“It’s happened again: The stock of the most beloved company in the world, Apple (AAPL), has dropped more than a third off its highs. Of course this means that no one likes it anymore,” Henry Blodget writes for SIlicon Alley Insider.
“Well, wake up, people! If you really think that Apple’s going to take over the world, this is the time to love the stock, not when it claws its way back toward $200 again,” Blodget writes.
“Apple’s stock just isn’t that expensive anymore. At $127, the stock is trading at about 25X trailing earnings (that’s trailing, not analysts’ hallucinations about what is going to happen over the next few years),” Blodget writes.
Full article here.
Right! But I sold some AAPL to pay off credit card debt.
What I should have done was to sit on the debt and wait for the government bailout!
Forget responsibility!
Well this thread is getting hijacked by political discussion rather early.
Dollar Cost Averaging. Getting ready to make ninth buy.
Well, I am heavily invested in Apple stock. If you take the value of the KNOW percentages of markets that Apple dominates and the more than 21 billion that Apple has in the bank, you could get the REAL value of AAPL. And as Apple goes from 5% to 10% to 20% of the worlds PC market, you see AAPL’s REAL value.
Yeah,
How about measuring shares by clicks on website or cars owned by employees. Take a look at the P/E and stop telling me that AAPL is a bargain. And don’t waste my time with might might happen in the future. Steve Jobs steps down tomorrow, AAPL will see 29 USD as a price, not 290 USD.
Yep, wish the government would have taken my old house off my hands during this housing implosion.
Coulda used that extra $30K, but hey those Wall street types do need help. How else are they gonna buy their next $5,000 suit with matching cuff links.
Let the damn banks die. They made the bad loans, let them suffer some.
I’m completely with you, MaLvado! The only true losers in this market/economy shake out are the suckers who paid upfront for their equities, their houses, their cars, their clothes, their vacations, and their lives in general.
Where’s the bailout for The Responsibles?
That said, more AAPL for me!
*currently deciding how many shares to buy*
You know what would be helpful? Is if even *one* of these stories about stock prices ever had any kind of information on how one actually goes about buying stock.
I have several times over the last year thought of buying stock, but just being an average, non-suit wearing, non-business, working person with no agents, financial advisors, or friendly bank, I have no idea how to do it. I have googled it for long periods of time, but all you find is a lot of advertisements as usual.
The other related factor is teh Internets are all under the impression that the USA is the whole world and so 90% of the business links in particular are useless to anyone from another country like me.
The guy up there complaining about p/e ratio is clueless and should be investing in baseball cards instead. Apple has the most attractive p/e among all the tech growth stocks right now. Where do these guys come from?
@Just Wondering
Do you make all your decisions based upon P/E?
Go to an Apple Store…look at its product line…look at its continuous growth…look at the market share room for growth…look at all the competitive crap they have to cut through each and every time and how they continuously make everyone else look sick. Then do your P/E check and buy MSFT and get your measly dividend on their three year growth downturn.
But don’t dare look at their product line.
@Jeremy
Try out etrade.com. You have to do some initial setup to transfer money from your bank to etrade, but after that you can go about transferring money and purchasing stock easily enough. I’ve used that both times AAPL dropped low enough to look like a good buy for me, and I had never purchased stock before.
Just Wondering runs a hedge fund.
“If Fannie Mae and Freddie Mac continue to grow, continue to have the low capital that they have, continue to engage in the dynamic hedging of their portfolios, which they need to do for interest rate risk aversion, they potentially create ever-growing potential systemic risk down the road, we are placing the total financial system of the future at a substantial risk.”
– 2005 Alan Greenspan
For the first time in history, a serious Fannie and Freddie reform bill S.190, was passed by the Senate Banking Committee. The bill gave a regulator power to crack down, and would have required the companies to eliminate their investments in risky assets.
– January 26, 2005
But the bill didn’t become law, for a simple reason: Democrats opposed it on a party-line vote in the committee.
Check who was one of the three cosponsors.
