“First, I’m told cost basis doesn’t matter,” Rocco Pendola writes for TheStreet. “Next, Netflix soars 40% on Reed Hastings’ latest smoke and mirrors show. Then I watch Apple crash 10% on one of the best earnings reports in the history of the world.”
“Am I living in one of the alternate realities I listen to Elliott Smith sing about or the ones I read about in a Haruki Murakami or William Gibson novel?” Pendola wonders.
Pendola writes, “There’s a good chance that if you ‘stand your ground’ (always be careful when you speak about a stock using such emotional language), AAPL will turn around, you’ll make money, recoup any losses, gain back profits and look like a genius. But you have to resist that urge. Because, like so many other things in life, what you think is going to be a one-off thing often becomes a habit. And reacting with an emotional stubbornness will hurt you more often than not.”
Read more in the full article here.
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Topeka Capital cuts Apple price target to $888 from $1,111 – January 24, 2013
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Adam Lashinsky: What Apple’s earnings really mean, and what’s that $9 billion in ‘equipment’ for? – January 24, 2013
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MacDailyNews presents live notes from Apple’s Q113 Conference Call – January 23, 2013
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Most AAPL investors allow themselves to be punked. The guys doing the punking know this. The guys doing the punking make lots of money off of most AAPL investors. Most AAPL investor’s research consists of watching CNBC. CNBC gets paid by its advertisers to draw eyeballs. If you don’t read AAPL statements, listen to the conference calls and then review all of the analysis available and make up your own mind you will get punked.
Rule #1: Don’t watch CNBC or read Seeking Alpha. And Do NOT read Business Insider or SAI. They spew nothing but noise, FUD and hysteria.
Rule #2: Remember that every investor needs three qualities – patience, perseverance and courage. All the recent BS is based on idiotic technical traders, momentum traders and the Internet echo chamber. Ask yourself: if you were Samsung, what would you do? Exactly as has happened. You as an investor have to see beyond the here and now.
This too shall pass. It’s not fun, but practically every stock you follow will have plunges. So long as the underlying stock financials remain solid, strap in and hang on. Peptones Bismol will help.
@iwatchamacallit – that sure was an ignorant post.
Why is it ignorant? If you invest in anything without understanding what you’re investing in you don’t stand a chance of making a good investment. I think AAPL is a good investment but my assessment is not based on what a talking head tells me is a good investment. If I want to know something about sentiment then watching a talking head on CNBC will do that for me but not much else.
To me a lot of the volatility in AAPL is a function of investors following the latest meme on what a good strategy is for AAPL. They follow the herd once the herd has already made its move. By the time they join, the heard is getting ready for their next move.
This guy is a dope. A Johnny-come-lately. Now he’s giving advice that people who are underwater with AAPL might as well hold on because it may rebound. Wow what a genius! Where was he 250 points ago? Why wasn’t he smart enough to understand that it was time to take profits then? Smart investors knew. He has no clue. Then or now. Idiot!
iwatchamacallit, understand this. There are investment institutions that are big enough to exercise pricing power over Apple equity shares. They can afford to subsidize media outlets of misinformation (otherwise known as financial analysts) and to use high frequency trading techniques. Your “punking” rhetoric assumes a free market will regulate these institutions’ actions. There are thousands of studies of oligopolistic and monopolistic activities that disagree.
I don’t disagree with you. To whit http://www.postsateventide.com/2013/01/the-mysterious-case-of-apples-missing.html?m=1&utm_medium=referral&utm_source=pulsenews
My point is simply this understand what your doing when investing. If your horizon is short term then pay attention to momentum. When investing in the long term then pay attention to fundamentals. Whichever way you invest you should take the time to understand what you’re doing and not take advice from a talking head on CNBC. And you sure shouldn’t take advice from just one source. Just do your homework. The way AAPL trades over the short tern suggests at least to me that too many AAPL investors are playing a gameof catchup and chase the stock up or chase it down. Is a trailing P/E of 8 for an AAPL an even sane number? I don’t think so. Is a P/E of 3680 for Amazon a sane number? I don’t think so. But I bet most people who are investing in these companies don’t even know what those numbers are let alone what they represent even if they can’t do the math to get it themselves.
Well, most of us “mac enthusiasts” purchased our apple stock at below $100.00 a share. So no complaints here…2012, was a great return 30%+
2013 I am sure will be more of the same.
There is still plenty of complaining about the market. Why should a company make so much profit and have little stock price movement to show for it.
Ignore Rocky. He’s bipolar and is not worth the time.