Good point, but the stock is also not going to bounce to $600 either. There are safer 3% dividend stocks to own. growth is slowing industry wide and is not an apple specific thing. I am still up, but starting to realize my money might be put to better use elsewhere.
I may hold to March to see if they will do two things Large phone and larger pad. Those might be nice. If they increase their buy back you better run because they are not going to put the money to work on product.
I have been in Apple since it plummeted last year. The stock was undervalued compared to all it's peers then and still is today, but they proved this week that they are done with any real growth catalyst to unlock that value. They really laid an egg. They should have simply released that phone with no event build up because there was nothing to have an event about. I believe the market will correctly price apple around $550, but the idea of it going over $600 and staying on a growth track are done.
I do believe they will unleash product in March and that might be the time to take profits and move on. Atleast in the meantime I will get a nice dividend. The activist are going to start stomping their feet too. They killed any momentum. Retail investors should run!
That is normally what you should do. Tech is a challenging sector that usually under performs the market. It is not an apple problem as much as an industry problem. Innovation is slowing and that is normal. History has showed this time and time again. Apple is king of a dying sector. They are done as a hyper growth company, they are a range bound value play with 3% dividend. There are safer value plays with 4% dividend out there.
Your right, but is your money better off elsewhere. It is not an apple problem that they are not going to continue growing at the same pace. It is not their fault the competition is catch up. The reality is the innovation cycle has slowed across the board. I think great company and will continue doing well, but price bound between $450 to $550 is not what I am looking for as an investor.
I agree, but what good is $550. If I want a 3% dividend and a stock that is range bound. I will go to a safer sector where stock price is not tied to perception and product releases every 12 months.
I am a value investor and not product fan. I own an S3, but I also own 300 shares of apple. On every measure, Apple is a cheap stock. The only arguemet you can make against that is shrinking margins. But the margin are not shrinking that fast for the stock to be trading at these levels. Simple thesis for why I own this company.
This morning at 6am, I went for a run. I live north of Chicago. I went by an AT&T store where about 15-20 people stood in line. I then pasted a T-Mobile store with about 8 people in line. This shocked me, because last year, I did not see this. I am not sure if it is a greater renewal cycle this year versus last or if Apple hit a nerve with some features in the 5s or 5c, but I hope this is the beginning of some momentum. I get lines at Apple stores are common, but I thought last year brought the end to it (at least everywhere except apple stores). For every person standing at a tiny ATT store in a tiny community north of Chicago there are 50k that preordered on line. I pulled that number out of the air, but if there are still that many people with no shame, then there must be millions secretly desiring these phones in the privacy of their homes.