Who ya want running the country now?
@Think
Sure. Give me four more years of the idiots who ran the country into the ground. You, remember them, don’t you? The Republicans?
not one for censorship. but today I am in a crabby mood and can’t stand reading stupid political comments.
as for apple stock, good time to buy, but I will probably wait until after the election, until then there is just too much uncertainty.
@Radius…
You are as inept in your political thinking as you are naive in your ability to not see that Mac users are elitist.
If you do bother to trace the roots of the housing and credit crisis you will find that many of the lax credit policies that have led to this collapse can be traced right to the door of the Clinton Administration.
Which does not absolve the Republicans for responsibility in any way, shape, form, or fashion. The Republicans did nothing to correct the situation and in fact allowed the disaster in the making to continue while increasing government spending like drunken liberals, AND lowering taxes, AND starting a costly war.
But to drop this only in the laps of Republicans is naive at best.
@Thelonius
I am a Mac user and a PC user and am not an elitist, therefore the statement that all Mac users are elitists is incorrect.
The Republicans cannot pass the buck to the Democrats for this huge mess that, as you said, they could have done something about but did not. No. The Republicans were in power and the country is doing very poorly as a result. That speaks for itself.
@Radius
Who can pass laws in Washington? Congress.
Who has the majority in congress? Democrats.
Who promised lower gas prices if they got elected? Democrats.
They got the majority they wanted and we have seen gas skyrocket to oh, about $5 a gallon.
The president cannot make laws. He can only stamp his approval or veto them.
1/25 rate means 4% of income above investments per year. If there would be no speculations on shares, then even 127$ price is too high.
Any bank offers more profits than 4% and such percentage is just about inflation anyway so it does not make sense to buy shares other than in hopes that those will raise significantly — thus those could be sold with great margin.
Without speculations, fair price for Apple’s share is about $30 or something — it would make 16% per year income. However, of course, this is only theoretical since there are always speculations.
Good afternoon, morons.
This is just a friendly reminder that Democrats and Republicans both do the same thing: screw the taxpayer.
So you can choose between: 1) the Democrats screwing you by lowering taxes for middle america (now) with a big bill later for all the out-of-control spending; or 2) the Republicans screwing you by giving a lower tax rate for Companies, so you keep your job, and then you get the big bill later for all the out-of-control spending.
What’s the difference really?
Aside from about 100 million American voters, who the fuck else cares about petty American party politics?
Personally, being angry at the government bailing out wealthy people who made terrible decisions should be and IS a bipartisan issue.
Actually, it should be a multipartisan condemnation of a Congress that has been asleep at the switch for over a decade (and that’s very generous). Both major parties have let down the American people. If you disagree and think either the Democrat or Republican party have been putting the best interests of the country over their own power grabs, you haven’t been paying attention.
in FY 09 apple will have 30 bn on the bank and earnings of $7 a share. and that’s an even conservative guess. makes an PE ex cash of 14. seems cheap to me. but i have all i got in it anyway otherwise i would buy some more.
@Thisson:
Are you blind, stupid or both???
Even Apple can’t weather a post real estate bubble recession
But the PC repair business is BOOMING!!!
Why buy new when a few sticks of RAM, a gut and install, and $40 a year for anti-malware, gives you another 5 years of wonderful Windows XP!!
I LOVE WINDOWS!! On other people’s computers that is.
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I want the government to bail me out for the full cost of my October AAPL 160 calls….. If they don’t then I’ll just have to be a more responsible investor and stop taking chances, something I’m sure nobody wants.
Randian,
I agree. Where is the bailout for the consumers? This plan will primarily help the management of these companies that were mismanaged in the first place. Where is the waiver for my $130,000 in med school loans. At least I’m doing more in this world than making myself filthy rich (actually, I’m quite poor – the bills are killing me; no one goes into medicine these days to get rich – because you won’t! Be a lawyer or CEO!)
Liberals. Conservatives. Democrats. Republicans.
What’s the goddamn difference anymore?
