“If it wasn’t such a game of expectations, Wall Street would be honoring Apple (AAPL) today and its stock would be soaring in the wake of another quarter of record sales and earnings,” Matt Nesto reports for Yahoo Finance. “However, falling short of expectations in the investment world is like stepping out of bounds by only an inch, nullifying an incredible catch in football.”
“While CEO Tim Cook described Apple’s results as “extraordinary” on the company’s conference call late yesterday, the simple fact remains that by several key measures the company grew less than analysts expected,” Nesto reports. “The disappointment is tangible, triggering a sell-off that’s taken the stock to levels not seen in a year.”
Nesto reports, “But it is also tempting, given that shares are now down 35% from their all-time high of $705 hit just four months ago. ‘I think you got to hold your nose and buy here,’ says Eric Jackson, founder of Ironfire Capital. ‘In the past, when Apple has gone on runs, it usually comes when there’s this mass negativity in the air like there is now.'”
Read more and see the video in the full article here.
[Thanks to MacDailyNews Reader “Rainy Day” for the heads up.]
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Adam Lashinsky: What Apple’s earnings really mean, and what’s that $9 billion in ‘equipment’ for? – January 24, 2013
Apple’s results aren’t the total disaster implied by the market meltdown – January 24, 2013
Apple stock drops 12%, trips short-sale circuit breaker – January 24, 2013
Apple CEO Tim Cook: ‘No technology company has ever reported these kinds of results’ – January 24, 2013
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Jim Cramer: ‘Without Steve Jobs, Apple is just another stock, it’s not magical anymore’ – January 23, 2013
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What do do now? Take a time machine back to September and collect the profits.
Tough to do. Just don’t ever make this mistake again.
And you have the exclusive formula for identifying a top. Yep, got it. It’s simple, just buy low and sell high, right?
No Zeke, it’s no exclusive formula. It’s called the stock’s all time high Zeke. $705 Zeke. I guess you didn’t realize that back in September? Jeez Zeke,I thought everybody knew that? How could you not know? And you don’t have to be a genius, nothing personal here Zeke, but when a stock reaches its all-time high you should consider taking some or all of your profit. I took all mine off the table at $700 Zeke. Obviously you did not. Obviously you have held all the way down. $250 down. I know that must hurt Zeke but you can’t blame others for your lack of common sense. Good luck.
Interesting. AAPL also hit an all time high just about every day from January to April, and again almost every day in August and most of September. So, just out of curiosity, which of those approximately 130 all time highs should I have sold? You’re saying I should have sold at one of those all time highs somewhere between roughly $425 and $705 scattered over a period of 8 or 9 months. Which one, keeping in mind that hindsight is available to you only now?
Well Zeke, since you like to brag that you bought Apple at seven dollars (riiiiiight) I guess you could’ve sold at any of them. Right? Why didn’t you sell during the last $250 drop Zeke? Why didn’t you pick up some puts during that $250 drop Zeke? I think you said you had 2000 shares? Times $250 per share, that’s a lot of money to leave on the table Zeke. Better luck next time. Good luck.
Zeke is right. If you sell at the top, you sell the day or week or month after you buy.
I’ve had my shares for literally 4,000 days. Hundreds of them were record highs.
So, you really don’t have a good answer, nor a crystal ball. You’re just a wanna be who missed the boat for the first 8 years, and now you’re jealous and love to bash the stock and people who own it. Why didn’t you buy some calls or shares when Apple was at $15? Or 30? Or $60? Or $100? Hmmmm, Mr. Know-it-all? You seriously missed the boat and if you were a real investor you wouldn’t be pissing and moaning and trying to save face now by bashing everyone and everything associated with Apple. I doubt you have any investments at all. You’re just a Fandroid looking to pretend you are a serious trader and try to rub salt in the wounds of others. “Good luck”, indeed! I don’t need any luck, thanks. I know what I’m doing.
Jealous of what Zeke? You? I started buying shares at $50 Zeke.
I haven’t owned shares in two years Zeke. I use options. And I didn’t miss the boat Zeke. I got out at $700. And obviously you did not. I’m sorry you’ve lost so much money by holding on Zeke. It must be terrible having that kick in the stomach feeling every morning when you wake up Zeke. Oh, and I bought puts all the way down from $650 Zeke. So I have made money as Apple dropped like a fucking rock too. And all my stuff is made by Apple. Good luck Zeke. Boy do you need it!
