“It often pays to be a contrarian in the investment world; it’s a good way to pick up quality investments at a cheap price,” Thomas Scarlett writes for TheStreet. “But sometimes the contrarian instinct can go too far, as it has recently with Apple.”
“Apple is to 2016 what General Motors was to 1956: the company that defines the times we live in,” Scarlett writes. “But a rare spate of bad news has caused many analysts to turn against the company.”
“Have no fear: Apple is still a great company and a superb growth investment that is a solid choice for your retirement portfolio. Even better, it’s now selling at a bargain price, having declined more than 10% over the last four months,” Scarlett writes. “Thanks to the recent price slide, Apple’s price-earnings ratio is now below 10. That’s a ridiculously low level for the dominant company in America’s leading industry.”
Read more in the full article here.
MacDailyNews Take: Each rare island of sanity that pierces this endless ocean of lunacy is an overwhelmingly welcome respite.
Apple has continued to rise, just not fast enough for some.
I think there is also a feeling of jealousy, schadenfreude and wanting to punish the company for it’s unbelievable & outstanding success. (As opposed to doofusly awarding companies like Amazon who make precious little profit.) But you can’t keep a great company down for long. AllI ask is they hit $200, is that so wrooong?
Apple seems content with punishing itself with inadequate and sloppy software, hardware lacking current technologies, and meager leadership.
So get a Microsoft computer and go away.
I followed this advice long time ago and never had any regret.
Still have to deal with some OS X and iOS relicts for some of my family members who don’t know how to get back easily their medias from Apple after they went full iTunes but they will probably also soon return in MS/Google’s world.
Inadequate, sloppy, lacking and meager with a dash of bitterness and hate are all qualities you can most relate to eh Poster Joe from Doofus, MO?
Does everyone who does not share your narrow minded, bigoted, irrational, and unimaginative thoughts a spewer of “hate?. It must be a sad existence you have to sequester yourself in a world of monotonous drivel and willful ignorance.
Well I suppose I shouldn’t follow your lead example then. Reading your bitter posts is the very definition of doofus hatred.
The economy feels downfall, as Intel, IBM, Microsoft all have seen declined sales.
However, besides that, there is certain saturation of most markets Apple is in; even iPhone: it has to be mentioned that introducing iPhone 6 in two size has given Apple abnormal one-time growth; otherwise, the markets were growing quite slowly.
So even if economy will feel itself better and Apple’s sales would stop falling — it will not be healed “soon”, not at least before calendar Q4 or even next year — then still there is issue of growth. From 2017 and onwards, Apple would see either no or quite modest growth even in healthy global economy until it will add cars.
I must have lost this one. When did Apple fall…?
Since the Tim Cook era became apparent or, if you prefer recent history, the devaluation of Apple stick secondary to decreased profits.
Since Tim Cook took over my $20,000 purchase of AAPL is now worth over a million dollars. Go play with your Dell.
Your stock increased 5,000% in value? Really?
I can’t speak for anybody else, but when I bought my current house in 2012, the Apple stock that I sold to pay for the house had increased to just over eleven times the price I paid for it. I was delighted with that performance and have been buying more AAPL ever since.
For many of the years that I held Apple, my accountant was always advising me to sell AAPL because he had heard that the company was doomed. Ironically a company that he was suggesting was a better alternative went belly up and he personally lost £200,000 ( $275,000 ).
The Apple share price on 4/16/03 was $0.93 per share. At today’s price, those shares have appreciated 9,702 %. It represents a Compound Annual Growth Rate of 71% each year for 13 years.
The calculation excludes dividends paid out on those shares since 2012, so total return are higher. The annual dividend payout on the cost of those shares now equals 2.46 times. That is a 246 % dividend payout on cost.
Anyone who bought Apple shares during the following year (as prices began to rise) would still be sitting on appreciated share values of roughly 7,500 %. And annual dividend payouts today would still equal nearly twice the cost to by those shares.
Returns vary depending on when (and what price) shares were bought. But there have been ample opportunities to buy Apple shares at good investment value over the past 13 years. At least to those careful investors who pay attention, take the long view, and don’t listen to charlatans, phonies, and talking heads.
So no, Joe, a 5,000 % appreciation on Apple shares is not hard to believe, at least to long-term, buy-and-hold, value investors.
There is almost zero chance of shareholders seeing Apple’s share price rise. Tim Cook can’t do very much for shareholders with Apple’s stockpile of cash tied up overseas. Besides, I’m sure most big investors already believe Apple is in decline and they’re not going to take any risks of throwing their money away. There are so many other companies who give far better returns than Apple without needing to meet the expectations Apple is required to meet. Apple’s share price has barely moved for a year and a half while the market has gone up considerably and most other tech stocks are performing quite well. I think that’s a pretty good indicator that Apple isn’t worth putting money into. I don’t know why it’s worth boasting about Apple stock being so cheap. They claimed it was cheap when it was at $105 and now it’s cheaper still. Will people still be boasting about it when Apple hits $82? Tim Cook is running Apple’s value into the ground as far as shareholders are concerned.
Apple has to be the biggest investment joke on Wall Street. Honestly, over the last five years even Yahoo has outperformed Apple in share gains and Yahoo is considered a train wreck. No one at Apple has a clue on how to make the company attractive to investors. One could almost think Apple is trying to discourage anyone from investing in the company so that the top executives get to keep whatever money Apple makes.
It is important to understand that the market promotes stocks so that clients will buy into them.
They promote stocks based on hype rather than performance. Apple outperforms every other company in the world but is not producing any hype to speak of.
Over the last 5 years, Apple stock has doubled but then google, FB and Netflix have growth 250%.
Just remember there are a lot of stocks that have lost of lot of value.
Apple is a good long term investment (especially now) since the fundamentals are great.
Get off the amphetamines and figure out that Apple STILL made a MASSIVE profit last quarter, its historically weakest quarter of the year. Apple doesn’t have to be as MANIC as you are to THRIVE. And yes, Apple continues to thrive. 😀
If P/E really matters anymore, how does one explain AMAZON’s
recent rise (P/E = 539)?
Are we in the Bizarro world now?
Shareholders do not control the market — the customers do. Don’t let shareholders manipulate your purchasing decisions!
I bought my iPhone 6s a week ago, and my Apple Watch a month ago, and I have no regrets at all. The devices work wonderfully and if you’re thinking about buying, now’s the time to do it. Don’t wait for Apple to release the “next-gem” product, because you’re just doing yourself a disservice by waiting.
You deserve a new Apple product. Go get it!