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Buying Stock in Apple

Discussion in 'Community' started by sjjordan, Jun 10, 2003.

  1. macrumors 6502

    #1
    If now a good time to buy stock in Apple? I have $4000 that I'm looking at investing somewhere, and knowing that the new 970's might be coming and the Apple store for Windows might happen, it seems like apple might really be going somewhere!

    I'm an avid mac fan and follow all the news/rumors daily. what do you guys think? Is it a good time to invest?
     
  2. macrumors 601

    zimv20

    #2
    no! two reasons

    1. "buy the rumor, sell the news." the 970 rumors have likely already pushed apple's stock higher. once it's announced, the stock will fall.

    2. diversify. go get yourself a CFP (certified financial planner) to review your life situation and goals, then make diversified investment decisions based on that. diversification means lower risk.
     
  3. pEZ
    macrumors 6502

    #3
    Whatever you do, don't stick all of that money in one place, especially Apple stock!!!

    Apple is a great company, but it's not good to have a portfolio in only tech stocks, much less only ONE stock. Don't sectorize, bad idea.

    Apple's price has already shot up because of the iTMS, this is an awful time to buy. Plus, according to Morningstar, Apple's fair market value is only about $15 - $17 (USD) - their stock is hovering a fair bit over that right now.

    Plus, as of the time of this post, Apple's stock is up around 1% today.

    Buy low, sell high.
     
  4. macrumors 6502

    #4
    But isn't the 970 just what apple needs to bump up their low powermac sales? If so, won't that make their stock go up? Is it too farfetched to think that it could be $70/share again by mid next year?
     
  5. macrumors regular

    #5
    Lot of good advice has been given above.

    However, if you can afford to lose the money, and spend a lot of time reading these and other forums and news about Apple, owning the stock right now is a fun thing to do. If all the good things work out like they are poised to do (970, Panther, iPod, 15", FCP, cheap eMac, iTunes for everyone else, and more) then the earnings should be there. Plus, despite the wisdom on these forums, I'll bet there are more things out there that we don't know about. (I own the stock).
     
  6. macrumors 68040

    applemacdude

    #6
    I just want some apple stock for the fun of it....where can i get some?...:)
     
  7. macrumors 6502

    #7
    ok. Quick question. Say, I use ameritrade, and put 4G's in apple. Can't I buy it when it's 16.50 and sell it when it's 17.50 and make about $100. Can I do that? I'm new at this, sorry.

    It sounds to me like that is a possibility. It's obviously not much money made, but over time it is.
     
  8. macrumors 601

    zimv20

    #8
    the market has already reacted to the 970 and iTunes for windows. i.e. they've already "bought the rumor."

    if the 970 doesn't come to pass, the market will sell Apple a lot. if apple announces the 970 this summer, the market will sell apple a little -- "sell the news."

    if one is going to speculate on market news, one must buy the stock _before_ wall street gets wind of it. then once the price goes up, sell the stock, well before the company in question announces anything.

    ****

    of course, the smarter thing overall is to diversify, let professionals handle the investing (i.e. fund managers) and stay in for the long haul (stock market has the lowest risk over the long term, but still can give one nice gains).
     
  9. macrumors 601

    zimv20

    #9
    you have to set up an investment account.
     
  10. macrumors 601

    zimv20

    #10
    yes, you'll make about $1/share. $4k will get you about 242 shares, so you'll make $242 minus:

    - transaction fees
    - capitol gains taxes
     
  11. macrumors 601

    zimv20

    #11
    yes, playing in the stock market can be fun. it's like gambling.

    your point about future products is well taken, but consider this: how much innovation has apple done over, say, the past 5 years? and how has the market reacted?

    the market liked the all-in-one imac. since then, the market hasn't seemed to care much.
     
  12. macrumors 6502

    #12
    But won't the market like the new windows version of iTMS? Won't that make the stock rise?
     
  13. macrumors 6502

    #13
    what if I want to sell 500 shares and no one buys them? does that happen?
     
  14. macrumors 601

    zimv20

    #14
    the market has already reacted to it.
     
  15. macrumors 601

    zimv20

    #15
    not really. any company listed on the nyse, nasdaq, etc. is plenty fluid enough.

    even for some very small companies that trade OTC (over the counter), you can find buyers. heck, even companies that are so bad they were delisted can be traded OTC.
     
  16. macrumors 6502

    #16
    thanks
     
  17. macrumors 6502

    #17
    ZimV20, is Ameritrade a good broker to use? I've heard scott Trade is pretty good too. what do you recommend?
     
  18. macrumors regular

    #18
    i plan to buy stock before WWDC as well. Go for it! i think apple has a lot more up their sleeve than macbidoobie can predict, and i doubt the market has fully reacted to the rumors, most rumor mills cant even get their stories straight.

    I think its a sure thing. Also, even if the stock doesn't go up, i certainly don't expect it to go down, so you don't stand to lose much, especially since apple's stock is pretty low anyway.

    I made a bunch of money when they released ITMS...
     
  19. macrumors 601

    zimv20

    #19
    uhhhh.... i'm not in any position to recommend online brokers. i have a CFP through whom i do nearly all my investing.

    i do have an account w/ Vanguard, but that's only to buy their mutual funds. i.e. it's not an all-purpose broker.
     
  20. macrumors 6502a

    #20
    Wow, the bubble bursts but the psychology lives on. Repeat after me -- stock prices reflect earnings. So if you expect Apple to more that quadruple its earnings based on the 970, knock yourself out.

    Apple has an incredibly loyal user based that replaces its equipment far more frequently than other PC manufacturers, but to quadruple earnings, Apple would need to sell a 970 this year to everyone who has ever owned an Apple. Right now I own two (a 17" iMac and a 12" PB.) I won't be buying a new computer for a very long time, no matter how fast the 970s turn out to be.
     
  21. macrumors 601

    zimv20

    #21
    there's the issue of the stock remaining flat, while the money could be working for you elsewhere.
     
  22. macrumors 601

    zimv20

    #22
    had you been holding the stock for a long time or did you buy it just before?

    and did you then sell the stock?
     
  23. pEZ
    macrumors 6502

    #23
    I'm currently with Ameritrade, but I'm not too happy with them just because they raised their commission and I'm a very long-term small-dollar investor. I've heard very good things about ScottTrade, but whoever you go with, make sure and read all the fine print.

    Word of warning - do NOT go with ShareBuilder or other companies that offer super low commissions like $4 or $5 a trade (USD) or less, because they only offer specific, limited stocks and funds of huge companies - you can't just buy stock in anyone you want. It's also not an instant trade, you order it, and like every Tuesday or something, they trade all of the orders as soon as the market opens. Sucks from the investors end.

    No, I don't own Apple stock, and even though I'm in the market to buy stock in a new company other than what I own stock in now, I still won't buy Apple stock any time soon. I feel that the market will not have that violent of a reaction to ANYTHING they may release at WWDC, because it doesn't affect the entire technology sector that rigorously. I don't even think releasing iTunes for Windows will even have that great of an effect on the stock because the market has already reacted to the release of the iTMS in general.

    Now, if they were to release an entirely different wild new thing that nobody had every tried before, such as the iTMS, then you'd have a big gainer on your hands. But an update to the PowerMac that affects an incredibly miniscule percentage of the world in a short period of time? I doubt that will do much. If anything, the release of the PPC 970 in a PowerMac will make IBM's stock go up.

    Apple's stock is already way above it's fair value, in my opinion, and my money is better stashed elsewhere. Remember, fees and commissions suck - never end up cutting your losses if you can help it.
     
  24. macrumors 604

    iJon

    #24
    apple stock rarely does what it did when the music store came out. and it is still gradually crawling back down. you will always hear the people on this fourm before wwdc or macworld tell you to buy apple stock because new powermacs are coming but the stock usually falls. i would buy some before when it falls, and sit on it when the windows itunes comes out, that may do something, unless someone beats them to an easy music store.

    iJon
     
  25. Moderator emeritus

    eyelikeart

    #25
    dude...I've been waiting 2 years for it to get to that point again.

    It's naive to think shares will be worth that amount in a year. All of tech suffered from the comedown, and it's never going to be the same again. :(

    If u want some advice, talk to a financial advisor (preferebly one u can trust) who can point u in directions that will guarantee u to make some money rather than take a chance on Apple stock gaining anything.
     

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