Problem is, the only starship capable of circling around the sun to take me back is in dry-dock.
So you are a speculator vs an investor? Right?
Apple’s huge profits do not match some totally stupid ANAL….yst bad guesses? And so Apple is the bad guy???
Maybe you should hav bought Amazon!!! Their stock went up , of course their P/E. is OVER 2000!,!,!, guess that would make it a real buy!!!
Just a thought
En
Sorry to all. Lately my humor has been a little lacking in humor and has too much sarcasm!
Need some cooking practice or a nice slow weekend. Actually hoping Apple stock stays low for a few more days. I would like to get a few more shares at this price.
Great weekend to all.
Just a thought.
Go cook an omelette and relax for a few days, Norm. I’m getting a bit testy too. I’m not too worried about Apple. Absolutely nothing of any consequence has changed since this time last year. But I do get tired of people who repeat the ignorant speculations of people who spend an hour a month analyzing Apple’s business and performance, when I’ve spent hours every day following Apple’s strategies and numbers. The fact is, based on fundamentals and performance, there’s no better investment than AAPL right now.
Not to even mention that now at least you get a quarterly dividend on AAPL that is about 20x greater than most savings accounts would pay if you just park your money there.
100 shares at $450 (avg) costs $45,000
$908.30 — interest if invested in a savings account @ 2%:
$1060.00 — Dividends on 100 shares
Interest you’d need to get to match that would be ~2.33%
Of course, if your average stock price is around $225, you’re essentially earning 5% interest on dividends alone.
+1
This is exactly why I will be buying more before the 14th. This adjustment today just helps me continue to aquire more.
I figure my 5 year retirement stategy is just fine.
Where are you getting 2% on a savings account? Nowadays, that would be a great rate…
Yeah, even a 5 year jumbo CD is only 1.85%.
Apple probably will pull a rabbit out of its hat and the panic stampede will be on the other direction, like greyhounds chasing a mechanical rabbit. A la Jefferson Airplane: “when you go chasing rabbits … Remember what the door mouse said; KEEP YOUR HEAD.”
I bought more.
I don’t think so. I’d wait a while and see how things work out. It’s not likely to run back to $705 anytime soon. It is very capable of dropping much lower. If you didn’t get out in September be careful about getting back in in January. There are better,safer places to put your money. Keep using and buying Apple stuff but be more prudent with your own money for investing. Good luck.
There are ALWAYS better, safer places to put your money, like a coffee can buried in the back yard. But that won’t make you any money, either.
Apple is primed for a rebound. It may not happen over the next 6 months, but I think Apple will slowly gain, a bit under the radar (as much under the radar as is possible for Apple). Apple is just too strong in sales, lack of debt, future China/Asia expansion, and cash in the bank not to do well.
Apple is NOT doing badly. If they can create such demand that even their best efforts can’t keep up with it, that’s amazing! No one else is doing this over and over again. Industry just has difficulty producing these items at the speed with which prople want to snatch them up. IT’S THE ANALYSTS WHO ARE WRONG! They create such expectations that they pass along their inability to be more accurate with blame of Apple. Look at the fundamentals and you have one of the strongest companies on the planet. If we have reached the nadir of negativity, perhaps a reversal is not far behind. I can only hope so. Otherwise, when the next dividend is in, additional shares WILL be purchased at a bargain price.
+1
It doesn’t matter whether or not the analysts are wrong if the overall sentiment and mentality is so anti-Apple that logic and truth is ignored. It’s like trying to calm a lynch mob who is thirsting for blood. It’s like trying to be rational with a drunk. It doesn’t seem likely to happen.
It does matter in that this all wreaks of manipulation on a grand scale. I truly wonder if there is a concerted (well concealed) effort to make it much too difficult for the general public to ever accept Apple’s achievements. My consistently setting the bar MUCH too high for even Apple to succeed, they have successfully created a must fail situation. Now who would ever want to do this? I leave that to you.
Should have read “By consistently”, not “My”.
Sit tight & pucker up your sphincter?
Hard to believe, 1/3 of Apple’s Market Cap of $425 billion is $137 billion of cash. This is nuts!
Tim Cook, really. Apple better be buying AAPL. A LOT!
