, The Alpha Hunter, is set to be released by McGraw Hill in December 2009.
3 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $95.01 1.05%
AMZN $488.10 -2.79%
BIDU $145.05 -0.20%
GOOG $682.74 -0.12%
NFLX $83.32 0.64%


Chart of I:DJI
DOW 16,027.05 -177.92 -1.10%
S&P 500 1,853.44 -26.61 -1.42%
NASDAQ 4,283.7530 -79.3910 -1.82%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs