To BUY or NOT AAPL stock?

Discussion in 'Buying Tips and Advice' started by g0gie, Dec 12, 2005.

  1. g0gie macrumors regular

    Joined:
    Jan 31, 2005
    #1
    What do all you investors think out there? Apple is currently at 75.08. SHould i buy some stock? I wish I did a year ago but never got around to it. The trend has been very good with a large upcurve in stock price. Will this upswimg peak out? or will it continue to grow, especially with macworld and intel macs around the corner? gimme your thoughts!
     
  2. adk macrumors 68000

    adk

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    #2
    $75 is awful high for a stock. It seems to me like a split or a giant plummet will be coming. We would assume that apple will be anouncing large profits for the holiday season, but at the same time the coming macintels bring about a lot of uncertainty.
     
  3. houttbe macrumors member

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    Jul 18, 2002
    #3
    AAPL has risen more than tenfold in two years. Sorry, you missed the train.
     
  4. California macrumors 68040

    California

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    Aug 21, 2004
    #4
    Don't know but don't think it is going to go DOWN. Why would it go down? At least stabilize!
     
  5. ~Shard~ macrumors P6

    ~Shard~

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    #5
    *cough* berkshire hathaway *cough* :rolleyes:
     
  6. evildead macrumors 65816

    evildead

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    Jun 18, 2001
    Location:
    WestCost, USA
    #6
    Split

    I think another split is comming up. Apples profits keep going up and so do sales. Mac sales are way up as well. It is kind of high but I dont see it as a bad idea. I bought in at $15 a share... I only wish I had more $$ at the time to buy more shares.
     
  7. topicolo macrumors 68000

    topicolo

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    Jun 4, 2002
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    Ottawa, ON
    #7
    That's not how growth stocks like these work. These stocks skyrocket as their profits exceed expectations quarter after quarter, but after some point, the expectations become so high that the profits end up disappointing so the stock prices plummet. The only time it would stabilize is if there's no news.
     
  8. mr_matalino macrumors 6502a

    mr_matalino

    Joined:
    Oct 14, 2005
    #8
    AAPL stock has become overpriced. Not to say that it's still not worth buying but I wouldn't buy it expecting the same growth its seen in the past 2 years (but I might be wrong) :p I'm not sure how many companies can sustain a growth like this year after year after year?
     
  9. jeremy.king macrumors 603

    jeremy.king

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    #9
    To all those thinking AAPL is too high, please refer to GOOG

    Share price is only a piece of the picture, you also need to look at Market Cap, P/E and EPS when evaluating a company. If Google can have a market cap of 120+ billion, why couldn't apple. Frankly, I see room to grow myself.

    *Aside: Had a college prof (Sorry EP if you are reading this) who purchased a significant amount of APPL in 1995 and liquidated his shares when it was hitting rock bottom in '97 despite my advice to stick it out. Well, you can imagine how that story would have ended had he listened :)
     
  10. capone2 macrumors regular

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    Mar 29, 2005
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    chelsea-nyc
    #10
    well i bought

    at 74.29...a few shares. The banks are predicting 82 to 96 for the stock and i believe it, easy. Look, Going Intel, new computers, new iPods and or handheld device with a processor, new OS, PC market share will rise and then stock will skyrocket ! Im guessing past the 90 mark.

    think about it, and new retail stores.

    Not to mention that monster that is being built at GM plaza in NY the center of tourism and shopping of the country.

    Hello AAPL is on a major rise.
     
  11. capone2 macrumors regular

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    #11

    Not a good reference, Apple is a growing computer and digital music company not a search engine !!
     
  12. IJ Reilly macrumors P6

    IJ Reilly

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    #12
    First you need to ask yourself whether Google is really worth $120 billion, based on their current and prospective earnings. Their trailing PE is over 90:1 and the forward PE estimate is nearly half that much. They'd better not stumble, even a little, or the markets are going to be very very disappointed. AAPL is in a similar boat, with a trailing PE of 48 and a forward estimate of 34. This is pretty rich territory, particularly for a consumer products company. Expectations are already very high.

    FWIW, stock splits are meaningless, especially for a company like Apple that pays no dividends.
     
  13. jeremy.king macrumors 603

    jeremy.king

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    #13
    True, but for a company that IPO'd at over $100/share, it was considered overvalued, overhyped, priced too high, etc...But investors continue to drive the price up.
     
