“With apologies to the many fans of the late, great Patrick Swayze … nobody puts Apple in a corner,” Paul R. La Monica reports for CNNMoney. “After a tough couple of months, Apple investors — like Baby and Johnny — are once again having the time of their life.”
“The stock hit its highest level since late July on Wednesday. It’s gone from Gala red to Granny Smith green in the process. Shares are now up 12% this year,” La Monica reports. “That’s a huge turnaround in a short period of time.”
“Apple is now only 8% below its all-time high from April,” La Monica reports. “If you were lucky/brave enough to buy Apple at the height of the market panic back on August 24 — when the Dow (which includes Apple) was in the midst of a 1,000 point sell-off — then you’re sitting on a nearly 35% gain.”
Read more in the full article here.
MacDailyNews Take: As we wrote back on August 5th:
We’ve seen all this before. Many times.
“At the most basic level, it’s extremely simple: Pump, then dump. Foment, then buy. Rinse, lather, repeat as the SEC sleeps.” — MacDailyNews Take, April 26, 2012
Let’s look at the actual facts: Apple sold 47.5 million iPhones in the third quarter, up 35 percent year-over-year. But analysts had expected around 49 million units. Analysts also expected growth of more than the mere 35% that Apple posted (in the June quarter, no less) and wanted guidance of more than $51.13 billion in the 90-some-odd-day quarter prior to holiday shopping season in which Apple’s all-time record for the September quarter, so far, stands at $42.1 billion, but Apple only gave guidance with a top end of $51 billion, not the $51.13 billion for which some analysts had hoped.
This is the basis for all of this so-called “worry” over Apple.
The facts and the (Mis) comprehension of idiot writers and analists, yeild this knd or babble.
Fact: Apple is the undervalued stock of the century.
Apple is the only company making money hand over first.
Apple is the only company that cares about quality first.
apple is the inly company in the world that has an army of life long loyal customers that will never heed the FUD and will always fed the hand that feeds them.
Analysts’ purpose is to line their pockets with money. Apple’s purpose is to change individual lives with their products. The two will never mix.
I was “lucky” enough to buy back in the 90s when stock was $12. After allowing for subsequent stock splits, that was less than $1 in real terms.
That’s exactly what I did. Precisely when the pundits were declaring Apple doomed.
This is an object lesson to be greedy when others are fearful. In the short term, the valuation of a company’s stock price can be driven by sentiment. But in the long term, earnings and cash flow growth drive a company’s stock price. It’s a good reason to tune out the noise and hype, and focus on the fundamentals of the company’s earnings. When you see a great company’s stock going “on sale” because of gloom-and-doom prognistications, don’t be angry. View it as a buying opportunity.
For a long-term investor of a company’s stock, these swoons are often ripples in the larger growth trajectory of a multi-year stock price chart. But they do create opportunities for the astute investor. So don’t despair. Use the foolishness of pundits as a moment to seize.
“The stock market is a giant distraction to the business of investing.”
– Jack Bogle
It’s chump change. I bought AAPL at $11, and sold at an over 5000% profit. It made me a multimillionaire. AAPL cannot ever perform at this level again. People who buy in now may get a modest profit, but as this stock is now subjected to massive manipulation by the market, the risks are too great for any possible reward. Put your money into GE or some other solid blue chip.
This probably doesn’t matter to loyal Apple boosters but in comparison to Apple’s 12% gains, Amazon has run up slightly over 100% both YTD and 52 weeks, leaving Apple shareholders far, far behind in the dust despite buybacks and dividends. Amazon will also do the same in 2016 while Apple’s stock goes nowhere. Nearly every day Amazon stock climbs while Apple’s stock roller-coasts endlessly. Apple is still considered a doomed company while Amazon is said to have unlimited growth and no competition at all. Potential investors will always go with unlimited growth companies so Apple will remain forever undervalued.
Tim Cook may be a good CEO but he’s no Jeff Bezos when it comes to giving shareholders spectacular returns. Amazon is practically a profitless company and Apple is the wealthiest public company on the planet. If Apple really wanted to grow its business, it certainly could even far better than Amazon. The future isn’t written for Apple and it’s possible the company could grow if they wanted it to but it will likely never grow like Amazon is because that’s all that Jeff Bezos is concerned with.