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Time to buy some AAPL?

Posted on 12/12/12 at 7:37 am
Posted by PhillyTide
The One Who Knocks
Member since Oct 2011
228 posts
Posted on 12/12/12 at 7:37 am
Posted by TheIndulger
Member since Sep 2011
19239 posts
Posted on 12/12/12 at 9:26 am to
If you buy it now, when are you supposed to sell it?
Posted by PhillyTide
The One Who Knocks
Member since Oct 2011
228 posts
Posted on 12/12/12 at 9:43 am to
quote:

If you buy it now, when are you supposed to sell it?


Selling is a hard part of investing, but I generally like to use stop losses.
Posted by TheHiddenFlask
The Welsh red light district
Member since Jul 2008
18384 posts
Posted on 12/12/12 at 9:44 am to
Technicals are dumb.

This stock is melting down in the same way it melted up. Bulls are getting destroyed and no one knows how much leverage these funds had on AAPL.

I have been a bear on the stock for way too long to claim any moral victory about it, but AAPL being the most valuable company in the US is the most absurd thing since the Nikkei at 100k. Why anyone would own AAPL over XOM, given the same valuation is completely and totally perplexing to me.
Posted by C
Houston
Member since Dec 2007
27816 posts
Posted on 12/12/12 at 3:40 pm to
quote:

Why anyone would own AAPL over XOM, given the same valuation is completely and totally perplexing to me.


I agree long term, but when a company is sitting on cash equal to +20% of their value I think it's difficult to see the price being much lower as their earnings continue to rise.
Posted by TheHiddenFlask
The Welsh red light district
Member since Jul 2008
18384 posts
Posted on 12/12/12 at 3:51 pm to
quote:

but when a company is sitting on cash equal to +20% of their value


It is a great point that 20% of thier value was cash. However, I discount that amount because I don't trust companies stockpiling cash. If you can't put it back in the ground, just start paying a dividend.

quote:

I think it's difficult to see the price being much lower as their earnings continue to rise.


That last assumption is VERY dangerous. MARGIN COMPRESSION will be the pitfall for AAPL's valuation as soon as they go 4 or 5 years without completely changing the landscape of the technological world.
Posted by Fat Bastard
coach, investor, gambler
Member since Mar 2009
72460 posts
Posted on 12/12/12 at 4:43 pm to
quote:

Technicals are dumb.



not on futures contracts
Posted by C
Houston
Member since Dec 2007
27816 posts
Posted on 12/12/12 at 5:35 pm to
That's not an assumption, that's a fact that their earnings have risen. And they have started to pay a pretty nice dividend. As much as I love XOM, they are having their own troubles finding new sources of oil.
Posted by lighter345
Member since Jan 2009
11864 posts
Posted on 12/12/12 at 5:41 pm to

This post was edited on 12/12/12 at 6:37 pm
Posted by RickAstley
Reno, Nevada
Member since May 2011
1994 posts
Posted on 12/14/12 at 1:57 pm to
You still thinking about buying AAPL? It is a little cheaper today
Posted by TheHiddenFlask
The Welsh red light district
Member since Jul 2008
18384 posts
Posted on 12/14/12 at 2:06 pm to
quote:


That's not an assumption, that's a fact that their earnings have risen. And they have started to pay a pretty nice dividend.


They have, but your use of the phrase "continue to" alluded, at least somewhat, to the future, in my eyes.
Posted by PhillyTide
The One Who Knocks
Member since Oct 2011
228 posts
Posted on 12/14/12 at 3:43 pm to
quote:

You still thinking about buying AAPL? It is a little cheaper today


Actually, I bought it under 80.

But yes, I would buy it today if I didn't already own it.
Posted by TheHiddenFlask
The Welsh red light district
Member since Jul 2008
18384 posts
Posted on 12/14/12 at 4:19 pm to
Do you guys remember the days when the largest public companies in the world didn't trade like penny stocks?

I'm a very hardened bear on AAPL, but this is truly absurd.
Posted by jso0003
Member since Jun 2009
5170 posts
Posted on 12/14/12 at 6:56 pm to
The annoying thing about trying to value AAPL is there has never BEEN a public company this large and in this volatile of a sector so you fall into the trap of deciding is this a new paradigm or a bubble waiting to burst...

Posted by gatorsimz
cafe risque
Member since Feb 2009
8135 posts
Posted on 12/14/12 at 9:46 pm to
I like AAPL and would not second guess anyone buying it right now because I think it's a good value. However, I'm somewhat bearish on stocks at the moment and too big a pansy to buy.
Posted by TheHiddenFlask
The Welsh red light district
Member since Jul 2008
18384 posts
Posted on 12/14/12 at 10:38 pm to
From a behavioral finance theory: could this be due to the impending fiscal cliff?
Posted by matthew25
Member since Jun 2012
9425 posts
Posted on 12/15/12 at 12:07 am to
I think the drop has more to do with the maps and the incessant giggling at Google.

This stock is not for me at this price. If I bought just 250 shares @$500, that would be $125,000. Way too much risk for my money.

On the other hand, a P/E of 8.8 is terrific. It could just as easily head back to 700 with the next product.
Posted by Scoop
RIP Scoop
Member since Sep 2005
44583 posts
Posted on 12/15/12 at 1:39 am to
Remember a few years ago when Apple was $250 and I told all of you that it was about to enter it's Golden Age and to buy?

I was treated like a joke even though my analysis was spot on.

Hidden Flask would have a yacht called Scoop had he listened to me riding Apple to $700.

Here is your next chance, Hidden Flask, oracle for anyone that wants to read tech trends poorly:

While disturbing, Apple's recent volatility has NOTHING to do with performance of the company. It's unnerving trying to find the bottom of this unjustified slide. If you can find it, you are going to make alot of fricking money.

Much of it is end of the year money being moved around.

Find the bottom and buy that boat.

The Maps flap was horseshite hype. Every major iOS device release has to have some manufactured major flaw. It is predictable. The exec reorganization was a great move. Jony Ive is the most valuable exec in the world and him being in charge of hardware and interface is going to be monumental.

Make fun of me like you did back in the day so I can l can copy and paste it later.

Nothing you are seeing with Apple stock now is real and starting the first of the year it will correct.


Posted by LSUsCRYSTALball
Member since Dec 2012
1709 posts
Posted on 12/15/12 at 1:40 am to
Should have bought it 5 yrs ago
Posted by TheHiddenFlask
The Welsh red light district
Member since Jul 2008
18384 posts
Posted on 12/15/12 at 7:03 am to
Your analysis was shite back then and the stock going up did not change that.

Your analysis here is just as shitty as it was back then "you're going to make a lot of money because it will go up". At the time, I stated that there were a lot of good cases that could be made for AAPL, but you just didn't make them.

As far as "missing the boat", I'm not mad about that either. My portfolio has outpaced AAPL pretty substantially.
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