[Big Mac]

Unfortunately, I can't find the article online, but the magazine Fast Company has a cover story on Apple entitled "Open Season on Apple," and it's the most negative Apple article I've seen in years. In short, Apple's stock is said to be substantially overvalued, its sales growth may start to slow and cheaper competition is supposedly getting better. Some people hate seeing Apple do well.

[MacosNerd]

Originally Posted by Big Mac 

Apple article I've seen in years. In short, Apple's stock is said to be substantially overvalued, its sales growth may start to slow and cheaper competition is supposedly getting better. Some people hate seeing Apple do well.

I've read various article stating similar points. Its all normal as Apple's stock has risen dramatically and generally most companies don't or are unable to sustain such growth and high stock prices. What most do is split the stock and get the values down back to earth.

I don't think the articles I read were bashing apple as much as warning people to be wise investors.

[Big Mac]

Btw, the article also claims OS X security is largely security by obscurity and cites the iPhone's lack of internal security as proof of that claim.

[olePigeon]

Is Apple beleaguered again?

[Big Mac]

Just about it seems - that's the word that came to mind when reading that article, haha.

[subego]

Pray.

[turtle777]

Originally Posted by MacosNerd 

I've read various article stating similar points. Its all normal as Apple's stock has risen dramatically and generally most companies don't or are unable to sustain such growth and high stock prices. What most do is split the stock and get the values down back to earth.

Spoken like someone who has no clue.

How exactly will a stock split bring the values back down ?

You do know that market cap = no. outstanding stock x stock price
The market cap (value of company) doesn't change with a stock split.

-t

[MacosNerd]

I have a clue, I used a poor choice of words. A stock split will reduce the price of stock.

[turtle777]

Originally Posted by MacosNerd 

I have a clue, I used a poor choice of words. A stock split will reduce the price of stock.

What does that have to do with a company supposedly being overvalued ?

-t

[Big Mac]

Not in and of itself does a split cause a change in valuation. Usually there is a short term sell-off after a split, but that doesn't always occur.

[osiris]

Originally Posted by turtle777 

What does that have to do with a company supposedly being overvalued ?

-t

Exactly. It's the market that overvalued Apple, not Apple.

Apple is just over charging () + imo still busy ignoring the Gaming industry.

[OldManMac]

There was an article in Wired in 1997 which predicted gloom and doom for Apple. They were wrong. Michael Dell said, in the late 1990s, that Apple should just close down. He was wrong. This is nothing new, and it's always put out by people who don't have a clue.

Skroob.com » Point by Point: Wired’s 1997 Article “101 Ways to Save Apple”

[AKcrab]

Like to link this every so often in these types of threads.
The Mac Observer - Apple Death Knell Counter

[finboy]

Originally Posted by turtle777 

Spoken like someone who has no clue.

How exactly will a stock split bring the values back down ?

You do know that market cap = no. outstanding stock x stock price
The market cap (value of company) doesn't change with a stock split.

-t

The idea is to get the price back down to a "trading range" of $20-$80 per share to make it more "popular" for small investors. That's the usual explanation, at least.

I think it's bogus on its face, although Apple has a history of splitting and rising, etc. There is no reason (no research to back it up either) to suspect that splitting the stock will help its trading volume. None. Except for the pre-existing expectations of Apple's "clientele." Splitting is supposed to signal to that group that management is very positive on the future.

With a new CFO, I think it signals nothing. With any other firm, almost, it signals nothing. No new information is conveyed by a stock split. There may be a little bounce initially, and then the long-term trend might take over.

The thread-starter article was designed to get folks to sign up for this "stock magazine" that nobody's ever heard of, I'd bet.

[Chuckit]

Media Rule No. 1: Just put Apple on the cover. It doesn't matter what the hell you're saying.

[Love Calm Quiet]

Fact check: (or trend check)
Fast Company side bar (p. 86): "Apple's market share rose only 0.3% in 2007"
Sounds miniscule, huh?
Figures posted yesterday ( I don't know what Fast Company's lag time is) on MacNN give (at least for an "online" share) as reaching nearly 7%:
MacNN | Macs near 7% online market share

Fast company is fascinating... but sometimes offer "Fast Analysis" - and know how to pander with the most salacious (if not salient) data-bits going into headlines.

my 2¢

[Big Mac]

Originally Posted by finboy 

The idea is to get the price back down to a "trading range" of $20-$80 per share to make it more "popular" for small investors. That's the usual explanation, at least.

I think it's bogus on its face, although Apple has a history of splitting and rising, etc. There is no reason (no research to back it up either) to suspect that splitting the stock will help its trading volume. None.

I'm a professional trader and I used to trade Apple back when it was in the sub-$100 range. I don't trade it anymore, mostly because it's hard to accumulate a decent number of shares at such high price levels. And you can see that I'm not alone - if you look at how the stock trades now you'll see that the individual share blocks traded are much smaller than they used to be. I used to trade thousand share lots of AAPL at any one time; now usually you see only 100 (and less frequently 200) share lots. AAPL is a high volume yet illiquid stock because of the high price per share. A split would increase volume, yes, but more importantly it would make the company much more tradeable, as it used to be. That would bring traders like me back in, in addition to smaller investors. The last time Apple split, one rationale given was that the company did not like how the stock was prone to manipulation due to the high price per share. So one can definitely make a case for Apple splitting again.