When to sell your Apple shares

“We can safely assume that the management at Apple knows what lies behind the thick corporate veil better than anyone else,” Ugly Duckling, a mutual fund analyst, writes for Seeking Alpha.

“What we do know is that [Apple CEO Tim] Cook promised new products, and the leaks of parts and rumors from the supply chain has confirmed it,” Ugly Duckling writes. “The day Apple stops buying back its own shares is the day you should sell.”

Ugly Duckling writes, “Until then, you can rest assured that the shares are undervalued.”

Much more in the full article here.

34 Comments

        1. My point being that if the initial reply was why sell, as in just keep them forever, then why buy them in the first place? Until you sell them they are effectively worth nothing. People sell them when the value either peaks, or when they need the money more than they need the shares.

          1. And those who have accumulated enough shares can afford to sit on them and every now and them sell when they need cash for something, as opposed to those that buy to profit asap, either to cover their margins or option calls.

      1. Well I first bought a bunch of AAPL when they cost me $49 and I rounded my purchase up to 1,00 shares when they were $57. I held them until Sept 2012, when I sold quite a lot of them to buy the house I’m now living in. I now don’t have a mortgage, don’t pay rent and have no debts. That seems like quite a good reason for buying AAPL.

        Apart from the shares I bought and held, I have a second bunch of AAPL that I sell and buy back again at certain times. When I am expecting AAPL to drop for a stupid reason ( good financial results or a new product launch ), I sell and then buy back again shortly afterwards when the price drops. The last time I sold them was around Christmas time, for $560 and I set a triggered buy price of $499, which happened in late January. So I ended up with more than 10% extra shares, which have now gone up 25% in well under six months, plus they pay a solid dividend too. That seems like another good reason for buying AAPL.

    1. Because share price will drop because of the same reason when it dropped from $700 to $380 and because you want to buy back again after it drops because you want to….. make money?

      Yes, the challenge is when to sell and when to buy back again.

      Good luck!

      1. So what, in the long run if you invest on a solid company that will only continue to grow and expand, one that has no peers and you’ve done that for years, you avoid taxes on your globs by staying put and reaping the awards of splits and dividends dummy.

      1. My broker advises me to continue with stop orders.Today I have just upped my stop from $550 to $575. When AAPL goes to $625 I will raise it to $600. I really hope I never have to sell that way, but it sure beats watching it go down to sub $400 and wondering where to get out. You can cancel it or change it anytime with just a phone call. Try it and you will never be way way too late, you will be just a bit late.

          1. No, of course not. Just a standard feature of trading. My broker is with Smith Barney, he is in touch with me constantly. I only pay for buts and sells, all advice is included. Of course yours may be different, I became a select client once my account exceeded a million. But even before I had these features available. I did not have a Senior Vice President advisor.

        1. If you and/or your broker don’t know when to sell, you should not have bought AAPL in the first place. A sell stop order will often sell your stock at the wrong time. (Remember the flash crash? People who had stop orders in place sold at a very low price only to watch their stock go back up later in the day to near where it was before the crash.) Each buy or sell order should be done with a conscious decision based on your current understanding of the strengths, weaknesses and value of the company as well as its business milieu.

        2. You might want to take a look at using ATR to set your trailing stop vice price.

          FYI. I was scalded by the readership here at the mere mention of being stopped out back in ’12 after after the share price breached 700 and began to fall. Didn’t hear the end of it for days. Knowing how the digital simians around here behave, I seldom talk about AAPL share prices anymore on MDN. It’s almost as dangerous as criticizing AAPL.

        3. Your broker is correct. Had many here been as wise in September 2012 they would not have lost their asses all the way down to $385. Then they would have been able to reenter, if so desired, at a much better (lower) entry point. And all the way back up to $601 would be pure gravy. Not just hoping to get back to even again. It’s just elementary investing. Nothing more.

        4. I’m also wary of stop orders. Apple is a very volatile stock and can fluctuate wildly for no good reason. The stock reach the trigger price for all sorts of non-Apple related reasons and your shares will be automatically sold at that price.

          One thing that I have noticed is how the market reacts to round numbers. There is often a rash of profit taking when the stock reaches 500 or 600 etc, so if you want to buy at around that time, you can often pick them up when the price drops after profit taking.

          When the price is falling, there is often a recovery at round figures too and you can buy on the undershoot. I guessed that the dramatic and illogical drop in AAPL this January would flatten out at $500, so I set a buy for $499.01 in the hope of there being a brief undershoot, which is exactly what happened – very briefly.

  1. It really depends on your perspective. If you’re into the buying and selling frequently then try to guess when the market will drop aapl. It will not be Apple who stop buying it will be the brokers. Apple will buy the stock when it drops not the other way.
    Me – I’m in for the long term. That doesn’t mean I will never sell the stock. I will sell it when I think Apple are no longer going in the right direction.
    I prefer my own advice. 750% up over 7 years is way better than any advisor can provide for their clients. By comparison Fidelity mutual funded max return around over the same period is 15% pa.

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