From iPods to iPhones to MacBooks, Apple uses its “think different” approach to reframe computing, communication, and more.
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There is an overwhelming amount of positive sentiment in APPL stock. So much that even many of the negative comments on this site are “positive long term.”
Many people bought at 200 and many more bought it lower and rode it all the way down to the 80s, as evidenced by the overwhelming positive sentiment in the stock. AAPL is the #1 of the top ten stocks searched on the street.com week after week, it has been touted on FastMoney and Mad Money and it is one that David and Tom Gardner have chosen as one of their “No Bailout All-Stars.” Yet, I don’t understand what catalyst exists to move this stock higher. There is no chance for a short covering rally as the short ratio is only .6 as of Dec 10th. They have $27.55 per share in cash and they don’t even pay a dividend. Perhaps they are planning to buy out a formidable compeitior like RIMM– that is their only chance to succeed and they have enough cash to it.
Apple is facing cutthroat competition with RIMM and others. There are high quality substitutes that are readily available at a lower price for most of their products. The high overhead at their retail outlets has prompted them to offer their products for sale at Walmart – the investment community actually put a positive spin on this – incredulous!
I see a dog stock that has gone from $200.76 to just over $90 in a year, and is more likely to get cut in half again by the end of 2009. The chart is broken. Note the series of lower highs as the stock rallies and lower lows as it retreats; with each upturn, it increases less each time and on lower volume. This pattern will likely break to the downside; the stock faces way too much overhead resistance to move higher. Get out before the Obama inauguration.
AAPL currently has 3 CAPS stars, and the top 5 players - EverydayInvestor, dwot, Specbear, tenmiles, and goldminingXpert - have all had red thumbs on this for over a year. Your pitch is a tad late, though you are in good company.AAPL's high cash and no debt make it not only a survivor of the downturn, but also a long-term thriver. It'll always be a fanboy stock, trading at a premium. The question is whether it's worth it to pay the premium for their innovation and historically killer earnings. I'm thinking you're right that AAPL will acquire some competition, and go on to grab more market share. You're wrong about the valuation, however - AAPL (and the market) will not be halved again this year unless something bigger than 9/11 happens to make the recession extraordinarily severe.
Let's do some math. AAPL has $28/share in cash - your estimate. Stock's at $90.If it gets halved over the next year, and let's say AAPL squirrels away $2 more per share in cash, then each share will be worth $30 cash and will be trading for $45. That means that when you buy a share of AAPL stock, you're parking $30 in cash and buying a share in AAPL for $15. That would represent a P/E of something like 3.I don't think AAPL is the best compay ever to exist, but I also don't think it's so bad that it deserves to be trading at a P/E of 3. You are saying that it does. Your thoughts?
I'm with ikkyu2. You're obviously a technicals person, but you can't completely ignore valuation. At 200, this would have been a reasonable call, but I just don't see it at 90. Apple's earnings are holding up better than the vast majority of US companies, and it currently has a very reasonable valuation, both by historical and current measures. You say you don't see a catalyst to move it higher. My question would be, what catalyst do you see to move it lower?
I've ridden it up and down for ten years, all the way to $200 once and over $180 two or three times. But I bought it in 1998 (two splits ago) when the rest of the world had given up on the company and it was a big joke. I'm completely satisfied with my 13-bagger and have no intention of selling a single share.
Folio builder you couldn't have been more dead a** wrong!!!!! I have held this pup since I first played with an iPhone back in 2007. Waiting to buy their tablet for awesome living room entertainment. This stock might go over 200 by year end 09!!!!! Earnings for this upcoming quarter are going to be way over estimates. Deferred iPhone revenue is a short's worst nightmare. You were bearish @ $90 a share how do you feel now @170?
As to your comment they are selling thier products at Wal-Mart makes no sense. What corporation would not want their products retailing in Wal-Mart's massive footprint? The only prduct they offer at that store is the Iphone which makes sense given Wal-mart is a major retailer of AT&T phones and services. The Iphone has been out only since July 2007 with only one carrier and already has managed to capture a 13%+ share of the U.S. smartphone market. RIMM and other smartphone manufacturers are just that, "substitutes". No one has yet to match Apple's innovation or technology. With a company like this that has so much free cash and is always years ahead of the competition how can you possibly go wrong? Yes, I own Apple stock and am very very very long on it.
Hopefully you didn't follow your own advice and still hold AAPL and doubled your money!
Yeah, so people bought at APPL's historical high and are mad they didn't make a profit right away?
Buy high sell low? LOL.