Comments on: Steve Jobs Wrong About Stock Buyback Impact http://www.peridotcapitalist.com/2010/02/steve-jobs-wrong-about-stock-buyback-impact.html Stock market and investing blog published by Chad Brand, Founder/President of Peridot Capital Sat, 11 Feb 2012 23:26:23 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Joe http://www.peridotcapitalist.com/2010/02/steve-jobs-wrong-about-stock-buyback-impact.html/comment-page-1#comment-1887 Joe Sat, 27 Feb 2010 22:30:20 +0000 http://www.peridotcapitalist.com/?p=1611#comment-1887 Well, you are justifying your point using the UNDERLYING THESIS of my point that stock split improves liquidity and attracts more investors. S&P 500 addition IMPROVES liquidity in the stock, attracts more money - positive feedback effect. Both of them have no fundamental bearing, but just improves liquidity and attracts bigger investor base. If AAPL price goes to $75 or $100 post 4 to 1 split, the talk of "use of cash" will automatically abate. Rather than doing absolute price movement post and pre announcement, the analysis is better served doing it relative to indices. Well, you are justifying your point using the UNDERLYING THESIS of my point that stock split improves liquidity and attracts more investors. S&P 500 addition IMPROVES liquidity in the stock, attracts more money – positive feedback effect. Both of them have no fundamental bearing, but just improves liquidity and attracts bigger investor base. If AAPL price goes to $75 or $100 post 4 to 1 split, the talk of “use of cash” will automatically abate.

Rather than doing absolute price movement post and pre announcement, the analysis is better served doing it relative to indices.

]]> By: Mitchell http://www.peridotcapitalist.com/2010/02/steve-jobs-wrong-about-stock-buyback-impact.html/comment-page-1#comment-1886 Mitchell Sat, 27 Feb 2010 20:00:47 +0000 http://www.peridotcapitalist.com/?p=1611#comment-1886 I think that it is very wrong that a company as large as apple would not at least entertain the idea of doing something with all that money, especially in a economy that is fragile to say at best. If it would help out in the smallest way then they should feel obligated to help grow the economy, that has helped them grow, in any way they can. Thats just my opinion anyway. I think that it is very wrong that a company as large as apple would not at least entertain the idea of doing something with all that money, especially in a economy that is fragile to say at best. If it would help out in the smallest way then they should feel obligated to help grow the economy, that has helped them grow, in any way they can. Thats just my opinion anyway.

]]> By: Chad Brand http://www.peridotcapitalist.com/2010/02/steve-jobs-wrong-about-stock-buyback-impact.html/comment-page-1#comment-1885 Chad Brand Sat, 27 Feb 2010 19:36:01 +0000 http://www.peridotcapitalist.com/?p=1611#comment-1885 Here are some data points to illustrate the S&P 500 addition effect. The stock actually dropped after the split took effect, but soared after index funds started buying in droves: $69.52 --> BRK.B closing price the last trading day before the split took effect on 1/21 (1/20/2010 closing price) $68.00 --> BRK.B closing price the last trading day before the S&P 500 addition was announced (1/26/2010 closing price) Here are some data points to illustrate the S&P 500 addition effect. The stock actually dropped after the split took effect, but soared after index funds started buying in droves:

$69.52 –> BRK.B closing price the last trading day before the split took effect on 1/21 (1/20/2010 closing price)

$68.00 –> BRK.B closing price the last trading day before the S&P 500 addition was announced (1/26/2010 closing price)

]]> By: Chad Brand http://www.peridotcapitalist.com/2010/02/steve-jobs-wrong-about-stock-buyback-impact.html/comment-page-1#comment-1884 Chad Brand Sat, 27 Feb 2010 19:26:41 +0000 http://www.peridotcapitalist.com/?p=1611#comment-1884 Absolutely. Berkshire is the 4th most valuable U.S. company and yet it wasn't in the S&P 500! This has been discussed in the press a lot over the last month or so. Here is one of many articles that details exactly how many billions of dollars of BRK stock index funds had to buy. Remember, S&P 500 index fund assets are more than ONE TRILLION DOLLARS. http://www.thestreet.com/story/10680675/1/berkshire-sp-500-wedding-day-arrives.html Absolutely. Berkshire is the 4th most valuable U.S. company and yet it wasn’t in the S&P 500! This has been discussed in the press a lot over the last month or so. Here is one of many articles that details exactly how many billions of dollars of BRK stock index funds had to buy. Remember, S&P 500 index fund assets are more than ONE TRILLION DOLLARS.

http://www.thestreet.com/story/10680675/1/berkshire-sp-500-wedding-day-arrives.html

]]> By: Joe http://www.peridotcapitalist.com/2010/02/steve-jobs-wrong-about-stock-buyback-impact.html/comment-page-1#comment-1883 Joe Sat, 27 Feb 2010 18:31:20 +0000 http://www.peridotcapitalist.com/?p=1611#comment-1883 Chad, WOW! So you are justifying that adding to and index can justify 10's of billions of market cap addition, but stock split wont. I dont have any further comments. Chad,
WOW! So you are justifying that adding to and index can justify 10′s of billions of market cap addition, but stock split wont. I dont have any further comments.

]]>