Gonna get cheaper

Radar Foster

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On the heels of an epic blowout Earning quarter, Apple is going to split their stock 4-1 at the end of August

at the current close of $425, the new stock price will be around $106...

although with the parabolic run , the shorts will drive this price to $500 so it will be roughly $125 / share

buy it , the only entity printing money at a more frenetic pace is the US Gov’t
 
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DAT

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On the heels of an epic blowout Earning quarter, Apple is going to split their stock 4-1 at the end of August

at the current close of $425, the new stock price will be around $106...

although with the parabolic run , the shorts will drive this price to $500 so it will be roughly $125 / share

buy it , the only entity printing money at a more frenetic pace is the US Gov’t
How do you go about buying stocks? Do you do it yourself or through broker?
 
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ruff

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Open a brokerage account. I like Schwab but there's a zillion others. Many offer commission free trading.

Regardless of Fred's recommendation tread carefully around Apple.

A great, well run company with good products. A very popular stock with funds, pension funds and consumers as an investment. Warren Buffet owns a lot of it. At current market and rate of savings there's nowhere to park all the money sloshing around. Therefore they represent a "safe" investment. Which, in part, may explain some of it's super high valuation and how they maintain it. However, if anything goes even slightly wrong, they will lose elevation really quick.


  • At current valuation and market share, how long can it keep growing?
  • Are they open to risk of competition or a disruptive technology?
  • How many new areas of business and scale of income, do they need to go into to keep their current growth?
  • Will they be as good in these new (but very different) services as they are building phones and computers? Many times that diversification which is not in the core skill of a company do not work well.
  • They may have to switch from being a growth stock to being more of a value company, which is more of an income stock.
  • At current valuation the company have to keep executing to perfection.
  • Apple is too big a part of the index which increases risk..

Not a risk free stock. Yet.....................who knows, they may defy logic and keep growing like gangbusters. After all: “Markets can stay irrational longer than you can stay solvent.”

However, it is hard to argue with success. Here is an article if you do want to buy it: https://investorplace.com/2020/07/should-you-buy-apple-stock-after-its-august-stock-split/
 
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Jimmy L

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Like Larry I'll stick with my Harley stocks.

MOVING TO CHINA BABY!
 
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Matt Wood

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For 1. The parabolic rise of the shorts getting squeezed out like Fred was saying.
Damon...dumb it down please. That doesn't tell me anything. I'm still pissed that you never got back with me on my question several weeks ago.
 

Radar Foster

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Damon...dumb it down please. That doesn't tell me anything. I'm still pissed that you never got back with me on my question several weeks ago.
It’s similar to a short squeeze

in addition to people that buy , hold and trade stocks, there are others that buy and sell options on stocks

options are obligations to either buy or sell a stock at a specific strike price, in some cases it’s a way to synthetically OWN the stock

some people do this as a hedge against their stock position and others speculate the direction of a stock moving either up or down

in the case of Apple, the people that bought and sold options ( the option markets is YUGE ) and bet AGAINST a rise in Apples stock price are now forced to cover their position if They sold short




Ofer’s above post lays out several PermaBear scenarios for avoiding or being cautious regarding Apple

they haven’t really changed in the last 8 years since I started buying Aapl in 2012


their cash pile is close to $200 billion and They have retired 1/3 of their outstanding shares over The last 8 years

I bought my first shares in the $60s and bought more last week at $383

the Apple story Is far from over...
 

Nomad74

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What Fred said. I don't have the time to go into all that. I gotta go mow lawns at the shop before it gets too hot.
 

FredC

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@Radar Foster what growth do you expect after the split

should I dump my (tiny) position in apple and move it to something like AMD
 

Radar Foster

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@Radar Foster what growth do you expect after the split

should I dump my (tiny) position in apple and move it to something like AMD
:eekk: If Apple was trading at AMD Price to earnings it would trade for 2000 / share


the drivers are going to be customer retention, replacement and services


the 4-1 split is going to drive the stock price higher,


they have a mountain of cash and will continue retiring shares with their buyback , which raises its earnings per share
 

Radar Foster

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One day, Apple will be trading at $.01/SH. Might be tomorrow. Might be 100 years from now.
lmao


a 1.5 trillion company is going to worth nothing?

I can’t say I’m concerned about ‘ 100 years from now’ but I can appreciate Vanguard Index investing . I trade exclusively through Vanguard and hold several of their Index funds

lowest mutual fund fees in the industry which translates to the highest returns


I guess aim just bullish on Apple cause its returned nearly 500% over the last 8 years which is slightly higher than my Vanguard Life Strategy amd S&P500 funds :biggrin:
 

jcooper

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So buy now at $438?
In my opinion, yes now... If apple is something you want to hang onto(long term). Can't have a better stock if starting a portfolio.

Look at it this way, what's more affordable for broke d@#k normal people who want to invest, 400$ for a share or 100? Again, in my opinion. When that price comes down(after split), it wont be down for long.

Start slow, buy a share or two, don't go nuts. It's not cheap and winter is coming!:rockon:
 

ruff

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"Winter Is Coming" is the motto of House Stark, one of the Great Houses of Westeros. The meaning behind these words is one of warning and constant vigilance.

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Fred, I want to make sure that Matt got it right:
Would you say that "buy high and sell low" pretty much sums it up?
 
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