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macfantn · Oct 20, 2009, 07:39 AM

10 shares baby!!! Woo Hoo!!!

Eug · Oct 20, 2009, 07:55 AM

Good luck. Tough time to buy though, since it's at a long time peak.

macfantn · Oct 20, 2009, 07:59 AM

any chance of the stock AAPL splitting? One can wish right? I am hoping it goes up with the holiday sales and possible new products too. I am not looking for the short term though, plan on keeping it for a while. I may buy more but wanted to start small.

Laminar · Oct 20, 2009, 08:38 AM

I remember when it was at $85, I tried to buy some but didn't like the web trader I tried, so I gave up. Oops.

Eug · Oct 20, 2009, 09:02 AM

Originally Posted by macfantn

any chance of the stock AAPL splitting? One can wish right?

Possible if it stays well above $200 for a long time, but that doesn't guarantee better returns by any means.

Furthermore they may decide they don't want to do a split. eg. GOOG.

I am hoping it goes up with the holiday sales and possible new products too.

Well, even with new products, it can't just be good holiday sales. It needs to be stellar sales that will outstrip expectations. Sometimes when Apple hits a record, the stock drops, because although it beat Apple's own expectations, it doesn't meet consensus analysts' expectations. Analysts have long since learned that Apple likes to sandbag its earnings forecasts.

I am not looking for the short term though, plan on keeping it for a while. I may buy more but wanted to start small.

Nothing wrong with that. Plus, with just 10 shares, it makes more sense to hold longer since with smaller investments the commissions can eat up a higher percentage of the profits if you trade a lot (if the commissions aren't not very low that is).

osiris · Oct 20, 2009, 09:08 AM

I bought @ $13.00 !
but sold at $85.

Eug · Oct 20, 2009, 11:45 AM

AAPL now back under $200.

P.S. AAPL's market cap is almost $179 billion. That makes it bigger that Google, IBM, AT&T, Cisco, etc.

Personally, I'm not convinced that's justified.

P.P.S. Dell doesn't even hit $30 billion in market cap. Ouch.

Oneota · Oct 20, 2009, 11:56 AM

Originally Posted by osiris

I bought @ $13.00 !
but sold at $85.

I wanted to buy $1,000-$2,000 worth of stock back in 1998 when it was pretty close to its all-time low, but I was still in high school at the time and my mom didn't think it would be a good idea. Still being a minor, I didn't really have much choice in the matter.

Too bad, too, because it would have paid for college and the down payment on my house.

chabig · Oct 20, 2009, 12:04 PM

Of course the current market cap is justified. Nobody makes money like AAPL, and the room for growth in both computer and phones is astonishing. They should soon pass Microsoft and deserve to be number 2 to Exxon. Longer term I could see Apple as the most valuable company on the planet.

The Final Dakar · Oct 20, 2009, 12:05 PM

I need a Steve Jobs health scare so I can pick up some stock.

turtle777 · Oct 20, 2009, 12:17 PM

Originally Posted by Eug

AAPL now back under $200.

P.S. AAPL's market cap is almost $179 billion. That makes it bigger that Google, IBM, AT&T, Cisco, etc.

Personally, I'm not convinced that's justified.

I'm with you on this.
Sounds like an awful high valuation. I think it's time for a breather for AAPL.

-t

tooki · Oct 20, 2009, 01:15 PM

Umm, it had its breather when it sank back to 130ish about 2 years ago. It came crashing from $200 around January 2008 to around $130 within 6 months. In Jan 08, $200 was too much, definitely. Now, $200 is deserved, what with Apple doing this well despite the economy.

osiris · Oct 20, 2009, 02:00 PM

Originally Posted by Oneota

I wanted to buy $1,000-$2,000 worth of stock back in 1998 when it was pretty close to its all-time low, but I was still in high school at the time and my mom didn't think it would be a good idea. Still being a minor, I didn't really have much choice in the matter.

Too bad, too, because it would have paid for college and the down payment on my house.

Yes, it's killing me. I could have had a mansion, a yacht, and a string of polo ponies.

Eug · Oct 20, 2009, 04:06 PM

Originally Posted by tooki

Umm, it had its breather when it sank back to 130ish about 2 years ago. It came crashing from $200 around January 2008 to around $130 within 6 months. In Jan 08, $200 was too much, definitely. Now, $200 is deserved, what with Apple doing this well despite the economy.

Well, I disagree. I think $200 is high. Not crazy high, but high.

I think there is room to go up, but I wouldn't necessarily count on it, and actually favour it going down somewhat.

E's Lil Theorem · Oct 20, 2009, 05:06 PM

AAPL has a history of splitting their stock. I think if they can stay in the $200s for another couple of quarters (maybe even reach some analysts projections sooner than expected), there's a good chance that Steve will split it to bring down the share price so that regular "joes" can invest in AAPL again. GOOG, on the other hand, decided from the git go that they didn't want to split their stock ala BRK.

As far as the stock being overvalued, I don't necessarily agree. It's not uncommon for profitable tech companies to to have a PE of 30+ (e.g., GOOG, AMZN). This puts AAPL right up the low 200s given their Q4 numbers.

Art Vandelay · Oct 20, 2009, 05:21 PM

Don't expect a split again since when asked Apple stated in a recent conference call that they don't plan on splitting again.

E's Lil Theorem · Oct 20, 2009, 05:23 PM

Originally Posted by Art Vandelay

Don't expect a split again since when asked Apple stated in a recent conference call that they don't plan on splitting again.

Oops, haha. Never mind my post, then. Do you know when they said it?

