Apple Stock

[ghsDUDE]

Okay so I finally decided to invest in Apple the other day (got it at $590.54) and Bank of America (got it at $7.88).

I know Apple has been going up like crazy but I've been reading a lot of claims from Analyst saying Apple could be on the "downfall."

I'm assuming with Mountain Lion, iMac, MBP, MBA, and iPhone refresh this year the stock should continue to go up (even though it's gone down $25 in two days!)

Just wondering what other Apple investors on this forum have to say? I know I read reports saying Apple could be at $1000 at the end of 2013 but no one really knows.

So how promising is Apple as a stock? (And not from a fanboy perspective, but factual perspective.)

 

[Designer Dale]

I bought more at $425 and felt like a sucker, but now its up around 40% from that. AAPL has always been a controversial stock, but I don't know of anyone who has held it and regretted it. It's a good long investment in my opinion. The company is seen as a bit behind the curve because it is overdue for product revamps. I think chatter over Windows 8, especially the tablet version, is drawing attention now. $ 1,000 per share isn't out of sight, but it won't happen for at least a year. I expect a return to $ 650, and it will hold there until the next big breakthrough. That will be the TV thing.

I invested $4,000 in Apple at $16.50 in 1996 when the company was honestly going bankrupt. If I had held it all through several splits, I'd be sitting on $690,000. But I'm not. Not complaining, either.

Disclaimer: I'm no expert...

Dale

 

[ghsDUDE]

I bought more at $425 and felt like a sucker, but now its up around 40% from that. AAPL has always been a controversial stock, but I don't know of anyone who has held it and regretted it. It's a good long investment in my opinion. The company is seen as a bit behind the curve because it is overdue for product revamps. I think chatter over Windows 8, especially the tablet version, is drawing attention now. $ 1,000 per share isn't out of sight, but it won't happen for at least a year. I expect a return to $ 650, and it will hold there until the next big breakthrough. That will be the TV thing.

I invested $4,000 in Apple at $16.50 in 1996 when the company was honestly going bankrupt. If I had held it all through several splits, I'd be sitting on $690,000. But I'm not. Not complaining, either.

Disclaimer: I'm no expert...

Dale

Yeah I've been noticing the ups and downs of lately and my concern is getting it at the best price that I can. I get free trades up until June 29th so if it pops back up to anything over $590 next week I think I'm going to sell and wait for another "slump" like today. I have about $4,300 invested so in the 2 days I've had it I lost about $180. But who knows, we'll see.

 

[jj48]

Yeah I've been noticing the ups and downs of lately and my concern is getting it at the best price that I can. I get free trades up until June 29th so if it pops back up to anything over $590 next week I think I'm going to sell and wait for another "slump" like today. I have about $4,300 invested so in the 2 days I've had it I lost about $180. But who knows, we'll see.

What makes you think there's going to be any more slumps? Apple might announce some exciting refreshes and the stock could jump and never come back (although I don't actually think this is likely). Personally I think if you're investing in apple right now it's because you believe in the long term growth potential of the company. If you try and exploit the one day trading moves you're just as likely to get screwed as you are to make a profit. I mean are you scared that apple is going to drop through 500 in the next few months? If I was you I would hang on to that stock at 590, but that's just me.

 

[ghsDUDE]

What makes you think there's going to be any more slumps? Apple might announce some exciting refreshes and the stock could jump and never come back (although I don't actually think this is likely). Personally I think if you're investing in apple right now it's because you believe in the long term growth potential of the company. If you try and exploit the one day trading moves you're just as likely to get screwed as you are to make a profit. I mean are you scared that apple is going to drop through 500 in the next few months? If I was you I would hang on to that stock at 590, but that's just me.

Yeah I guess my initial thinking was if it jumped up $50 in one day (like it did from April 24th-April 25th) I'd sell it. Make about $70 (nothing) and wait for it to drop again because even though it hit $636 it hasn't been anywhere near that since. I guess I just want to get it for the best price I can but you're right (it can jump up) and I may never get it at $590 again.