And Tim, even Steve let the others do more of the talking when reporting and Apple always said less. Keep It Simple! You are killing us (the share holders).
$137 Billion in paper issued by a treasury or central bank.
Actually, some of it is invested.
Brace for the next upswing after apples next innovation. Apple is not your typical large company. Everyone is assuming that apple is done innovating. This is not Microsoft. Watch and see all the naysayers turn their tune once again.
The less power to the shareholders the better!
Apple has enough cash to get rid off Wall Street and it’s bookmakers.
You should buy and sell based upon hard nosed, objective homework- not what some stock guru says or your personal feelings about a particular company.
Value is not a sticker price, but the price someone is willing to pay for an item and is subject to change.
Back when Apple was going up and up and up I posted comments referring RCA in the 1920’s when common people jumped into the market and thought it would continue to climb because it “always had” and was derided on these pages as a troll, an Apple hater or someone trying to manipulate the stock price.
Apple got way ahead of itself when it climbed to over $700 and people looked at P/E ratios and said it would continue to climb and was cheap. Well they were, and are, wrong.
No stock is an island- not even Apple- and the company has plenty of question marks going forward. Nobody even knows what will happen regarding overseas cash or next year’s tax liability much less what Apple will be selling later this year.
If you bought like I did at well under $400 it’s no BFD to hold on to the stock- with the cash pile they have they won’t drop off of the cliff any time soon.
If you bought at $600+ is sucks to be you unless posting some losses can help your tax position.
In between- you make the call.
Swan dive off the nearest tall object?
Sit in a running car in closed garage?
What did you buy in at?
Maybe Apple is saving up to buy themselves. Can they use their own cash to buy themselves? Or does that make them go away and not exist? I think it’d be a paradox. Then they can sell everyone the iParadox! Then everyone and no one would own 1 or -1 of the iParadoxes (iParadoxi?). Oh look, a shiny object.
I think the pressure to buy themselves would actually cause the shares to rise, so either way, it’s a good thing that they keep accumulating this cash.
All of this is a game. It is a battle over who runs the future valuation of Apple – analysts or Apple? May it be the latter.
Nothing! The EPS on my stock is what I paid per share back in 2006! My EPS this year will be roughly the same, why sell I have not lost any money and I didn’t buy the stock just to dump it, The EPS nets me roughly $90,000 so who cares about the stupid analysts I’m retired on this stock! at 47!
How exactly do you make money on EPS…?? Unless we aren’t talking about the same thing, EPS (earnings per share) represents the ratio between a single share (compared to the total number in circulation) and earnings in a given quarter. This money goes to Apple, and the company decides what to do with it. At present, they are giving some minimal amount back to the shareholders (paying dividents of $2.65 per share). Unless you own 34,000 shares of Apple (which means you had paid almost $1.7 million for them in 2006), I can’t imagine how it would be making $90k per year for you.
$2.65/share PER QUARTER (the dividend amount can vary).
So that would really mean he’d need only about 8500 shares of AAPL to get $90K/year on dividends… He was probably referring to dividends.
You’re correct, I was wrong. This still means investment of over $400k in 2006 (which is actually not completely out of reach for someone in late 30s or early 40s). If he put “all of his eggs in one basket”, I can see comfortable retirement by now.
Back about Jan of 2007 I was friends with another investor on a board that I frequent. We both realized that a killing could be made on AAPL LEAPs. AAPL was around $85. $150 Jan 2008 CALLs could be bought for a couple dollars each. I bought 10 contracts for something like $2000. He got a second mortgage on his house and bought God knows how many contracts. By December 31, 2007 AAPL had hit $200, a profit of about $48 per share on those options. For me, $48K. For him, a profit running into 8 figures.
Wait.
How long?
I’m long since 2001 and $9.85. How much patience do you have?
Oh, but Chrissy, GM says nobody bought those shares when AAPL was under $10. I couldn’t possibly have done so, and neither could you. Just ask him.
Well technically I didn’t – that’s my split-adjusted price.
But yeah. >.<
Me too. I actually bought at $14.98 and then it split.
AND MY AXE
On a related note….
http://finance.yahoo.com/news/top-white-collar-crime-prosecutor-171753188.html
Only fools rush in at this level. I’m buying when Cook announces his departure. Nobody of sound mind is buying into the company as long as he’s the one running it.
