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SuperCachetes

macrumors 65816
Nov 28, 2010
1,233
1,094
Away from you
Awesome.

I can't retire early or anything crazy like that, but I take comfort in the fact that there is almost no way AAPL could drop to the price where I purchased it.
 

LagunaSol

macrumors 601
Apr 3, 2003
4,798
0
You are right, but how does it apply to Apple in this case. The way I see it, Apple is just going with the flow. It's trading at 14x earnings. I wouldn't call that overvalued.

And don't forget about the $100 billion in cash, which makes its P/E of 14 look absolutely silly. AAPL is still seriously undervalued.

Amazon's P/E is currently 138. Imagine if AAPL were trading at that valuation. We'd be talking almost $5,000 per share. :eek:

AAPL should become the first trillion-dollar company. :apple:
 

BC2009

macrumors 68020
Jul 1, 2009
2,237
1,393
Or go even higher. This will be a huge year for Apple.

Exactly my sentiments. Apple is in a fantastic position....

1) iPhone 4S to roll out in China this quarter
2) iPad 3 on the way
3) iPhone 5/6 introduction will bring a free-on-contract iPhone 4 model to all three US carriers (pushing iPhone sales into the ridiculous range)
4) Apple may even introduce a new kind of TV this year.

The biggest risk Apple is facing is on the front of intellectual property rights. If a competitor finds or acquires some essential patent that Apple infringes then Apple could face injunctions or exorbitant patent royalties on their cash-cow iOS devices. With Apple doing as well as they are they would be a prime target for lawsuits even if they had never gone on the offensive against Android.
 

rdowns

macrumors Penryn
Jul 11, 2003
27,397
12,521
Every so often, I think about buying AAPL. Every time, I don't, because it's way too much per share, and every time, I regret it later when it hits some crazy high price later on like this. I honestly think it'll keep going up, but unless they split the stock, it's going to be hard for many individual shareholders to invest.


That makes no sense. Why does it matter if you have, say $5,000 to invest whether you have 10 shares @$500 each or 100 shares $50 each? It's about the percentage gain, not the share price.
 

roasted

macrumors member
Dec 2, 2011
99
0
What goes up must come down ;)

This is that little bird in my ear whispering "No, you have a mortgage. Work for your money and don't blow it."

As much as Apple enrages me as a company with some of their questionable business practices, it really does beg the obvious question - the numbers aren't lying, so should I take the plunge? Or listen to that little bird in case I have some terrible luck the day I DO invest and suddenly Apple nosedives south?

Maybe I'll wait until I have a few bucks lying around. Right now, I'm doing what I can to keep afloat!
 

Thunderhawks

Suspended
Feb 17, 2009
4,057
2,118
I know it's just me, but who cares about whether they are worth what M$ and Google combined are or what M$ used to be long time ago, plus Exxon?

These records don't do anything except may be an "ATTABOY" award.
Don't do a thing for me.

Yes, as a shareholder you can be happy.

Hopefully they continue to launch great products.

All I want!

Gave myself the starting minus already.
 

mrxak

macrumors 68000
That makes no sense. Why does it matter if you have, say $5,000 to invest whether you have 10 shares @$500 each or 100 shares $50 each? It's about the percentage gain, not the share price.

Point is, not everyone has $5,000 to invest, or more accurately, not everyone has $5,000 to invest in a single stock, when diversification is somewhat important so they really need a lot more than $5,000 to invest.

Most AAPL holders are large financial institutions and funds, or people who got in some time ago. They are not your average investor picking up stocks at $15, or even $50. It is all about percentage, but the upfront share price does pose somewhat of a barrier for entry.
 

dejo

Moderator emeritus
Sep 2, 2004
15,982
452
The Centennial State
Most AAPL holders are large financial institutions and funds, or people who got in some time ago. They are not your average investor picking up stocks at $15, or even $50. It is all about percentage, but the upfront share price does pose somewhat of a barrier for entry.

Define "average investor"...
 

rdowns

macrumors Penryn
Jul 11, 2003
27,397
12,521
Point is, not everyone has $5,000 to invest, or more accurately, not everyone has $5,000 to invest in a single stock, when diversification is somewhat important so they really need a lot more than $5,000 to invest.

Most AAPL holders are large financial institutions and funds, or people who got in some time ago. They are not your average investor picking up stocks at $15, or even $50. It is all about percentage, but the upfront share price does pose somewhat of a barrier for entry.


If one doesn't have $5,000 or even $1,000 to invest in a single stock, then that's not the right investment vehicle for them. They should buy mutual fund(s).
 

mrxak

macrumors 68000
Define "average investor"...

Emphasis on the average, as in, average person on the street, who happens to invest in the stock market. In other words, what I already defined: people picking up stocks they can readily afford to maintain a nice balanced portfolio (not people dropping many thousands on single stocks), as opposed to billion dollar funds managed by large financial institutions.

The reason we get so many much-maligned (and rightfully so) rumors from "market analysts" is because AAPL is heavily traded by the sorts of people these market analysts are talking to. Not your granny's investment club, but people in cubicles in NYC skyscrapers.

Personally, I think a stock split would cause AAPL to go up even higher, just due to pent-up demand. A lot of people see AAPL as a good investment with solid continual growth, but the barrier to entry is, well, $500, and all the multiples of that amount to invest wisely. Not everyone has trust fund or sufficient income just lying around to trade in high-priced stocks.

If one doesn't have $5,000 or even $1,000 to invest in a single stock, then that's not the right investment vehicle for them. They should buy mutual fund(s).

Which is the point I'm making. AAPL is not for most individual investors at its current price.
 
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Nielsenius

macrumors 6502a
Apr 16, 2011
565
1
Virginia
This growth is just crazy, with no end in sight. My bet is that the "completely different" product that Steve Jobs referenced will be this new TV. I think Apple is going to revolutionize how we watch television and this will keep their growth going.
 

Iamthinking

Suspended
Jul 31, 2010
184
3
I think Apple is going to revolutionize how we watch television and this will keep their growth going.

The only thing that would revolutionize the way I watch TV (practically not at all) is if they actually put something good on it to watch! To quote an old show that was actually worth watching, "...boring people sitting around talking - that's a show!"; "...people in a kitchen- that's a show", etc.

Perhaps Apple had it right with the iPAD- at least we can read about whatever we want, supplemented by a video or two.

:)
 

lcm123

macrumors member
Jun 27, 2007
46
0
That makes no sense. Why does it matter if you have, say $5,000 to invest whether you have 10 shares @$500 each or 100 shares $50 each? It's about the percentage gain, not the share price.

Oh how I wish millions of would-be AAPL investors think like you do :rolleyes:
 

DrDomVonDoom

macrumors 6502
May 30, 2010
314
0
Fairbanks, Ak
Wirelessly posted (Mozilla/5.0 (iPhone; CPU iPhone OS 5_0_1 like Mac OS X) AppleWebKit/534.46 (KHTML, like Gecko) Version/5.1 Mobile/9A405 Safari/7534.48.3)

What I find helatious going back through the old threads when Apple was in the 200 range and I remember distinctly in the 300 range, everyone said they weren't gonna break 300. Or others saying Apple was destined to crash hard, this is their apex, it's gonna crash to nothing.

Kinda proves the point, mOst of the time. People on the Internet don't know what the hell they are talking about :/
 
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