“I don’t know about you, but I am enjoying watching a good old-fashioned panic. Smart investors should be looking to buy tech stocks at bargain basement prices as of now,” John C. Dvorak opines for MarketWatch. “It’s bottom-feeding time. But where is the bottom? Long-term investors who subscribe to “hold forever” philosophies should have started to buy once the Dow cracked 9,000 and just keep buying along the bottom. The old term for this was ‘accumulate,’ something you never hear any more.”
“The most interesting sector right now, at least to me, is technology. Everyone thinks it stinks, despite its ability to weather all economic circumstance. Also, consider the fact is the whole world is technology dependent and cannot get off the tech treadmill. It’s a good business,” Dvorak writes. “Tech stocks may now be looked at as food on the bottom of the floor. It’s not rotting and it’s relatively free. When a money-making company in a thriving industry growing at 10% or more a year with no end in sight has a P/E ratio of 4, then I’m not seeing this as an excuse to sell rather than buy.”
“The tech sell-off in particular, which was earmarked by Apple Inc. dropping below $100 a share, coincided with the jobless numbers reported on Oct.4 when 159,000 people were added t o the jobless cache,” Dvorak writes. “To tech investors and financial reporters, this translated to 159,000 people who would not buy a third iPod and a new computer for the family. The result of this tragedy would be the demise of all things tech, they reasoned. So the sector went into the tank along with the financials and the rest of the market. Of course it was just an excuse to get to the sidelines fast.”
“A few months from now, you’ll be hearing — on CNBC and elsewhere — the words, ‘And the tech rally continues today…’ with all sorts of analysis and bewilderment,” Dvorak writes.
Full article here.
Let’s hope the bloated gas bag is right for a change. It’s rare and hard to believe, but Dvorak getting it right has actually happened in the past:
• Dvorak: Microsoft’s ‘Mojave’ stunt humiliates ignorant users and itself – August 01, 2008
• Dvorak: ‘I advise everybody to buy a Macintosh because Apple products are the easiest to use’ – February 09, 2008
• Even a blind squirrel: John Dvorak finally gets something right about Apple – January 29, 2008
• Dvorak finally uses a Mac: recommends Mac to friends and neighbors – July 26, 2007
• Dvorak: Apple CEO Steve Jobs is dead right about DRM – February 07, 2007
• Dvorak: ‘If anything is doomed to failure, it’s Microsoft’s Zune’ – November 14, 2006
• Dvorak: record companies’ biggest concern about Apple’s iTunes is clear and accountable bookkeeping – September 29, 2005
Dvorak says, “”I don’t know about you, but I am enjoying watching a good old-fashioned panic.”
What an ass-hole, enjoying the strife that millions of Americans are feeling with the disintegration of their 401Ks and savings for retirement. Dvorak always was and always will be – a wanker. –Google that Dvorak.
He’s just trying to push a little over-optimistic song to have prices go upwards before selling again.
He doesn’t care less for those who’ll have piled few pounds of worthless paper and lost their last penny!
Better buy some solid silver or gold. At least you’ll still be able to exchange it for food and real needs when the money won’t be worth anything neither…
why we keep having to see his name is beyond me….
I am too shocked to comment!
Oh good grief, this just about guarantees the NASDAQ will hit 900 within 12 months.
Gee….his advice is to buy low and sell high….duh! Never heard THAT before. Next he will probably say something like….OSX is not as good as Vista.
Dvorak is more than right in his post. Apple bottomed at $85 and will begin bucking the market after it reports Q3 earning next Monday.
Apple guided $1.00 for the Sept quarter, but will most likely report earnings up to $1.27. That’s nice but the important announcement will be Apple’s guidance for the December quarter. With Mac sales flattening (QoQ) and iPod sales actually declining from the previous year, Apple is set to earn $1.74 on iPhone strength. Apple will most likely guide in the neighborhood of $1.26. That low amount should not scare investors because it is well within Apple’s conservative guidance parameters.
Don’t let the source of the report blind you. Dvorak is spot on with his post
Those spending their time knocking Dvorak, and not buying, will be the same ones that will be saying “I wish I had bought back in October”.
Ignore the messenger. Pay attention to the message.
Considering what a complete moron Dvorak has proved to be when he spouts off about Apple’s products, I wouldn’t want to bet my retirement income on anything he has to say about investing!!!
