Apple shares still have room to grow

“I know the feeling well. You have a stock on your watch list, and you’re just waiting for the perfect entry point. But before you can blink, the price shoots up, and your jaw hits the floor,” Brian Stoffel writes for The Motley Fool.

“Don’t give up on a stock just because you feel like you’ve missed the boat,” Stoffel writes. “Even Apple (AAPL), whose stock price has already climbed 50% year to date, can still offer opportunity for investors.”

Stoffel gives his top five reasons to believe in Apple’s continued growth:

1. The iPad
2. The iPhone on Verizon
3. Apple’s international market
4. Apple’s pile of cash
5. The x-factor:
Ever since Steve Jobs returned to Apple, the company’s been thinking years ahead of its competition. Apple didn’t enter the next-generation smartphone or tablet market; it created it. I have no idea what the next market-creating gadget will be, but if history’s any indication, I believe Apple will lead the way.

Read more in the full article here.

[Thanks to MacDailyNews Reader “Dan K.” for the heads up.]

14 Comments

  1. Oh ffs not this split nonsense again.

    vv. what is stopping you from buying AAPL right now? Here’s one answer you can’t give. Because the stock is too expensive.

    I’ll say this nicely, but if you don’t understand what a split really means, then you probably have no business investing in the first place.

  2. Hey, vv — there are lots of places that will let you buy stock in fragments (you don’t have to buy a whole share). I use buyandhold.com and for $8/month I get two purchases a month. I have it automatically buy a little Apple each month (a set dollar amount, not a share amount). It eliminates any worries about the actual cost of the stock.

  3. Sharebuilder gives $4 scheduled trades- orders in on Monday by 5 ET & execute on Tuesday. Any $ amount you would like scheduled or as you fund your account. Pricing for on demand is different, but $4 is as cheap as I know of.
    I’m buying $250 more of Apple next week as part of my constant $ investing.
    Other outfits offer similar plans so there really is no excuse if you want to buy into Apple.

  4. It’s all about the psychology of the average investor. So you guys really don’t think that splitting would bring more investors in an raise the market cap faster than not splitting?

  5. Bill

    Decline due to Cisco’s disappointing earnings. I know, I know, this has nothing to do with AAPL, but a lot of portfolios take a sector approach to news. And AAPL sells off more because short-term investors have profits to protect. But really, who didn’t already know CSCO was running out of headroom?

  6. @w
    Splits were created in order to keep share prices under $100. This was because you could only buy in blocks of 100. Today with online trading you can buy shares in fractions of the cost. Plus Apple is a brand of quality. Why should AAPL be priced the same as MSFT or RIMM? There is a perception if quality in the investment too.

  7. @vv.

    Open an etrade account. Put a couple thousand bucks in it, and buy as many AAPL shares as you can get out of it. Doesn’t have to be in a lot of 100.

    And I’d avoid using Sharebuilder. It seems like a great idea at first, because you can buy partial shares, but there’s a ‘catch’.

    Let’s say you bought 1/4th of a share of AAPL for around 75$. Next month you did that thing again, and you did that for 4 months straight until you had one share. Congratulations you have one share of AAPL that now has to appreciate 16$ just to break even on the $4 monthly commission.

    You want to buy as many shares as you can in one lump, so to spread the flat commission out over as many shares as possible.

    If you can buy bigger clusters of shares through Sharebuilder, then great, it’s probably a good deal for really small entry level investors. abut Sharebuilder markets itself for small investors who might buy partial shares, and it’s not a good deal when used like that.

    Besides, most online brokerages will let you buy small numbers of shares, but the same commission per share rule applies. Buy as many as you can at one time to spread the commission cost out over a larger number of shares.

  8. and one more thing…

    If you go with an online broker, don’t use Scottrade. For one thing, you will be PLAGUED will calls from salesmen. Two, their accounts are easy to put money in to but not easy to get it out. They try to maximize the amount of contact you have with their people so they can sell you services.

    I’ve used etrade for years (because Apple uses etrade for stock options and employee stock purchase programs) and its extremely easy to transfer money into and out of your account.

  9. I use Etrade as well, but have been thinking about moving elsewhere.

    On the lower right of the individual stock quote page, are the Analyst reports (Reuters, S&P, Smart Consesus, Market Edge) in PDF.

    Regardless of your thoughts about the analysts, IF you want to read them you can’t using iPad Safari because only 1/2 of the first page downloads.

    I have brought this to Etrade’s attention to which I was told they don’t support the iPad!

    You can imagine my reply both in email and phone call. Millions of iPads sold, AAPL over $300/share, computing changing as we know it, and these idiots are OK with this kind of bug?!

    Interestingly you can download other PDFs like your statements without problem. Just the Analyst reports seem a problem.

    I “think” I’ve gotten their attention, but if you have an iPad and use Etrade check it out and send a complaint.

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