“In fact, Jobs revealed four insider opinions on the future of tech that if true, will result in Apple stock continuing its run to overtake ExxonMobil(XOM_) as the world’s largest cap stock,” Schwarz writes. “As a rare jack-of-all-trades innovator, Apple is blazing a trail that no company has ever traversed.”
Consider the following four insights from inside the brain of Steve Jobs:
1. Touch Screen Software Is King
2. China Is the Prize of Prizes
3. iPad Enterprise Adoption Is Gaining Steam
4. Future Product Announcement
Full article here.
[Thanks to MacDailyNews Reader “iWill” for the heads up.]
Sorry everyone about cross-posting; there seemed to be no action on the other thread, so I thought nobody saw it.
KenC,
You may be right regarding the stops, but I had a feeling that the $300 number is a very prominent barrier, and punching down through it (even if only two trading days after crossing it first) would spook a lot of people.
@January 24, 1984
Agree with U. Long is the main game! If you are into the AAPl stock < $120 then there is nothing to worry! Just think “how high” Up????
2011 > $401 period! No brainer!!!
2012 @ $501
Save Transaction Fees!!! Buy & Hold
” width=”19″ height=”19″ alt=”grin” style=”border:0;” />
Happy 401k
” width=”19″ height=”19″ alt=”grin” style=”border:0;” /> Thank you AAPL!!!!
@January 24, 1984
Agree with U. Long is the main game! If you are into the AAPl stock < $120 then there is nothing to worry! Just think “how high” Up????
2011 > $401 period! No brainer!!!
2012 @ $501
Save Transaction Fees!!! Buy & Hold
” width=”19″ height=”19″ alt=”grin” style=”border:0;” />
Happy 401k
” width=”19″ height=”19″ alt=”grin” style=”border:0;” /> Thank you AAPL!!!!
I had to sell at ~$250 for a house downpayment.
The same house that drains the future disposable income I’d use to invest in Apple stock.
/sigh
I had to sell at ~$250 for a house downpayment.
The same house that drains the future disposable income I’d use to invest in Apple stock.
/sigh
@predrag:
I agree with you. AH low volume (~400k) means it’s easy to push the price around. I’m sure there was some of that. I learned years ago about being sniped with stop orders. I haven’t used them in years in AAPL.
That said, there are now more than ever those bandwagon traders who are only here for the earnings week and then jump out. Over the years I’ve seen more and more of that kind of action. But it’s still a coin toss as to where AAPL goes after any kind of earnings statement. It all has to do with expectations.
@predrag:
I agree with you. AH low volume (~400k) means it’s easy to push the price around. I’m sure there was some of that. I learned years ago about being sniped with stop orders. I haven’t used them in years in AAPL.
That said, there are now more than ever those bandwagon traders who are only here for the earnings week and then jump out. Over the years I’ve seen more and more of that kind of action. But it’s still a coin toss as to where AAPL goes after any kind of earnings statement. It all has to do with expectations.
@Predrag
Right or wrong – I commend you for fully understanding stocks are a game for only the wealthy and the less savvy will almost always lose their shirt. I havent seen anyone not already wealthy enough to invest heavily become rich. Is this my mistake? Can an average 9-5er become rich through stocks, or only add maybe 10s of thousand to his bank account while risking much more. I only feel this because I don’t believe middle class or poor people become rich people without putting in the required work first – even if it means working to have $70,000 to invest. I feel the stock market is sucker bait – what do you think?
@Predrag
Right or wrong – I commend you for fully understanding stocks are a game for only the wealthy and the less savvy will almost always lose their shirt. I havent seen anyone not already wealthy enough to invest heavily become rich. Is this my mistake? Can an average 9-5er become rich through stocks, or only add maybe 10s of thousand to his bank account while risking much more. I only feel this because I don’t believe middle class or poor people become rich people without putting in the required work first – even if it means working to have $70,000 to invest. I feel the stock market is sucker bait – what do you think?
As we say in football…I’m going long……
As we say in football…I’m going long……
@BDD A 10:1 stock split would mean the end of growth. It would take forever for the stock to move. For example:
1. Great earnings report or news release: 10 point rise.
With your split idea, that would only be a 1 point rise in the stock price from 31 to 32. No money would be made at all for the so called “small investor.”
In my opinion, if you believe in the stock, accumulate it. My kids have been accumulating it since 40, first buying 5 shares, then 1 or 2 at a time. They now have 20. There is nothing written that says that you have to buy 100 shares of anything. But splitting the stock only causes inflation and limited growth. If you want a perfect example of this, look at Microsoft. At one time they had 10 billion shares out. It took forever and a day to move 1 point.