Alansky, I’ll bet that’s because you don’t bother to learn everything you can about Apple/AAPL and the overall market. If you had, you’d recognize Dvorak’s comments to be on the money.
What tech company is he talking about that has a PE ratio of 4? I’d like to know because it sounds like a buy to me.
@ Ron
Some of the ‘victims’ were people playing the stock and real estate markets like a casino and they have crapped out. Everybody cry for them (crickets).
I am a progressive and do not support the bail-out of Wall Street. Free markets let bad companies and bad investors fail. Apple didn’t get a government bail out and managed to turn the corner through the tech bubble bursting and 2000-2001 recession.
I for one, am tired of NeoCons pimping Crony Capitalism under the guise of ‘Free Markets’. As to the markets, someone has to lose in order for you to win.
Dvorak is right about this in general. As long as the company is well run, well resourced and actually has property (bricks and mortar or intellectual) worth something- they will survive and thrive.
It’s another woulda, shoulda, coulda time for Apple stock.
@Neoconned,
Then move to France, Canada, Cuba or Venezuela you fscking piece of sh!t. Just stop taking advantage of the benefits of living in the US, and then saying how ‘corrupt’ it is you goddam hypocrite.
Up yours.
@ Nutcracker
Wow, how mature. Can’t present some facts to support your opinion, so you just name call instead.
You must have been one of those ill informed people that invested all your money into a risky stock or mortgage. Then lost it all.
Read the fine print.
If it sounds to good to be true, then it’s not.
Only invest money in stocks that you don’t care about losing.
Bad choices require punishment. Let the banks fail.
I made smart choices so it won’t affect me.
Speaking of iPods and Dvorak, has anyone heard any recent news about the Dell DJShitty 2 and Enderle?
@Nutcracker….keep yer sh*t at home. Canada is sh*t and thankfully Nutcracker-free.
Moron.
Also, don’t think the stock market is done dropping. During the Great Depression, after the initial drop, it continued to drop over 2.5 years until it was only 11% of what it used to be.
That’s a 89% drop.
So, many thought the first month was bad, the next 2.5 years wiped out everybody except for the very rich that could ride it out that long.
The stock market is not for the faint of heart.
What Dvorak overlooks is that there are far BETTER opportunities in other sectors.
Those opportunities may become even better bargains in the next few months.
Keep some dry powder.
Finally! The bloated gas bag writes something intelligent.
@ Nutcracker:
big deep breath there, bro
it’s been a tough couple of weeks, and we’re not done yet.
we still live in a great country with a real democracy, unlike France, Cuba, or Venezuela. Canada I can’t say for sure, eh?
I agree w/ NeoCon – let the corrupt, greedy risk takers take their lumps, and let us cut our losses, not bankroll further boondoggles.
“I am a progressive and do not support the bail-out of Wall Street. Free markets let bad companies and bad investors fail. Apple didn’t get a government bail out and managed to turn the corner through the tech bubble bursting and 2000-2001 recession.”
Want to buy a car? Want to remodel your home? Want to put the kids through college? Unless you are independently wealthy you are going to need credit to do so.
I’m a fiscal conservative (hate progressives) and dislike any kind of government subsidy or bailout. This one was needed because the banks with money weren’t lending to banks without, because nobody knew what the assets of the other banks were worth (collateral). Without that intrabank credit availability NOBODY could make any loans.
Without credit our economy comes to a complete halt. So, no I don’t like bailouts, and technically this isn’t one (the Treasury actually bought the bad loans and received in addition to the loans an equity position with the lender), but it was needed. Otherwise you would have to get a job on a farm just to be in line for food.
Admitting Dvorak is right; sign of the Apocalypse!
But I do agree, this is a buying opportunity one only sees once or twice in a lifetime.
I am shocked at the number of people who act like Mindless iDiots when it comes to their money. Think for yourself! Think Differently! (Doesn’t Apple know how to use proper English?)
There are only a handful of people I know of whose investment advice is worth taking. When I want advice on how to fix my car I talk to a mechanic. When I want advice on investments, I study the subject myself.
Apple fan-boys will mindlessly buy Apple stock, not knowing there is a difference between a good company and a good stock. Like other fools, the stock market will take them out and financially execute them. Such is the fate of iDiots.