This holds the key to timing Apple share purchases

“The time to buy Apple’s stock will be when Wall Street’s analysts begin revising their company forecasts upward,” Mark Hulbert writes for MarketWatch. “We’re not there yet. Not even close.”

“So far this month, according to FactSet, 40 of the 47 analysts in that firm’s database revised their earnings estimate for the company downward. And not one has revised his estimate upward,” Hulbert writes. “It’s hard not to be cynical about Wall Street analysts. But it turns out we can become better investors by understanding their behavior patterns.”

“The key, then, is to begin buying Apple shares only when there has been an increase for a couple of months in a row in the number of analyst upward revisions,” Hulbert writes. “If the historical pattern holds, chances are good that subsequent analyst revisions will also be positive rather than negative—propelling the stock ever higher.”

Read more in the full article here.

MacDailyNews Take: So, when the sheep stampede, follow their lead?

3 Comments

  1. Actually, the right time is just before “there has been an increase for a couple of months in a row in the number of analyst upward revisions.” Unfortunately, I don’t have a crystal ball, so I continue to buy when the price keeps dropping because I am convinced that the price will eventually go up. Apple plays the long game and most investors play the short game. The ups & downs make the ride exciting and scary, but if you keep your head about you, you can make a good profit.

    1. Sounds right to me. The time to buy is when there’s blood in the streets. I don’t remember who that’s from but I’ve followed that advice for years. The louder they scream about Apple being a bad investment, the lower the price goes, and the more I buy.

  2. Thank a heap, Carl. I believe now is a great buying opportunity to increase number of shares. R&D spending shows something is up big time. Think I’ll stay put yet again, despite Carl’s followers. Looking forward to iPhone 7 and don’t see Apple’s numbers really that bad…people are just spoiled because they were really extra good for awhile…emotional doomsday predictors…anyone here remember Laura Goldman?

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