Apple at $154.70: Hello, goodbye

8 Comments

  1. Robert Douglass said:
    Well, I picked up several hundred shares at $157, just before noon, so I don’t feel too bad 🙂
    (I use these ‘occasional’ big downdrafts as an opportunity to p/u shares ‘on the cheap’, hold them for awhile, and sell ’em for some ‘play’ money profit. I do this in a margin account where I hold my never-to-be-sold core AAPL holdings, that I’ve acquired pre-split (actually TWO pre-splits 🙂
    As an old-broker-friend of mine once said… You’re a genius today, let’s see what tomorrow brings.:)
    This kind of action lets me re-enact my younger years… well, at least a little bit 🙂
    Retirement is good.

    9
    January 24, 2022
    • Jerry Doyle said:
      @Robert Douglass: Way to go brother Robert. 🙂

      0
      January 24, 2022
  2. Robert Paul Leitao said:
    @PED Thanks for the reminder! Apple reached today’s closing price for the first time two months ago today – November 24th. No reason to panic at all. As Robert Douglass stated above, for him it’s a real buy opportunity. While the sell off is unpleasant, it does provide Apple’s management the opportunity to repurchase more shares at a discounted price. That is if management moves quickly! We’ll see what Thursday brings when management announces December quarter results and March quarter guidance.

    2
    January 24, 2022
  3. Michael Goldfeder said:
    Apple will report good earnings and continue on its march higher, just like climbing the stairs at the “Burj Khalifa” in Dubai.

    0
    January 24, 2022
  4. Fred Stein said:
    Whenever the market takes these crazy dips, I sell a 10, or so, long-term out-of-the-money (30% or so) Puts. It’s not much $$. And one has to be patient to wait for these dips and then to wait until the positions atrophy.

    “Time is on my side”: 1) longer term puts carry higher premiums; 2) Buybacks; 3) Organic growth. Eg: Folks will actually pay $3.30 for a Jan 23 100 PUT.

    3
    January 24, 2022
  5. Bart Yee said:
    I wonder who was doing the selling today, retail investors, weak hands who had bought in November or December, institutions, hedge funds, or options players / brokerages? Despite the pessimism of being down, at the low, about -15.4% from all time high, I don’t feel particularly pessimistic. We were at the low of $154.70 back on Nov. 17, 2021 when enthusiasm for AAPL and Apple was starting to build. Fundamentally for Apple, nothing much has changed except we lived through the holiday quarter with strong demand, reasonable parts and product supply with some constraints on iPads and Macs, and the beginnings of the Omnicron Covid outbreak sweeping the globe.

    From a macroeconomic perspective, inflation and Fed actions were coming as most rational people foresaw, but the market likes to party right to the end (Fed confirmation announcement) and then acts like its some kind of bombshell, turns tail, and runs away. Well, AAPL went through the same thing in Nov-Dec 2018, May 2019, and of course Feb-Mar 2020. Each time macroeconomic or external events pulled AAPL and most others down. Each time, Apple stayed the course business wise, gathered themselves, and continued to forge ahead, facing any headwinds resolutely. I see no differences today. Whether the inflation rate spikes over the next year or so, Apple will continue its fundamentally sound product and services businesses. Whether the market supports or abandons AAPL, Apple itself will continue to create shareholder value, and eventually the stock will recover, sooner or later.

    Meanwhile, for those inclined, buying opportunities to the tune of a 15% or more discount (or a typical year’s worth of growth for the market) will appear. Set a lower buy limit and sit back. I felt fine and slept well in Sept. October and November, I’ll sleep fine during this quarter too. BTW, the PE dropped back to 28.8 today. After earnings, it will probably drop to ~26 based on an earnings beat.

    8
    January 24, 2022
  6. Jonny T said:
    In fewer words.. Apple sticks to its knitting while the rest of the world throw their own knitting needles out the window and do the headless chicken dance.

    0
    January 25, 2022
  7. Jonny T said:
    Can anyone tell me, if a firm takes $x million of their portfolio out of stocks at times like this, would they take APPL out proportionately? So if APPL were 10% of the portfolio they’d sell $x times 10% of AAPL?

    0
    January 25, 2022

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