You’re ignorant enough about this to take your own advice and hold your cash.
Tim Cook is not the problem here. They just returned a record quarter. What the problem here is is that the stock itself was subject to a run up and now a sell off. everyone likes a get rich scheme. Ain’t gonna happen. Apple will return to normal in a few days. BTW- normal is not 650/share.
Further, whatever an analyst says is subject to the “so much gas theory.” They work for their bosses whose job it is to sell securities. Guess what? They got paid for every transaction.
While Wall Street is not without blame in the manipulation business, if it wasn’t for Tim Cook they would not have succeeded to this extent. It is now in the world of conventional wisdom that Apple will never again be the company it once was. Being overtaken by Samsung is a direct result of the company taking a big risk in the fickle mobile device market. That paid off quite well but now its over. And, Tim Cook hasn’t a clue about how to deal with that reality.
Big hard on for Cook, huh?. Did he kick your puppy?.
“While Wall Street is not without blame in the manipulation business, if it wasn’t for Tim Cook they would not have succeeded to this extent.”
What you really mean is not “Tim Cook” but “Not Steve Jobs”. Anybody who is not Steve Jobs can’t possibly succeed. Has it ever occurred to you that sometimes, a change of direction, a regrouping takes a little time and extra expense? Steve came out with a revolutionary product about every 5 years. Cook has had one year so far, and he’s had to manage the transition from Steve to Tim in the process. He’s also trying to deal with a major supplier who is a thief and a backstabber, and trying to transition away from that supplier. That takes time and extra capital investments too.
And BTW, Android is NOT surpassing iPhone. There was a delay in the arrival of the iPhone 5, due probably to a few things to do with the death of Steve Jobs. During that time people waited for the new iPhone and didn’t upgrade. That gave Android a temporary leg up. Recent numbers show that iPhone is now gaining on Android. Google is in real trouble. Android is fragmented so badly that nobody wants to develop for it and even Samsung is abandoning it. Google’s $12B investment in Motorola and its patents has proved worthless. The Motorola SEP patents can’t be enforced, Motorola is losing money, and Google’s search business is declining both in volume and in price per click. Every mobile device sold, even Android devices, moves more ads to the less valuable mobile market where consumers with money to spend don’t tolerate ads on their screens, and screen real estate is at a premium. I give Google and Android about 3 years before the bubble bursts.
Hey, we’ve talked before and I know how you feel about Tim Cook as those are the only posts I have seen from you. I’m just a bit curious though, are you or were you a big Apple or Steve Jobs fan. I mean what do you like about Apple?
Road… Samsung is burying the iPhone and Tim seems helpless. There are no iMacs in the stores. Delivery time from Apple if you order on line stretches out to 4 weeks. Do you think this would have happened under Jobs? No way. Investors see the company in disarray and without a clear future. Tim talks about great products in the works but he’s lost his credibility since he has been promising great products for a long time and failed to meet expectations. So, no one believes anything sensational is going to be introduced. My conclusion is that Wall Street has analyzed Apple correctly and the result is what you see. It’s hard to miss it – only those blinded by irrational belief in something that will never become a reality under Tim Cook refuse to acknowledge what is crystal clear to those paying closer attention. When Apple’s entire executive team sells off all their stock, they confirm what we now know. Apple is going no where under Tim Cook.
Because your crystal ball told you Cook’s successor would be better than he is? Yup, that’s a strategy!
Tim Cook should now take part of the 137 Billions, to start a heavy AAPL buy-back action, till the stock jumps up. Then all the hedgefonds and other speculators, which were betting on falling quotes, would get a painful lesson: “Don’t bet against us, otherwise you will get a bloody nose, which you won’t forget soon!” So the pure speculators would jump off the AAPL options and search an other victim. It would also be an act of solidarity for loyal, private AAPL share holders, against criminal speculations.
Great idea. AAPL is a great investment, and who knows this better than Apple! It’s likely that it it’s mostly the A hole institutions and day traders that pulled out of the stock. It’d be a nice touch to reward the Apple faithful that are still in the stock (although, if one knows the company, it does not take any faith to know AAPL is a great investment).
They’re doping just that, but should increase the pace if the buy back. AAPL is cheap, and they have more cash on hand than anyone.
You don’t catch in football… It would give you a card.