[normhead]

There are still people who don't understand why. They don't understand it, yet consider themselves to be the smart ones. Sad.

If they are investors, it cost them a pile of money. Bad attitude can hurt you.

[Electric Eye]

Too spensive!...

[normhead]

Ya, that, but only if you down't value what they are selling.
Obviously a pile of people don't agree.

[reeftool]

I suppose I should kick myself for selling Apple when I did about a year ago. It was up and down and I had already more than doubled my money so I sold it and paid off some bills. I had lost money on some other stocks that went sky high and then dropped so I now tend to sell when I'm up 100%. I'm also at the age where I'm now living off the money I have invested so no real regrets. I'm not actively investing right now but if I was, I don't think you can go wrong with Apple in the long term although it's sky high at the moment and I would wait for the next dip which probably will be soon.

I bought Apple before the split when it was around $450 a share. The split was 7 - 1 which dropped the price to $64. Looking back, I should have bought more at that point but at the time, my other investments were also doing quite well. I really don't think it's an expensive stock at $200.

[normhead]

I'm sure the fact that Apple has committed 100 billion to buying back stock with money from tax reductions is pushing the value up right now. Probably a really good time to sell.

[reeftool]

Apple has been going strong for years and many of the market analysts don't understand why so the stock tends to be volatile. Rumors are always flying. Various reports form the supply chain suggest the phones aren't doing well but when the quarterly reports come in, they make money and the stock shoots back up. Right now, the rumors are already starting about Apple's chipmaker, TSMC, having to shut down because of a virus and possible delays so expect to see a price dip. I would also expect to see some profit taking but average investors really have no impact on the stock. It's the big mutual funds that have millions of shares and as it gets later in the year, they will often sell off to cover the losses of all the turds that went down.

[monochrome]

Apple P/E : Growth Rate = 1.55, below 10 year average
Apple P/E = 19.04 = .92 x S&P500
Apple Yield = 1.4%
Apple expected dividend growth rate >5 years = 11.9% / year
Apple Profit Margin = 21%
Apple up more than 25% since April Correction low

SOURCE = Bloomberg

Future earnings growth comes from peripherals like Watch and Bluetooth devices, and especially Cloud Services, much more than from devices.

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Last edited by monochrome; 08-04-2018 at 05:15 PM.

[jhaji]

The market is always right... until they decide that they weren't. And then it is right.

[reeftool]

The market is always right... until they decide that they weren't. And then it is right.

Actually, the market is schizophrenic and makes no sense whatsoever. Most of the trading in the course of a day is done by computers in blocks of thousands of shares. A stock will be sold if it goes up a few pennies and sometimes only a few seconds after it was purchased. Then there are short sellers who buy large blocks of shares on loan which can drive the price up a little and then dump it which drives the price down. Since they only have to pay the price the stock is selling for when payment is demanded, if it goes down significantly, they make money on the difference. Short sellers often start rumors to drive the stock value lower.

Most of the stories and rumors that surround Apple and analysts who are predicting the "end of the iPhone domination" are short sellers.

[jhaji]

I'm just passing on the CW.

My advice is to do your own DD & when you see a significant delta between what a stock is worth & what is currently is at & identify the underlying reasons for it, place your bets on options in the time-frame that your analysis tells the correction will take place.

Shares are a suckers game now in the age of high speed trading.