  14. nutmac macrumors 68030

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    Mar 30, 2004
    #14
    High indicates valuation and not price, as in P/E ratio, PEG, or whatever valuation strategies you deem appropriate.

    At any rate, do not ask strangers (especially in this forum) for opinions on how to invest your money. Do your own homework.
     
  15. ~Shard~ macrumors P6

    ~Shard~

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    #15
    Very good advice - you definitely have to do your own due diligence when it comes to investing. I've been investing and trading heavily for years now, and let me tell you, if you don't know what you're doing you'll get burned 100% of the time (if you know what you're doing, you only get burned 50% of the time... :p ;))
     
  16. Sun Baked macrumors G5

    Sun Baked

    Joined:
    May 19, 2002
    #16
    The Upside:

    There is still a big upside to Apple during their release of the Mactels over the next 18-24 months as Apple grows up an becomes a actual PC manufacturer.

    If you think that there are going to be a lot of Windows users buying iBooks/PowerBooks to run Windows -- hop on, you won't be alone.

    A lot of people have wanted an iBook/PowerBooks, but didn't want to "Make the Switch" -- with the MacTels, they won't have to.

    ---

    Right now, the day Apple announces the release of Mactels to the consumer ... Apple is going to be the fastest growing PC manufacturer.

    Likely number 1 in growth worldwide.

    Even if you think iPod sales will stagnate, this is huge. Look back at Dell's big years and see if you think Apple will grow.

    -&-

    The Downside:

    Don't fall in love with the growth, Apple will be hammered in the future -- even Google will be hammered at some point in the future.
     
  17. stevep macrumors 6502a

    stevep

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    Oct 13, 2004
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    UK
    #17
    Quote from Hoodless Brennan (UK online share dealing service), 12.00 GMT Thursday 15th Dec:

    "Last Night in New York shares closed mixed after broker downgrades for Apple Computer impacted on the technology sector, however, the rest of the market rallied, with the S&P hitting a 4.5-year high, amid the hope of easing interest-rates."

    May be something to do with the Intel switch and rumoured January product announcements?
     
  18. IJ Reilly macrumors P6

    IJ Reilly

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    #18
    No, quite the contrary. The analysts who downgraded pointed to the Intel switch as an opportunity to grow profits for Apple. They were simply saying that the stock has gotten ahead of itself, which is true. I said as much in the post above.
     
  19. pimentoLoaf macrumors 68000

    pimentoLoaf

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    #19
    I bought in mid-year when the stock was in the thirties; I was going to buy in sooner, but was waiting for another stock to go higher so I could sell that to buy Apple.

    If you're rich, buy in. They probably won't split like they did earlier this year: Jobs has said he wouldn't mind the stock pushing $250. :D
     
  20. Cinematographer macrumors 6502a

    Cinematographer

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    #20
    In my opinion, it's rather a reaction to the MTV/Microsoft anouncement. Some investors might see it as a threat to the iTMS. But as has been discussed in other threads, Apple doesn't have to be afraid.
     
  21. IJ Reilly macrumors P6

    IJ Reilly

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    #21
    The analysts who downgraded did not mention the MTV-Microsoft deal.
     
  22. buffalo macrumors 65816

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    Colorado Springs / Ohio
    #22
    being only a teenager i don't have much money to work with but i wish i had gotten my dad to buy some apple stock a few months ago. right now, imo, isn't a terrible time to buy. they have strong fundamentals, above the industry average in price (good sign) and their STO is with buyers in controll. right now the MACD is down so I would wait a bit untill it climbs up again.

    personally I think buying options in apple wouldn't be a bad idea. buying a $72.50 strike with January is $405 and $70 strike for Jan is $535. this way you can invest more while putting less at risk.
     
  23. VanMac macrumors 6502a

    VanMac

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    May 26, 2005
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    Rampaging Tokyo
    #23
    I think you should be visiting other forums for investing advice.

    If your looking for info on what hardware to buy....this is the place:D
     
  24. ~Shard~ macrumors P6

    ~Shard~

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    #24
    Excellent point - I think you might find some somewhat biased opinions here... ;) That being said, from what I've seen there are definitely experienced investors here such as myself whom I hope can offer some pearls of wisdom from time to time if nothing else... :cool:
     
  25. Hoef macrumors 6502a

    Hoef

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    Location:
    Houston, TX..... (keep walking)
    #25
    buy apple stock and hedge your risk by buying put options 6 months out or so :p . If the stock tanks you can always exercise your option right to sell at a higher price.
     

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