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Discussion in 'Buying Tips and Advice' started by MattyMac, Jun 28, 2006.
Apple stock is low. Do you think it is a good time to buy it?
Tough question...it's been trending lower for the last six months. Previously there was a lot of hype to go along with some excellent growth, and the hype has died down a bit. Revenue growth should continue at a pretty good clip, but that's pretty much priced in right now. What we need is more buzz about the company...the video iPod/video iTMS thing has been rumored for so long and been so long delayed that it could end up being a big thing when it does finally hit. Tough to say though.
FWIW, I got out at the top back in January. I've thought about getting back in a couple of times since, but fortunately held back. I'm still not buying in, as I don't yet see a lot of spark to generate forward momentum. (Of course, you want to get in before that spark, but that's hard to do...I just don't see it coming yet.)
I don't think it a good time to buy in. I sold about half my shares in the high 70s, wish I had sold about 3/4. My cost basis is only $12 so I'm still long on what I own.
Theres plenty of discussion on apple stock in the Apple, Industry ... forum.
Lots of people with this or a simialr quesiton.
My basic outlook has to be that you shouldn't buy a stock just because you're a bit of a "fanboy" and we all are for the most part. Some people around here have done quite well off of it, doesn't mean its a good strategy. I think you'll find some good advice in that forum though.
I think so- I myself would like to pick up a couple shares.
I'd personally wait. It's been falling ever since it hit its 52 week high of $86.40 in mid-January.
Apple's earnings report is coming up too (July 19) and if memory serves me correctly, the stock usually falls a few points that day and maybe even the next day too.
I think it will hit $50 during the next month or so, or maybe even sooner.
A few suggesstions that I urge you and any investor in any stock to be aware of.
1. You need to look at the market as a whole before taking a position in any stock.
2. You need to look at the specific sector that stock is in and it's current performance and trend
3. Don't jump on a stock because it has dropped in price.
Now, the market has been in a downtrend for over a month and a half and has not shown any signs of getting out of that trend. Today's market action (fed announcement) could either change that or add to the sell off.
Until the market shows any sign of life or a willingness to get out of this sell mode, I'd say hold off on buying any stock, Apple included. The stock sold off 3% yesterday on higher volume compared to the prior 3 days.
If the stock can break above $60 on convincing volume and then follows through, I'd say it would be safer to take a position. I've always invested with the following principle in mind:
"I'd rather buy high and sell higher rather than buy low and sell lower".
If the market, a sector, and an individual stock is in a downtrend, it doesn't matter what stock you own. Let the markett give you clues as to the direction it is willing to take. As of right now, the market is saying that it's in a corrective and perhaps a longer term sell mode.
Regardless, good luck with your decision.
Consider Intel - their new CPU lineup is awesome and the company's reasonably valued for once.
Full disclosure: I own some Intel.
In Jan 06 when the intel launch happened it hit $80 but since then it has slowly gone down to around $55
Business world is so unpredictable
Only a couple? That wouldn't be very wise once you figure in your commission costs... Apple's share price would have to double for you just to make a measly $100! And there's no way it's doing that any time soon...
Don't think Apple stock is "low" by any means. I wouldn't buy it at half its current value.
Have you looked at the P/E ratio or are you just trying to make a statement?
Shortly before Apple stock started to fall from its historic high, someone asked very similar question. My answer then is the same as now. Do not solicit stock information from others, especially at MacRumors. Do your own homework (valuation, growth potential, etc.) and figure things out for yourself whether perceived risk over expected investment period is justifiable. I am a long-term Apple investor and I have my own opinions, but I will not share them here.
I would buy in. (I actually did buy in. Planning on keeping it as a long term holding.)
Apple makes about half it's profits off computer hardware. Intel chips + ability to run windows on mac + new macbooks + back to school + halo effect (according to marketing research, does exist) make the long term outlook on computer hardware sales very bright.
The stock has been slumping lately even with macbook shipments reportedly higher than estimated, because analysts forsee a delay in the next iPod update. Not much else really; the stock options probe wasn't bad for Apple at all, and one analyst actually upgraded the stock during its slump (around $57? i think). It's trading 25% under its 52-week high as well, so I figure it's a good bargain.
The bad? Last quarter, growth in Apple computer sales lagged behind the growth in computer shipments worldwide. Of course, it's still in transition to Intel, but you want to see Apple taking up that market share to capitalize on its high profit margin computers.
Can you read a financial statement and do a DuPont analysis? If not then I wouldn't buy any stock.