Is Apple’s Stock-Split Strategy a Path to the Dow?

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June 9 (Bloomberg) -- Bloomberg’s Jonathan Ferro examines Apple’s seven-for-one stock split and whether or not the move sets the stock on the path to the Dow Jones Industrial Average. Gina Martin Adams, senior U.S. equity strategist at Wells Fargo, and Bill Janeway, senior advisor at Warburg Pincus, also speak on Bloomberg Television’s “Bloomberg Surveillance.”

Cementing a transition from a growth stock to a value stock?

Jonathan ferro has been watching this closely.

Is this the next up for apple?

It removes the obstacle.

You drop below $100 and a price weighted index and they may even consider it.

But what i will say on the dow, it is not automatic.

It will not happen overnight.

It could take 12 months.

It could take 24 months.

The last time it happened was in december.

But at least it moves the obstacle.

The culture still exists, if a stock is cheaper, you're more likely to buy it.

Apparently, it does.

You need to cut your stocks to $100. steve cook wants to make it available to a larger pool of investors.

That is his line.

Still struggling on the concept that a stock needs to be a hundred dollars for you to buy a. i think there is a letter debate on this.


Did a great job and the associated press on this today.

If you go back to 1980, 34 years, you are making 25%, 26%, honey seven percent per year.

This is -- 27% per year.

1980, 30 nine cents.

That is a good number.

I did the math.

Just a little over $100. no doubt, we will be looking for that one.

Adam, answer this for me.

Why do i care that apple is in the dow?

You don't. the dow is a flawed index.

We all say the market is up 50. the market is down a hundred.

It is a flawed and decks.

-- flawed index.

You are the strategist over at wells fargo.

It doesn't matter terribly much.

It matters for the psychological reason.

The dow 30, perceived to be one of the biggest companies in the country.

Eventually, indexes -- does it create more liquidity?

There are so few that actually track the dow.

If it were the s&p 500, then we are talking about something.

If it is the russell 1000, we are talking about something that is an index that funds are attracted to.

At the the dow isn't an attractant.

Moving from a growth company to a blue-chip company, is aptly blue-chip company?

That is a very interesting question.

Steve jobs reinvented apple by inventing whole categories of new product.

It does seem that apple has kind of moved into the brand extension business, sort of becoming a consumer staple company.

Unlikely to see going forward the kind of explosive revolutionary growth that steve jobs was responsible for.

Historically, this is what i recall from hansen pnc.

The united kingdom loves world price stock.

What you have here -- at a 10th of what you have here in the u.s. a public, he has 10 times many shares outstanding as the u.s. they goes back to the 19th century when it was all retail investors.

It goes back to when, in the old days, you got a cheaper brokerage commissions are you want to be able to buy a hundred shares at a time.

That kind of historical phenomenon becomes the convention.

If i am one of those apple junkies and i am looking at the stock now, i have to decide between the sharon and i found.

Is $90 a nice feeling for me to say, yes, i like their hot xmi could buy a share.

When was the owl a school -- when was the dow less cool?

They will actually start paying dividends.

Most people don't excite $.39 to $32 a share.

It doesn't matter if it is in the dow or the s&p 500. there is a special fund.

It is called the retrospect fund.

That way we never lose any money.

We have had a 20% pop since this was announced in apple stock.

Let's not lose sight of that.

It has had a significant move already.

This text has been automatically generated. It may not be 100% accurate.


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