Apple stock

[blazerboy30]

Apple's PE ratio has gone up quite a bit to hit that record high. It is now to almost 17. I believe it was down near 10 at one point, which seemed like a no-brainer purchase. But at a PE of 17 it isn't that obvious to me.

 

[BU54]

I bought 2k shares back when the stock was like $90 something years ago. I sold 500 when it was like $500 on the last big rise. The another 500 when it hit $600. I kept the rest, even when it dropped. I should have bought more when it was down to $320. I'm still kickin myself!

I thought about buying a few shares about a year ago when it plunged to $300 something but opted to buy other stocks with 4%-13% dividends. I'm making $550ish/month now by doing nothing.

 

[blazerboy30]

I thought about buying a few shares about a year ago when it plunged to $300 something but opted to buy other stocks with 4%-13% dividends. I'm making $550ish/month now by doing nothing.

You're also getting raped on taxes with that approach.

 

[BU54]

You're also getting raped on taxes with that approach.

Everyone gets raped on taxes reguardless. My net gain is still sweet. A helluva lot better than .1% APR in the bank.
I think I'm averaging 10% before taxes which is 100 years worth of interest in the bank.

 

[blazerboy30]

Everyone gets raped on taxes reguardless.

That isn't true. Almost all of Apple's recent gain has grown tax free. Plus, when taxes do come due on it, probably years from now, it will be capital gains at a lower rate.

 

[magnifier661]

Apple's PE ratio has gone up quite a bit to hit that record high. It is now to almost 17. I believe it was down near 10 at one point, which seemed like a no-brainer purchase. But at a PE of 17 it isn't that obvious to me.

Your approach is much better to signify the investment. I used my personal knowledge of the company and understanding of their business model. They aren't like a normal tech company. They have huge profits for their products.

I also agree with the dividend investment as well. It's much easier to hold shares until the profit is only capital gains. It's the best way to invest

 

[blazerboy30]

Your approach is much better to signify the investment. I used my personal knowledge of the company and understanding of their business model. They aren't like a normal tech company. They have huge profits for their products.

This doesn't make any sense. If you had bought Apple at a PE of 50, you would have lost money by now, even with your "knowledge of the company and understanding of their business model".

 

[magnifier661]

This doesn't make any sense. If you had bought Apple at a PE of 50, you would have lost money by now, even with your "knowledge of the company and understanding of their business model".

I didn't... I bought them when it was a $92 stock (before their 7 share split). Then sold off half of my shares during their climb years ago (@$500 and @$600). Then I held the stock, even after its big drop off. We've gone through this already. What I should have done is bought even more shares when it hit the $350 mark. My mistake...

 

[magnifier661]

And if I would have listened to you, I would have lost hundreds of thousand of dollars. 1,000 shares, when you told me to sell off, would have given me $350,000. Yes, I bought those shares for $92,000; but now these same shares are worth $746,000. I would have lost $396,000 in profits

 

[BlazerCaravan]

Buy and hold, bitches. Buy and hold.

 

[blazerboy30]

Buy and hold, bitches. Buy and hold.

But not individual stocks, bitches. Not individual stocks.

 

[blazerboy30]

I didn't... I bought them when it was a $92 stock (before their 7 share split). Then sold off half of my shares during their climb years ago (@$500 and @$600). Then I held the stock, even after its big drop off. We've gone through this already. What I should have done is bought even more shares when it hit the $350 mark. My mistake...

Like I said. You don't have any real strategy or insight into their business. If you did, there is no way you would justify a higher PE ratio today then you did when you were selling them at $350/share.

 

[blazerboy30]

And if I would have listened to you, I would have lost hundreds of thousand of dollars. 1,000 shares, when you told me to sell off, would have given me $350,000. Yes, I bought those shares for $92,000; but now these same shares are worth $746,000. I would have lost $396,000 in profits

Show where I said not to buy Apple. I never said to sell or not buy.

I said your "analysis" was crap, and I still stand by that statement.

 

[magnifier661]

Like I said. You don't have any real strategy or insight into their business. If you did, there is no way you would justify a higher PE ratio today then you did when you were selling them at $350/share.

Well, let's be thankful I didn't use your strategy among many in the business. I would be $350k loss in profits!

 

[magnifier661]

Show where I said not to buy Apple. I never said to sell or not buy.

I said your "analysis" was crap, and I still stand by that statement.

Oh you mean like these gems?!

Obviously it's being sold off. You're saying it's a buy. If people had listened to that reasoning months ago, they'd be down 40%.

This is ridiculous. Like Denny said, the value is whatever people are willing to pay for it. If you state so emphatically that the "actual" value is $500/share, then you should be putting everything you have into long dated calls with a strike of $450-ish.

Looks like the market is agreeing with me, at least for now. Apple down 6% in after-hours.

I would not suggest buying far-out-of-money options, either calls or puts.

Did you not say, "Don't go long with Apple?"

