“In September 2012, Apple closed at a record high of $702.10; the stock proceeded to fall to below $400 per share and more than 40%, even as top Wall Street analysts were calling for a run to $1000,” Douglas Ehrman writes for Seeking Alpha. “Monday, Apple shares closed at $100.53 per share, making it the all-time highest close ever on a split-adjusted basis. The obvious question is where do we go from here and is Apple set for another precipitous fall?”
“Unlike the last time Apple was in this position, there are a collection of factors that I believe make the stock poised to climb significantly higher,” Ehrman writes. “The last time Apple shares were at all-time highs, they were trading at over $700 per share. This creates a significant mental barrier, particularly for a stock that has a greater retail following than most in its peer group. The recent 7-for-1 split, which, coupled with a strong earnings release, started the current run, has had the desired impact. While the stock is at a historic split-adjusted high, Apple shares above $100 per share does not seem that unusual.”
Ehrman writes, “The real story of why Apple has the potential to climb to new heights is the upcoming release of the iPhone 6, as well as the potential introduction of a new product line in the iWatch. Unlike the iPhone 5, the iPhone 6 is expected to give consumers a major upgrade in the one area that Apple has been long criticized: screen size.”
Read more in the full article here.
It’s a dicey call. Nobody wants to ride it back down again.
Index funds look better all the time.
Yes! Time to sell those iPhone 6 4.7 / 5.5 , iWatch , big iPad ASAP!
I’d have to pay too much in capital gains to sell my AAPL so I’ll just enjoy the dividends and give the stock to my kids; they can deal with it.
Half of my AAPL is held inside Roth and regular IRA’s so I can move it in and out with impunity.
Phony.
If it were Google or Netflix, no one would even think about selling, but Apple, well, you know the drill. It’s always, Apple has gone about as high as it can possibly go. If Apple is only able to sell around 75 million new iPhones by the end of the year, it’s all over for Apple shareholders.
/s
Would definitely hold on – AAPL has bright future. Unless, you are overly invested in it and lack diversification. In that case, you probably learned the pain of lacking diversification during AAPL’s slump, and should take the opportunity convert most of your stocks to index funds.
Bought more shares during the last ‘slump’ with the dividends.
To paraphrase Warren Buffett somewhat incorrectly, “The best holding period for a great company’s stock is forever.”
It really depends on how long you intend to hold any company’s stock. If you need to cash out next week, then maybe yes. But I agree with others here – I intend to hold Apple shares for decades, reinvesting my dividends to increase the number of shares I own.
Over time, I believe my patience will be greatly rewarded. As long as Apple and my other investments continue to grow their earnings and increase the amount of cash they generate OVER TIME, I can expect to see the value of my investments continue to grow. In short, my patience will be rewarded.
Stock valuations don’t move in a straight line. There are daily ups and downs. In nature, we see floods and draught that can impact how fast a garden will grow. But instead of dwelling on the day-to-day movements of stocks and markets, as foolish pundits do for a living, it’s better to step back and look at a stock’s chart over a period of 5, 10 and more years. What caused hysteria for a week is hardly a ripple when viewed in the context of the longer term.
So Hell yes, I will gladly hold my Apple shares, new highs or not. In fact, hitting new highs is often a signal of better news to come, not the advent of a precipitous fall ahead. stock market pundits are like chickens worrying about thunderclouds overhead.
Yes, we will have a correction at some point in the future. That’s a given. But I will patiently ride out the storm as I have in the past, because my holding period will go way beyond any market cycle. Instead of panicking, look at a stock market correction as a time to buy at a deep discount. That’s how the smart money makes its billions. And we can learn from the success of a man like Warren Buffett.
Wow. Time to sell AAPL. I’m wondering if there’s an accurate tally of how many times it has been time to sell APPL since 1999, when stocks were selling for under a buck (adjusting for splits). Silly me. I haven’t ever taken the bait. I’ll make more in dividends this year than I paid for my initial hundred shares.
Two weeks ago my Apple stock allowed me to become a paper millionaire. First bought shares in the mid-90’s and just held them. About 4 years ago I merged several 401ks I had from into a single IRA and invested 2/3 of the money in Apple, the rest in Amazon.
Apple may be the best run company in the world IMHO, on too many levels to count. The fact that they don’t follow the rest of the corporate herd is a strong plus in my book.
More proof – as if any were needed – that when an “analyst” posts an article with a question as the headline, the answer is always “no”.
As in “With Apple Over $100, Time To Sell?” “No.” (as in “No. No. No. No. No. No. No. No. No. No. No.”)
The real question is the extent to which the iPhone 6 and iTime are already built in to the price.
Haha, iTime. I actually like that better than iWatch.
Just forget the adjusted pre split price. It’s meaningless at this point. The investor see $100 a share and now there are 7 times the amount of shares out there. Apple could run right back up to $700 a share. Did apple stay or sink after their last split? And they were hitting highs back then.