Tax and spend, or borrow and spend. Some choice.
Take your pick this November. And watch as the fleecing of the American people continues…
Upturn or downturn, it doesn’t affect me either way. I don’t own a house. I rent. Let the sucker who owns it take the fall. I’ll just find another to move into. I buy used cars and pay cash, so no bills there. I’m a mechanic, so I can work on my own cars. No bills there. I belong to a credit union, and have saved $10 a day for the past nine years. I don’t read newspapers, or watch TV, with the exception of the occasional astronomy or tropical fish DVD. I don’t give a damn what people think of what clothes I wear, what car I drive, where I live, or pretty much anything else. If I cared what the broke losers with their status symbols thought, I’d be broke too.
But I’m not.
To sum this up… too bad, so sad if you bought into the “American Dream”. Because it’s a lie created so that wage slaves could impress people that they would otherwise never talk to or even like, for that matter.
Hell, even my Macs are old (four G3s and a processor- upgraded G4)!
Hot Damn – Politics, History
And who to “blame” for Current Situation
Ok, let’s go back, way back
Remember a guy named Ike ?
(and not talking about the recent Hurricane)
He said it:
Beware the Military Industrial Complex
He could have added:
Beware of Greedy Manipulating Monopolies, their FUD, and the empty Harvest we will reap from their Sowing – taking over America and The World
Ike must have seen Microsoft coming down Main Street
BC
Malvado…
Take one of those 0% credit card deals, transfer the debt, and pay it off at no interest over a year.
I renovated my kitchen doing that. I charged materials, fixtures and paid contractors with credit card and those credit card checks… PLUS it was a frequent flyer mile account. THEN, I transferred the balances to a 0% card. Paid it off in about a year.
Hey, USE the system. It works.
so sad if you bought into the “American Dream”
Depends which American Dream you’re referring to.
The Old Dream was about hard work, intelligence, and perseverance. You could have it all, after careful planning and cultivation. It was truly a long-term investment.
The New Dream was (until about last week) about having it all, right now, through easy debt. Want the McMansion, a couple luxury cars, foreign vacations, the best of everything? No problem, sign right here!
Now the party’s over, and we’re about to bail out this debtor class of people. Yes, it’s SUCKS to be one of The Responsibles who will be paying for this. 🙁
As for AAPL, this is a hard call. Apple Inc. will survive, no question. Overall market conditions are the factor here.
it takes sixty votes in the senate to overide a presidents veto. So unless dens get sixty votes in the senate you can blame dema all you want. Itvdirsnt make it so. Republicans just need to get 1 Lieberman and vp dick to pass their crap on us. The dens have slowed down the train wreck that was a republican congress and president until 06. Stop blaming Democrats douches. Bushes henchmen are MORE to blame and hopefully the Democrats will sweep into power in January and put adults and not a guy who wears adult diapers in charge.
The bail out plan not being enacted? It’s the perfect excuse/cause that will make stocks a lot cheaper.
Only a few privileged will make money based on fore-knowledge.
This US communist president is sooo great. Hope that you choose next time the right wing alternative Barack Obama. =)
@Kee
amen brother, except I do have a couple of somewhat newer Macs!
A nation with an economy built on debt is destined to fall.
History is filled with examples of this going back thousands of years.
That’s right, thousands of years.
@60
In case you don’t understand how the Senate or House works, all you need is 51 or 219. Especially when you have someone in that
White House that is willing to sign it. To override a veto you need two thirds. So the way I see it the Dems are afraid to put their name on the line for something they believe in because in the end they believe in nothing but themselves. 700 billion is what they want to spend like Bush but are chicken because then they have only themselves to blame if it fails, which it will.
@60
Maybe you didn’t read the news but it was the Republicrats that walked out in opposition to Bush not the Democrats. So stop dropping your pants and exposing your stupidity.
I find it humourous that people actually think that who they elect in actually makes a difference.
@ApplePi
I find it humorous that you find the fact that many voters are ignorant morons humorous.