Is AAPL dead?

[recycled sixtie]

I have an aversion to expensive stocks such as Apple and Warren Buffett's. Why?I think it is because cheaper stocks are easier to buy as you need less $$$ and there is less downside. Tantamount to buying a used Porsche versus a new one. I don't like buying super cheap stocks either.

Of course now I have said that I expect Buffett's stock and Apple to go up.That is why I like mutual funds more even though their fees are high. The managers of mutual funds are more likely to be right than me.It is always interesting to see what the holdings are in the various mutual funds though.......

[Rich76_911s]

Originally Posted by McLovin

Well, I've been buying it, so that's pretty much the death knell for the company.

Ha yeah I have been thinking the same thing.

On relative terms versus buying the S&P Apple is looking awfully cheap.

Apple:
Forward P/E = 8.8 (Yahoo Finance)
Forecasted Growth = 10.44% (Nasdaq website)

S&P 500:
Forward P/E = 13
Forecast Growth = 6.8%
The S&P numbers came from this factset report dated 1/11/13: http://www.factset.com/websitefiles/PDFs/earningsinsight/earningsinsight_1.11.13

But anytime I start to use logic like that I get myself in trouble.

[KFC911]

Originally Posted by recycled sixtie

I have an aversion to expensive stocks such as Apple and Warren Buffett's. Why?I think it is because cheaper stocks are easier to buy as you need less $$$ and there is less downside. Tantamount to buying a used Porsche versus a new one. I don't like buying super cheap stocks either.

Of course now I have said that I expect Buffett's stock and Apple to go up.That is why I like mutual funds more even though their fees are high. The managers of mutual funds are more likely to be right than me.It is always interesting to see what the holdings are in the various mutual funds though.......

I've owned both BRKB (before the split) and AAPL (don't hold either now), and the actual stock price has nothing to do with "expensive". I used low overhead mutual funds for 20 years before deciding to become more "hands on" with my decisions about 10 years ago. It's not for everyone however...but I'm glad I did.

[Aragorn]

Just a thought, but its only been a little over a year since Steve Jobs died. Anytime you lose an iconic figurehead from a corporation there is a little bit of concern in the market and that may be why the stock has gone down.

Most people associated Apple with Steve Jobs. He brought Apple back from the brink, and some may not see much future without his guidance. Maybe if they could convince Woz to take some position at Apple the average consumer would see this as a link to the past and see someone they know with a vision for the future of the company. If you have followed Woz recently, he does have some opinions on the future of the company.

Just a thought.

[911pcars]

Investors are used to blockbuster hits with every new Apple product intro. Difficult to sustain, even for Apple.

And when it isn't God's gift or a map app goes errant (NG), they lose interest and think AAPL is a failure and sell. Well, maybe 10 pt. jumps every week are no longer the case, but I think they're still solid.

Sherwood
(got some APPL)

[techweenie]

Originally Posted by twobone

I bought some AAPL stock for my kids education accounts.

Its a pretty sizable holding and I bought at around $615.

I realize they have hit a bump in the road right now...but looking out 5-8 years, do they have the momentum to return?

The P/E and their revenue growth are still fairly good.

Are they out of really good ideas and moving into a "maturity" phase where revenue growth cools for the long run?

How are you feeling now? Did you hold the stock? If so you're at 142% plus dividends.