Fact is, the stock was at $350 when you went all "Don't buy apple". Now it's a $750 stock. Like I said... Glad I didn't listen to you

 

[blazerboy30]

Oh you mean like these gems?!









Did you not say, "Don't go long with Apple?"

Fact is, the stock was at $350 when you went all "Don't buy apple". Now it's a $750 stock. Like I said... Glad I didn't listen to you

You just posted quotes from me, and nowhere in there did I say to not go long Apple. I said you making predictions on future price, based on clueless analysis, was ridiculous.

The fact that you highlighted me saying "I would not suggest buying far-out-of-the-money options, either calls or puts" as evidence proves that you have no clue what you're talking about.

 

[magnifier661]

You just posted quotes from me, and nowhere in there did I say to not go long Apple. I said you making predictions on future price, based on clueless analysis, was ridiculous.

The fact that you highlighted me saying "I would not suggest buying far-out-of-the-money options, either calls or puts" as evidence proves that you have no clue what you're talking about.

Saying "I would not suggest buying far-out-of-money options" is advising not to go long. Also, you've said that the stocks are 90% emotionally driven. Obviously the outliers you think are worthy mean shit then doesn't it?

 

[Denny Crane]

It isn't advising against going long or going short. He says options far out of the money might expire worthless.

 

[magnifier661]

It isn't advising against going long or going short. He says options far out of the money might expire worthless.

Calls or puts are short term moves. I just used the long part of the quote so he understood what he said. Read his actual quote.

 

[blazerboy30]

Saying "I would not suggest buying far-out-of-money options" is advising not to go long. Also, you've said that the stocks are 90% emotionally driven. Obviously the outliers you think are worthy mean shit then doesn't it?

Damn dude. You have no clue what you're talking about. You don't understand a call versus a put. And you don't understand what "far-out-of-the-money" means.

 

[magnifier661]

Damn dude. You have no clue what you're talking about. You don't understand a call versus a put. And you don't understand what "far-out-of-the-money" means.

I've had enough sense not to listen to you regarding apple

 

[Denny Crane]

I did read what he wrote. "Far out of the money" means the stock has to move big in price for those options to be profitable. Calls being options to buy the stock in the future at a price you set today. Far out of the money calls would be for a price "far" higher than today's price. Put options far out of the money require the stock price to fall far by the contract date to be profitable.

Going long in a stock is buying it with the expectation the price will rise. Unlike options, there is no expiration date.

Your analysis is both speculation and impulse oriented.

If you invest all your money in Apple, you could lose it all. If you diversify using speculation and impulse, you may be up $350K in Apple, but down $500K in Solyndra and Enron.

If you invest in mutual funds or other managed asset situations, you'll be letting grown ups invest in a bigger and more diverse basket of investments than you can do on your own. And they will be picking stocks on far more than impulse.

 

[magnifier661]

I did read what he wrote. "Far out of the money" means the stock has to move big in price for those options to be profitable. Calls being options to buy the stock in the future at a price you set today. Far out of the money calls would be for a price "far" higher than today's price. Put options far out of the money require the stock price to fall far by the contract date to be profitable.

Going long in a stock is buying it with the expectation the price will rise. Unlike options, there is no expiration date.

Your analysis is both speculation and impulse oriented.

If you invest all your money in Apple, you could lose it all. If you diversify using speculation and impulse, you may be up $350K in Apple, but down $500K in Solyndra and Enron.

If you invest in mutual funds or other managed asset situations, you'll be letting grown ups invest in a bigger and more diverse basket of investments than you can do on your own. And they will be picking stocks on far more than impulse.

You are 100% accurate about my reason to stay with Apple. It was very impulse oriented.

Other than apple, I put my trust in my investment broker. I know I don't have too much business being in the markets on my own. I spread my investment money in %. 65% on mutual funds, 25% in stocks, the rest in Money Markets.

My investment broker wanted me to sell my 1,000 shares during the last decline and I refused. I'm glad I did.

 

[Denny Crane]

You might want to use several investment brokers. Diversify.

 

[Denny Crane]

Don't take barfo's advice. It's a loser for sure.

 

[magnifier661]

You might want to use several investment brokers. Diversify.

I did that long ago and I lost a lot of money. I found a guy that I trust. He's done well so far. I'm not against the diversifying of my brokers, I've just had a bad experience personally. Anyway, I'm in multiple mutual funds. That's almost like your concept anyway.

 

[Denny Crane]

Try out the additional brokers with smaller amounts of capital.

 

[blazerboy30]

Calls or puts are short term moves. I just used the long part of the quote so he understood what he said. Read his actual quote.

You can buy a leap or option dated several years in the future. That is considered "short term" by some people, but not you since you're on here talking about monthly price changes.

Again...show me, specifically, where I said not to go long Apple stock.

 

[barfo]

My advice would be to do whatever Denny says.

Don't take barfo's advice. It's a loser for sure.

barfo

 

[Denny Crane]

My advice would be to do whatever Denny says.



barfo

That would be my advice, which isn't your bad advice.