Fundamentally, apple is a great stock to own right now. However, market is very volatile right now and apple may dip under $200 per share in the near future. I recommend you to keep your position if you don't need this $100k in the near future. Of course, your money, your decision.
That would be approximately the same price relative to cash that it had at the extreme bottom of the '08/'09 market crash. AAPL has no debt and more cash than most banks, and that's without having access to the discount window. The only real cloud on AAPL right now is that it is such an enormous company market cap wise, and historically, once companies reach that point growth rates become unsustainable. However, AAPL is also selling at a relatively low PE low-teens (or possibly even lower after this past week), so much of that may already be pricing itself in.
You have no clue whether it will hit 200 or not, and you have no clue whether, having hit 200, it will bounce back to 250. You should not risk money on things you have no clue about. Therefore, you should just stick to the investment case for AAPL, and ignore any trading or short-term price considerations.
Hello Akmusic, From the questions you asked I would gather that you are an investor rather than a trader. About 26 years ago I learned how to become an intermediate term trader (15%) along with primarily being a swing trader (70%) and position trader (15%). If you want to be an intermediate term trader you have to make some changes in your trading plan. One big change from investor to trader is to toss out opinions and predictions and develop a solid method to trade longer term. I had a couple intermediate term trades close down in last weeks trading. These trades ended because of my technical criteria and not what some analyst predicted or a guess about whether it was going lower. Investors do make decisions based on opinions, but traders do not. You are going to find there is very little written about how to make the transition to being an intermediate term trader. And much of what is written has investor terminology intermingled with it. But if you decide to become an intermediate term trader it can be very rewarding. The primary criteria for being an intimidate term trader is what are big guys doing to your stock. Are they accumulating or distributing? If I was trading Apple as an intermediate term trader I would have been stopped out last week. I would have been trading off of a weekly chart. There are many excellent techniques you can use to intermediate term trade on weekly or monthly charts. Apples closing weekly price recovered and now currently stands where I would regard the stop out I mention above as a fluke. Apples closing weekly price came back and will now give you time to reconsider how you will protect your account. If you sell as an investor it will be purely based on emotion and opinions. If you sell as a trader it will be based on the criteria you have tested that satisfy your goals and methods as an intermediate trader.
Since this is a LongTerm hold plan for you... If it was me I view AAPL as a HOLD since you've owned it for so long. PLace a stop at $220. and let it go then. Value is 300ish unless fundamental change in their next few quarters. Does anyone have "VALUELINE Survey" stats on this. Go ten years back and average the P/E, P/B, and ROE and find out if it's under or Over valued here.
If I were you, I would have sold it in late April/early May, when it seemed it's not going any higher than $270. Then, I would buy it back ONLY when/if, A: it becomes cheaper again or for any price less than what I sold OR B: it kept rallying above $270 shortly after I sold it. This method would sound more like trading but you may be interested in long term investing not short term trading. But I would feel like an idiot if I had this opportunity to take profits at $270 but ended up selling for $200 or even less! C topped $5 last month and I knew it stopped rallying any more, had I had it, I'd have definitely sold it back then and would buy it back now or at any price below $5 (like now that it is $4).
well i think that fundamentally apple is still strong, before this correction started apple was headed for 280, 300 which is where most analysts have their price targets set. I've been calling apple stores around the country ... about 100+ stores each day regarding the availability of the ipad and all stores have been sold out of ALL models, i believe that this will give apple a good shot at taking a market share from other e-book readers/netbooks... good bye black and white kindle and their rip off apple commercials. These stores where I live have been filled to the brim... regarding earnings they haven't missed a quarter in 5 years and are 'firing on all cylinders" this stock should be around 280-290 july/august.
Well I sold 575 shares @254. As soon as it settles I am going to put in a buy order at 220. This stock still has alot of room to grow, and was a major booster for the market rally today!
akmusic: If selling today was in your plan, then I'd say it was a smart move and great trade. Nice going, don't spend it all in one place,