No money will be made with a stock split. The Great Warren Buffet has preached this forever and it is what Google looks at and now Apple is doing the same.
r.
@BDD A 10:1 stock split would mean the end of growth. It would take forever for the stock to move. For example:
1. Great earnings report or news release: 10 point rise.
With your split idea, that would only be a 1 point rise in the stock price from 31 to 32. No money would be made at all for the so called “small investor.”
In my opinion, if you believe in the stock, accumulate it. My kids have been accumulating it since 40, first buying 5 shares, then 1 or 2 at a time. They now have 20. There is nothing written that says that you have to buy 100 shares of anything. But splitting the stock only causes inflation and limited growth. If you want a perfect example of this, look at Microsoft. At one time they had 10 billion shares out. It took forever and a day to move 1 point.
No money will be made with a stock split. The Great Warren Buffet has preached this forever and it is what Google looks at and now Apple is doing the same.
r.
@Predrag
Isn’t it curious that electronic stock trades are instantaneous
but paying ones bills by Visa over the internet takes days
to be credited to ones account?
@Predrag
Isn’t it curious that electronic stock trades are instantaneous
but paying ones bills by Visa over the internet takes days
to be credited to ones account?
maclover:
In the mid- to late 90’s, I knew a (then young) guy who had a junior day job at JP Morgan (before the Chase merger). He was able to put some of his paycheque away and put it in the stock market. In the six or seven years that I had known him, he recklessly traded with that extra money and just before the dot-com thing blew up in everyone’s faces, he quit his job and moved all of his money out of stocks and into some treasury notes. He was able to amass a low 8-figure retirement fund in those few short years. Needless to say, he was immensely lucky and the only thing that prevented me from such a foolish attempt was a downpayment on a Manhattan co-op. Luckily enough, I got in at a pretty low point, and got out three years ago, at a rather high point (when a second child forced us to sell the one-bedroom). I’ve been renting since, holding onto my profits, staying out of the stocks roulette. The Manhattan real estate market has meanwhile lost some 30%. Perhaps I’ll buy in again, this time something larger (preferably, for the same money as I sold…).
maclover:
In the mid- to late 90’s, I knew a (then young) guy who had a junior day job at JP Morgan (before the Chase merger). He was able to put some of his paycheque away and put it in the stock market. In the six or seven years that I had known him, he recklessly traded with that extra money and just before the dot-com thing blew up in everyone’s faces, he quit his job and moved all of his money out of stocks and into some treasury notes. He was able to amass a low 8-figure retirement fund in those few short years. Needless to say, he was immensely lucky and the only thing that prevented me from such a foolish attempt was a downpayment on a Manhattan co-op. Luckily enough, I got in at a pretty low point, and got out three years ago, at a rather high point (when a second child forced us to sell the one-bedroom). I’ve been renting since, holding onto my profits, staying out of the stocks roulette. The Manhattan real estate market has meanwhile lost some 30%. Perhaps I’ll buy in again, this time something larger (preferably, for the same money as I sold…).
@RickW
I don’t understand your reasoning. If someone wants to invest $100 then they buy X number of shares at Y price. Nowadays you can buy fractions of shares so it is not a biggie that aapl is up to $300.
Also it makes no sense buy 1 or 2 shares if you are paying transaction fees. If you buy $100 of shares and your fee to buy in is $9, then the stock will have to rise to 109 to start making money. Also you have to pay to sell again so in reality you’ll need the stock to go up to 118 to make a profit.
I stopped buying and selling shares once I realized that a lot of the profit was going into paying for trades.
My last trade into aapl was at 72 and I bought over a 100 shares. Therefore now the trading fee is less than 0.1% of the value.
@RickW
I don’t understand your reasoning. If someone wants to invest $100 then they buy X number of shares at Y price. Nowadays you can buy fractions of shares so it is not a biggie that aapl is up to $300.
Also it makes no sense buy 1 or 2 shares if you are paying transaction fees. If you buy $100 of shares and your fee to buy in is $9, then the stock will have to rise to 109 to start making money. Also you have to pay to sell again so in reality you’ll need the stock to go up to 118 to make a profit.
I stopped buying and selling shares once I realized that a lot of the profit was going into paying for trades.
My last trade into aapl was at 72 and I bought over a 100 shares. Therefore now the trading fee is less than 0.1% of the value.
