Apple ‘slingshot’ in full effect

“Well, well. The ‘Slingshot’ is working overtime. This article [series was begun] about a month ago with Apple’s (AAPL) stock trading at $600 and things have gotten worse for Apple’s shareholders,” Tradevestor writes for Seeking Alpha. “Yes, it does get repetitive to have the same story told over and over but as of this writing, the stock is trading at $[$524]. And with that many new milestones have been achieved.”

“Welcome yo the 2% yield, Apple. Yes, Apple is the latest stock to cross the 2% yield that many investors and funds wait for,” Tradevestor writes. “At $530, Apple’s annual dividend of $10.65 gives it an exact 2% yield. With a low payout ratio of about 24% and that huge cash pile, this is perhaps just the beginning of the good times for dividend investors with Apple.”

“Apple’s PE has dropped below 12 for one of the very few times over the past 5 years,” Tradevestor writes. “The current dip happens to be the 3rd instance that the PE is below 12 and if history is any indicator, the 6 month returns are going to be huge as well for ones who stick or even buy here. This can be explained because Apple’s fiscal Q1 and Q2 have been the best quarters for the stock. Q3 and Q4 usually go side ways and present great buying dips.”

Read more in the full article here.

[Thanks to MacDailyNews Reader “Ellis D.” for the heads up.]

31 Comments

  1. but the rubber band broke and the rock is hurling back at your face. APPL is Down down down. Someone needs to kick this dead horse a bit to get it back up on it’s feet, Or just shock the shit outta it to give it life again. Apple should change it’s ways in dealing with the public as saying nill is hurting itself.

    1. The wild cat this time is the coming Cliff. That is not generally factored in standard stock analysis. People are also selling because of fear over capital gains issues. Some may buy back in. Others will wait until things settle down.

  2. “and if history is any indicator”

    Article fail, right there. History did not have all the present factors, internal or external. History, the head-and-shoulders, whatever, they’re all doing jack all for AAPL.

  3. To use a recently heard term, what a bunch of Malarkey. Apple has tons of cash, loads of new products that people are dying to buy. It is a known recession-proof stock. The whole world is hurting people, wake the *uck up. The slingshot will happen when things improve overall.

    Bunch of pussies.

    1. Apple can promise new products, but history shows that Apple is a day late and a dollar short fufulling its promises. I am tired of the hype followed by the inexorable wait.

  4. As a wise investor once told me, “Never, never, EVER fight the ticker.” That advice finally sank in, and today I sold 1/3 of my AAPL (almost 2000 shares) for only the second time ever. The trend here cannot be bucked, not with the Fiscal Cliff coming, so I’m reaping profits for the second and final time on this marvelous equity, I think. It rends my soul to do this, but the hedge funds, insurance companies, retirement funds, and the like are just too strong to fight any more. Too much European recession, Asian slowdown, product shortages, managerial uncertainty, governmental ineptitude, et al., for me to take and still sleep at night. Hope better things are coming soon, but I dunno . . . .

    1. Robert Heinlein once wrote something like “Always listen to experts. They will tell you what you can’t do and why. Then go do it.”

      If you don’t like the trend, wait for a new trend. Heck Apple could drop to 400 and I still would not sell it. I know one day it will reach the number I want it to reach, and then I’ll sell. I am not worried about all the other days, just that one.

  5. Don’t try to be a hero in proving you’re right and the market is wrong. You may be right eventually, but the market remains irrational a lot longer than you remain solvent. These are the problems with the analysts. They want you to believe they are right and the market is wrong.

    We now know AAPL has been in free fall since last earnings disappointment because big boys have been dumping big time. They own large amount of shares, so it take weeks or months for them to finish selling when they decide to exit or lighten up. You definitely don’t want to get caught in the vortex of their selling.

    Unfortunately, I think the selling would continue for at least another week and AAPL could be below 500 by then. As to why they sell, no one knows for sure but it has a lot to do with Apple earnings misses in two consecutive quarters, serious margins erosion which may take more than a few quarters to recover, chronic product delays and shortages due to long-term manufacturing problems and supply issues, and lack of confidence in management ability to successfully address the earnings, margins, and production issues.

  6. With Apple reaching a P/E of 12 you just have to know something is wrong with the stock market. If a company’s fundamentals haven’t changed and yet the share price continues to fall and fall, the stock market has to be blamed. Apple’s P/E is nearly in Cisco territory and that’s just totally insane. Apple could buy Cisco with reserve cash and have plenty left over and yet Apple is still being called overpriced by some people. Even IBM and Microsoft have much higher P/Es than Apple and it’s hardly fair for Apple shareholders. It’s as though the market is saying that Microsoft has higher growth potential than Apple? No way, Jose.

    1. The stock market is alway right. No matter what you think it should be doing, it does exactly what is does. The market is a measure of people’s confidence in the promises made by companies. When they don’t trust the promise for what ever reason, they either sell or don’t buy the stock. That is the nature of the beast. The numbers many love to look at have little to do with creating the mood of the market.

  7. Taxes going up jan 1….

    Big gains this year in stock

    Mutual funds, private investors, hedge funds selling to lock in gains and not pay additional taxes, both short term and long term….

    Not surprising. I sold 100% of my holdings (IRA) since I knew it would drop based on taxes and locking in reportable profits.

    Fundamentals? Strong. Taxes? Going up.

    Simple choice.

  8. When it was $700 and I said it was an overpriced $400 stock I was called a troll and accused of not ever having owned Apple stock or whatever. Same at every bounce down the stairs and we are now down to $525- only $125 to go.

    When the following things happen I will change my tune or see you at $400:

    1- Apple stops shooting itself in the foot- iOS6 Maps, missing ship dates on iTunes and other lovely un-Jobs like conduct.
    2- Apple figures out exactly what it wants to be. Is it a consumer electronics company, a computer maker that sells phones, a phone maker that sells computers, an electronic fashion house or what?
    3- Apple figures out the cloud. Apple cloud services are certainly better than they used to be, but are in no way better than what can be had elsewhere. For example, Amazon offers a higher song limit than Apple on iTunes Match. Apple used to be world beaters- not an also ran. iCloud is nothing special for the most part as it currently exists. Exactly how long has Apple been screwing around trying to get it right since iTools (January 5, 2000)?
    4- Apple TV stops being a hobby and starts being a serious attempt at being something other than a me too product.
    5- Apple starts using the massive cash pile for something productive instead of pissing it away on stock buybacks, dividends, workers goofing off on company time, etc. Use the cash like a weapon. My god, a hundred Billion should be able to make someone’s pipe dream come true.
    6- Apple gets serious about the Pro market for OS X. Red Hat Linux and Microsoft Windows is used to power everything from gas pumps to MRI machines and not a Macintosh in sight as OEM equipment. Microsoft is out screwing up the automotive world with it’s embedded OS and Apple doesn’t even try to put it’s UNIX core to work. What happened to the server OS, not to mention the XServe and now the Mac Pro.

    Enough for now.

    1. I’m loathe to agree with your point number 6. This was a big miss for Jobs’ Apple. I know I know – believe me, I’ve heard all of the back pedaling on behalf of Apple by people that don’t and didn’t really have anything invested in Apple’s very good and very short-lived enterprise product line, but I sold an anti-Apple company on that product line and Apple bailed. It was excellent competition for MS in that arena and should have been pursued with a vengeance by Apple. Period.

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