Apple is dead money for now

“In the past, Apple had always recovered after a bout of profit-taking and marched on to new highs,” Bill Gunderson writes for MarketWatch. “This time was different, however. By early October, the stock broke below its 50-day moving average for the first time in six months. Early profit-taking then started to escalate into some serious selling.”

“In mid-October, the 20-day moving average crossed below the 50-day for the first time in five months. This was its first so-called death cross and now even ardent believers in the stock began to take notice,” Gunderson writes. “Early profit-taking had turned into serious selling, and now panic selling was starting to set in. The stock then proceeded to go almost straight down for almost two months. Full-blown distribution finally hit America’s darling, and $705 became $505 very quickly.”

Gunderson writes, “I don’t know about you, but I never buy a stock in a downtrend. Even though it was tempting, we first needed to find out where the downtrend would eventually end. The stock had some support in the $500 area, but after a quick little 90-point bounce, the ugly downtrend resumed. The stock tested $500 again, and it looked like it might hold, but then gapped down again after earnings and finally settled in the $450 area… Now that the stock is $450, isn’t it time to get back in?”

Read more in the full article here.


  1. The stuff they say is so preposterous and ALWAYS the opposite of reality that it’s wonder the SEC hasn’t stepped in on this type of organized manipulation. Or maybe it is for the best, a kind of Darwinism that favors bullshit and greed over anything of real value.

    1. Just posted this reply on the Android Malware Article. AAPL Will recover from such blatant across the board CORRUPTION in our Free Country?. NO!!!?? Life, Liberty and the Persuit of Lies and Bribes to cover up the truth. NOW LUCY Koh can’t be the case…..??? can it?

      Wait till Android~Gaagle Malware, self propagates xcross millions & millions of SamScum and other AssDroid Devices via 3G, 4G or LTE. It WILL happen. It’s only a matter of iTime. Sit tight AAPL investors. The best has yet to come. Be not afraid of the trite propaganda in the mainstream media empowered by The Corrupt U.S. Government, bribed by Gaagle’s one and only Eric T. Mole Shithead. They can only sweep the truth under the Wall Street rug for so long. Just ask Mikey!!!! He knows EVERYTHING!!!

      1. Kabam’s Carvalho credits Samsung’s Galaxy S III, with features matching the iPhone, for much of the surge in apps for Android. Developers can also release Android software more quickly because, unlike Apple, Google doesn’t review apps before including them in its store.

        Makes me all warm and Malware inside.

    1. Why do you spew such garbage? Apple is trading at a P/E ratio of 6 (minus it’s cash holdings). What is Amazon’s P/E ratio (over 3200! for a sotck share price of $260); What is Google’s P/E ratio ( over 23).
      Apple is being manipulate with all this FUD in the media. And please don’t tell me Apple has stopped innovating. Do you know what they have in the pipeline? Do any of these so-called analysts?
      As Steve Jobs famously said, “have you ever invented anything in your life?”

      1. PE ratio by itself means nothing.

        Apple does not operate in a vacuum. Look at the economy and market, the poor operational side of Apple and the state of the competition.

        One does not buy a stock on the past or the present. One buys on the future and most of the easy money has been made on Apple.

        “As Steve Jobs famously said, “have you ever invented anything in your life?””

    2. Perhaps you’re not familiar with this troll, dzoolander007.

      He (AgentPee) admitted some time ago that he (supposedly) sold all his AAPL @400, making him the world’s greatest fool when it rose to 700. Because of his stupidity and lack of financial acumen (and not waiting to sell at its high), he is PRAYING that the equity will return to 400 so his mistake will be erased from his conscience.

      Good luck with that, APee. Maybe you can buy both of your shares back sometime soon and finally rest your troubled head.

      1. I did not sell ALL my Apple stock at $400. I sold enough to cover the cost of a new car and taxes. I stopped buying in the $320-330ish range and have sat on it since.

        Since I bought my first Apple stock at a split adjusted price of less than $5/ share the profit was significant for most of it.

        I sold @ $400ish to take some money off of the table and reward myself with the proceeds. I thought the stock overvalued above that point, still think it was and the market has clawed it back to the mid $400s from over $700 and has stayed there.

        Maybe Apple will be worth $700/ share, but I have yet to see a future that would suggest such speculation.

        So Mr/Ms unregistered Truax, you are wrong on all accounts. Don’t be so bitter. Mike Dell will gladly buy back your portfolio when he takes Dell private.