I was watching the afterhours prices streaming in the hour after market closed yesterday, and for the first half hour it hovered somewhat near closing price of $318 (within a couple of points.) The Apple earnings conference call was scheduled for 2pm Pacific time (an hour after market closed) and we were still 15-20 minutes away from the announcement when the stock just took a dive. In less than ten minutes is was down to $294… before any announcements. WTF??
When the conference call began, the stock slowly gained a few dollars and wavered between $298 and $303. But to me here’s where it smells really fishy — all the pundits and writers were attributing the huge drop in AAPL to the “disappointing” iPad sales numbers. If this is the case, then how did those numbers get out to certain traders before the official announcement? All the damage was done before the conference call — Period! That’s a fact. Sounds like insider shenanigans to me.
I was watching the afterhours prices streaming in the hour after market closed yesterday, and for the first half hour it hovered somewhat near closing price of $318 (within a couple of points.) The Apple earnings conference call was scheduled for 2pm Pacific time (an hour after market closed) and we were still 15-20 minutes away from the announcement when the stock just took a dive. In less than ten minutes is was down to $294… before any announcements. WTF??
When the conference call began, the stock slowly gained a few dollars and wavered between $298 and $303. But to me here’s where it smells really fishy — all the pundits and writers were attributing the huge drop in AAPL to the “disappointing” iPad sales numbers. If this is the case, then how did those numbers get out to certain traders before the official announcement? All the damage was done before the conference call — Period! That’s a fact. Sounds like insider shenanigans to me.
@Doggone.
I beg to differ with you. If your time horizon is 3 months, then yes I would agree that transaction fees are an issue. In the case of my kids, we have been investing in AAPL over the past 6 years, making a few small trades with a transaction cost of 7.99 each trade. Sometimes $200, but usually $500. When the stock was at 40, the $200 bought 5 shares plus 7.99. If you add it all up for one kid, the transaction costs have been $96. That is not a lot of money given the net appreciation of the stock. Each kid is looking at around $6k in their educational account based on this one stock alone. I have not done the basis yet, but it is well under $2k, including the transaction costs.
Nickle and Diming transaction costs will keep you out of making more money. You have to pay someone something sometime.
In the long run I think they are doing well. I’m still not quite certain how this relates to the 10:1 split thing though? I stand by small moves rule though. No real money can be made if you have a 10 billion share float. It’s the same thing holding back XMSR and MSFT. Who in their right mind would invest in that?
@Doggone.
I beg to differ with you. If your time horizon is 3 months, then yes I would agree that transaction fees are an issue. In the case of my kids, we have been investing in AAPL over the past 6 years, making a few small trades with a transaction cost of 7.99 each trade. Sometimes $200, but usually $500. When the stock was at 40, the $200 bought 5 shares plus 7.99. If you add it all up for one kid, the transaction costs have been $96. That is not a lot of money given the net appreciation of the stock. Each kid is looking at around $6k in their educational account based on this one stock alone. I have not done the basis yet, but it is well under $2k, including the transaction costs.
Nickle and Diming transaction costs will keep you out of making more money. You have to pay someone something sometime.
In the long run I think they are doing well. I’m still not quite certain how this relates to the 10:1 split thing though? I stand by small moves rule though. No real money can be made if you have a 10 billion share float. It’s the same thing holding back XMSR and MSFT. Who in their right mind would invest in that?
@KingMel “AAPL typically falls after an earnings report, no matter how mind blowing the results”.
Is this true? I’ve only held Aapl shares since June ’09 and haven’t looked at the whole of Apple’s stock history, but I know that if you’re talking about the day after earnings, Apple went up next day after every earnings announcement since April 2009. As far as what happens in the few weeks after earnings, it does seem to be the case that Apple temporarily gives back some of its earnings gains. That’s only to be expected as decompression sets in after pre-earnings hype. I agree, though, that its a dangerous crapshoot to put everything on earnings.
@KingMel “AAPL typically falls after an earnings report, no matter how mind blowing the results”.
Is this true? I’ve only held Aapl shares since June ’09 and haven’t looked at the whole of Apple’s stock history, but I know that if you’re talking about the day after earnings, Apple went up next day after every earnings announcement since April 2009. As far as what happens in the few weeks after earnings, it does seem to be the case that Apple temporarily gives back some of its earnings gains. That’s only to be expected as decompression sets in after pre-earnings hype. I agree, though, that its a dangerous crapshoot to put everything on earnings.