Art Vandelay · Oct 20, 2009, 05:36 PM

I don't remember which one but they implied that they're now following the Google model when it comes to their stock.

sdilley14 · Oct 20, 2009, 06:48 PM

Originally Posted by tooki

Umm, it had its breather when it sank back to 130ish about 2 years ago. It came crashing from $200 around January 2008 to around $130 within 6 months. In Jan 08, $200 was too much, definitely. Now, $200 is deserved, what with Apple doing this well despite the economy.

I agree 100%. Back in 2007-2008 when it was around $200, it was valued based on more hype and speculation than anything else. I remember it making 10-15% gains and losses back and fourth on a daily basis, which is just ridiculous. The price seemed to hinge daily on whatever iPhone rumor was floating around at the time. It has since made the proper market corrections and has climbed steadily ever since hitting its valley back in 2008. Just my opinion though...

turtle777 · Oct 20, 2009, 06:57 PM

Previous high PEs were more justified, because Apple followed the accounting rules of realizing sales of iPhones and ATVs over 24 months. This made future earnings more "stable", because Apple would have sales and income, even if everybody stopped buying iPhones today.

The accounting rules was recently changed, so now they realize all iPhone sales right on day 1.
This makes a high PE less justified than in the past.

-t

sdilley14 · Oct 20, 2009, 07:06 PM

That is true. And I honestly don't quite understand that yet and haven't seen enough numbers to form an opinion as to whether this is a good reflection of their true earnings or not.

turtle777 · Oct 20, 2009, 07:13 PM

Originally Posted by sdilley14

That is true. And I honestly don't quite understand that yet and haven't seen enough numbers to form an opinion as to whether this is a good reflection of their true earnings or not.

"True earnings" or not is relative and subjective. They always stuck to the rules.

Let's put it like this: the old rules were more conservative and understated current earnings and earnings potential.

-t

Art Vandelay · Oct 20, 2009, 07:30 PM

Originally Posted by turtle777

The accounting rules was recently changed, so now they realize all iPhone sales right on day 1.

They haven't adopted the changes yet. They have until the first quarter of 2011 to adopt.

turtle777 · Oct 20, 2009, 07:31 PM

Originally Posted by Art Vandelay

They haven't adopted the changes yet. They have until the first quarter of 2011 to adopt.

Ok, I see. I thought they already did.

-t

Art Vandelay · Oct 20, 2009, 07:48 PM

They could have but they stated it is complicated to make the change and they're not ready to yet.

macfantn · Oct 23, 2009, 07:54 AM

Ok I have about $190 left to invest back into stocks, can't get another share of apple. Can someone recommend a cheaper stock maybe in the $10 range that I could pick up close to 20 shares.

Big Mac · Oct 23, 2009, 08:04 AM

Originally Posted by tooki

Umm, it had its breather when it sank back to 130ish about 2 years ago. It came crashing from $200 around January 2008 to around $130 within 6 months. In Jan 08, $200 was too much, definitely. Now, $200 is deserved, what with Apple doing this well despite the economy.

What about its breather when it fell below $80 (I believe) during the crisis earlier this year?

I've been following AAPL since 1994. I remember during the dark ages right before the Second Coming of SJ discussing with my best friend from high school how ridiculously cheap the stock was at $13. Unfortunately, I didn't have that much money to buy in at that time. I did buy 16 shares that I held on to for years and sold before any substantial run-ups. I also traded AAPL a few years ago, which was fun and profitable but got too expensive to do when it went above $100. Ah, memories.

Congratulations of getting a little taste of AAPL. My advice to you, Macfan, is not to attempt to trade it. You bought in at a peak and you have a handful of shares anyway, but that's okay if you can hold for a decade or two. I would have done far better with what I originally owned if I had held for a decade.

sdilley14 · Oct 23, 2009, 10:03 AM

Originally Posted by macfantn

Ok I have about $190 left to invest back into stocks, can't get another share of apple. Can someone recommend a cheaper stock maybe in the $10 range that I could pick up close to 20 shares.

FNM, FRE, C, BAC

Say what you will about these companies. I know the names are scary these days because of what they've gone through, but as far as their stocks go, they are at an historical discount now. I think they're worth some risk if you intend to go long on them.

ort888 · Oct 23, 2009, 10:50 AM

Buy high, sell low... that's my motto...

turtle777 · Oct 23, 2009, 10:52 AM

Originally Posted by sdilley14

FNM, FRE, C, BAC.

Seriously, worst advice EVAR.

Buy some gold or silver miners. You are leveraged to rising price of gold and silver, and hegded against inflation and bankruptcy of the US financial sector.

-t

Mrjinglesusa · Oct 23, 2009, 12:27 PM

SOLD my remaining shares of APPL stock yesterday. Bought in at $60, $80, $100, and $120. The $60, $80, and $100 were long gone, sold the $120 yesterday. Thanks for the nice profits Apple!

I will probably consider taking another position in APPL when/if it falls below $150. For now, I'm happy with the gains I made on my APPL positions over the past 5 years.

Now I have to convice my wife to let me use some of the profit to buy a new iMac.

sdilley14 · Oct 26, 2009, 12:20 PM

Originally Posted by turtle777

Seriously, worst advice EVAR.

Buy some gold or silver miners. You are leveraged to rising price of gold and silver, and hegded against inflation and bankruptcy of the US financial sector.

-t

I'm not saying load your entire portfolio with those, but if you want to invest with relatively little cash, and you're ok with taking some risk, these aren't bad stocks to buy. They're at the lowest prices they've ever been. Do you honestly think they are going to stay this low forever? I'm not saying they will bounce back to the peak prices they were at, but I can certainly see this all making a considerable comeback over the next 5 years.