“I don’t think it’s a really good idea to sell Apple stock on September 9th,” Alex Cho writes for Seeking Alpha. “The idea of locking in quick capital gains from a tax standpoint isn’t a good idea. Secondly, investors should own Apple with the anticipation of earning respectable investment yields over a longer timeframe.”
“Day trading may be profitable for some, but day trading is reserved for those who have access to brokers that offer extremely low rates and great execution. The same day trader also pays for cutting edge news terminals from Bloomberg, paired with strategies for mitigating capital gains tax (like being domiciled in a different country [than the U.S.]),” Cho writes. “If these kinds of benefits aren’t made available to you, then you shouldn’t be timing the equity market, unless if you’re rebalancing your portfolio to meet your risk profile/investment objective.”
“After a 58.93% move from its 52-week low, it may sound prudent to start cutting back your position,” Cho writes. “But if you really think about it, the growth story, paired with the present valuation is still appealing.”
Read more in the full article here.
Related article:
Should you sell your Apple stock on September 9th? – August 25, 2014
iPhone 6 is already in the price and so is expectation that Apple will execute flawlessly with release to China included in the initial release.
What is not priced into AAPL is the potential for additional services that have been mentioned but very little substance such as payment service (improved ecosystem) , credit card service (improve margins as it won’t have to pay a cut to credit card companies and a better use for some of its cash hoard), Sapphire glass for iPhone, iWatch release this year.
Long term AAPL holders will not be silly to cash out and end up paying a big % to the tax man. I intend to use some of the upcoming divd and buy Sept 12th $96 PUTs. If AAPL does surprise then all I am risking is some future divd, if it does drop then I will sell my PUTs to offset some of the paper loss and more importantly not give up anything to the taxman.
I couldn’t disagree more about the iPhone 6 being priced in. I think that’s the general opinion, but no one knows the impact of this device on Apple’s earnings going forward. I believe this release will be bigger than anyone is expecting, even Apple. There’s a HUGE pent up demand, bigger than the market realizes. Everything else will be gravy on the bottom line.
$110 would be a nice point to sell some stock for me but I wonder how long THAT might take?
Sooner than you think. There’s nothing better to put your money into, including a bank,
Wish I had a crystal ball. In its absence, I’m taking no action. The dividend is good, the company wickedly strong, and the prospects terrific.
I’d just put the proceeds in a passive index fund anyway. And I don’t feel that old yet.
Keeping mine, if you sell you are crazy! Especially since the stock split and the shares you have now! I’m 33 and in it for the long run!
AAPL is racing to $120. Don’t sell so soon, be patient and you will be rewarded handsomely.
I’m waiting for it to go over $124. At that point my position in AAPL will be worth over a million! Thanks Apple.
In 2003 I bought AAPL at roughly $1 per share (split adjusted). Tell me today at $102 that over the last 10 years, buy and hold hasn’t worked.
Oh, pleeze, more technical jibber-jabber. This guy is like so many Anal-ists over the years who try to play technical games and prognostication with AAPL.
The guy didn’t say a word about Yosemite/iOS8 and the effect this might have on sales and revenue. These OSes will have a significant impact.
AAPL succeeds because of Apple (and customers), not because of some computer-driven trend line or numerically concocted predictions.
I am. as I have since 1997, holding my AAPL after the product announcement(s), Mr. Cho. But thank you for the heads-up!