  2. Well, it is dead money. Take a look at Apple today. Although the stock has taken a pounding over the last few months, it’s still taking a bigger beating than stocks like Google, Amazon, Intuitive Surgical, Priceline, etc.

    I don’t even want to mention Netflix in the same breath as Apple. A half year of iTunes revenue is nearly worth more than all of Netflix, but can’t even stop Apple’s stock slide. Considering Netflix’s share price growth rate it should be worth half of Apple’s share price in a few months. Sorry, but right now, Apple IS dead money. Today, Apple’s P/E nearly touched 9.x again. It may not be Apple’s fault, but Apple’s stock has become seriously toxic waste to investors at large.

    1. LB48,
      See below. Speculators not investors. A speculator does not care about who or what the company does or why. Only can they profit from its stock price moves. Can they move the price so they can profit.

      Its an important distinction.

      Just a thought.

  3. ” My last consideration is the stock chart. What is the current health of Apple’s chart?” The company matters not. Not an investor.

    The stock chart is what matters. Speculator. Play profits and loss and make money… cool But NOT an investor.

    Just a thought.

  4. This is the same crap as back in 2007 to mid 2008. AAPL went from about $200 down to about $90. Note, from $90 it climbed to the $705 of last September 2012. The same thing happened. I was pissed then and don’t like it now. If you weren’t in at the low $90 than you missed the full almost 8 times run up to last year. Or the 5 times growth to today’s BS of $450.

    They are shaking everyone out that will sell. All they talk about is how people can make money on people using Apple iOS mobile devices. Apple makes money on every mobile iOS device and the products that are purchased by them. FaceBook, Google and the others are trying to cash in on Apple’s iOS devices. Like Apple does.

    So, sell the only company that always makes money on today’s mobile market. Apple!

    1. Would have to hit below $375 to have same effect as $200 down to just below $80 …….

      Apple is very undervalued ….. And the dividend should stop any deterioration below $400 ….

    2. that’s not the same situation. in 2007 nobody was care ‘apple’. market value was joke. but thanks to iphone, ipad, apple became suddenly tech giant. but this heyday seems to end soon because iphone, ipad market are almost full. it is still expensive. they can’t still follow demand now. right now it is supposed to be 24 hours available in stock. but it’s not. iphone, ipad are no innovation anymore. people just easily predict what next version will be now. apple is dead.

    1. I should not bait trolls, but today, I can’t help it. /s lol

      “Yep – $400 as long as Tim Cook is CEO. ” OK you are saying that the price will not drop below $400 while Tim Cook is CEO. Cool. Since it was $700 and the company is only getting stronger, I would say the price is headed back up. Especially if Tim does NOT concern himself with the market actions.

      Play the market and speculate all you like. If you are good at it, you will make money. Of course, hindsight is always great, sadly you cannot make money on hind site.

      Just a thought.

  5. Probably my own geographic bias talking, but I’ve suspected for months that big money from East Asia was made available to certain willing financial partners (see them prominently spouting off on your favorite financial network) to sell Apple and keep selling. If I am right, the selling pressure will be unrelenting, absent a global realignment of licenses and tech alliances. With sure backing from deep pockets and a massive disinformation campaign against Apple, the sellers make sure money. Use your imagination.

  6. It’s speculator’s era, big dog fight. The scene is so blurred that average investors could be lost easy. In time of uncertainty and low cash, investors prefer predictable companies like CocaCola and Gillete. As I’ve read here at MDN, they don’t buy the present, but the future. Unless Apple has something more substantial to show at short time, the price is right. Not that Apple is doing bad at all. They are consolidating their position to what matters ahead: The Cloud, beyond manufacture’s strategies, etc. Right now, competition is at its heels, biting some chunks. And that hurts.

  7. I know a lot of people who invest in stocks but really dont know a lot about PE ratios and valuation and when it comes to AAPL they always say the same thing. The price per share is too high. Any investor who knows about stock valuation is aware that a split changes nothing but a 10 for 1 split would bring in a substantial amount of casual investors. I would like to see a split and a more aggressive buy back.

  8. It’s very simple. The #1 fundamental business creed is “Innovate or Die!” It is based on the business formula for success being to find a “need” and fill it. Apple has become their own “Me too!” company. Nothing new. As such, their stock becomes nothing new, too. No mystery.

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