My biggest fear is a downfall...because it's growing so damn fast.

 

[NewbieCanada]

The time to worry is when your stock is going down and other stocks are going up.

If you remember the recession in 2008, I lost 50% of my holdings that year, but the companies I had holdings in, like Apple and Baidu, had nothing wrong with their management or business. In 2009 they all came back - except RIM. So I sold it. I didn't know what was wrong with their business, but I knew I could make money with other stocks or sit still with RIM. And when it started its death spiral I could sit back and laugh.

I'm confident in Apple's short-term future. But remember, it's all about iPhones and iPads. Mountain Lion, MBA, MBP and iMac have comparatively little impact on the bottom line.

 

[ghsDUDE]

The time to worry is when your stock is going down and other stocks are going up.

If you remember the recession in 2008, I lost 50% of my holdings that year, but the companies I had holdings in, like Apple and Baidu, had nothing wrong with their management or business. In 2009 they all came back - except RIM. So I sold it. I didn't know what was wrong with their business, but I knew I could make money with other stocks or sit still with RIM. And when it started its death spiral I could sit back and laugh.

I'm confident in Apple's short-term future. But remember, it's all about iPhones and iPads. Mountain Lion, MBA, MBP and iMac have comparatively little impact on the bottom line.

I completely agree. Hopefully the next iPhone is more of an update than the 4S. If not I'm sure there will still be good sales, but Apple needs a major update!

 

[sviato]

Consider that investors know that there will be product refreshes this year and the stock price should already reflect that. What's key is whether the the product meet expectations or not. Analysts will set revenue and EPS expectations ahead of earnings reports and not meeting these expectations can result in a decline in stock price (as what happened in September 2011 iirc).

Keep in mind Apple is also planning on buying back shares which would suggest that the company may think that shares are undervalued (which could cause an increase in price) and will also be issuing a dividend (which should, theoretically, reduce the share price).

Another thing to consider would be that if Apple starts paying dividends regularly, then it'll become an income stock rather than a capital gain stock and stock price wouldn't fluctuate as much as it does now (kind of how Microsoft stock leveled off). However, this is probably unlikely for a while but could be relevant if you're considering holding the shares for a while.

 

[belvdr]

I invested $4,000 in Apple at $16.50 in 1996 when the company was honestly going bankrupt. If I had held it all through several splits, I'd be sitting on $690,000. But I'm not. Not complaining, either.

Disclaimer: I'm no expert...

Dale

It's late and I'm trying to make sense of your numbers. In 1996, you bought approximately 242.5 shares. With two splits at 2:1, you'd now have approximately 970 shares. At today's rate, say $600 for easy math, that equates to approximately $582,000. Where are you coming up with $690,000?

 

[miles01110]

Haranguing about daily ups and downs is a complete waste of time in the stock market unless you're willing to invest all of your time into it.

 

[Designer Dale]

It's late and I'm trying to make sense of your numbers. In 1996, you bought approximately 242.5 shares. With two splits at 2:1, you'd now have approximately 970 shares. At today's rate, say $600 for easy math, that equates to approximately $582,000. Where are you coming up with $690,000?

My bad. Make that 400 shares at 16 1/2, as they said back then. Still dosen't change the fact that I could be rich but ain't...

Dale

 

[Ay_Zimmy]

My great aunt has invested a lot of money into Apple, it is definitely something to look into while the digital era is just beginning. We'll be seeing tons of new products, like a redesigned macbook, maybe a TV soon, and of course the highly anticipated iPhone 5

 

[belvdr]

My bad. Make that 400 shares at 16 1/2, as they said back then. Still dosen't change the fact that I could be rich but ain't...

Dale

True. I'm no stock expert, hence my asking. I wasn't trying to put you on the spot there.

 

[Designer Dale]

True. I'm no stock expert, hence my asking. I wasn't trying to put you on the spot there.

No offense taken. Thanks for checking my math.

Dale