...Just today I was asking a friend how I could rig up something to see who was at the front door, so I wouldn`t have to go down a flight of stairs and then down the porch (Veranda) to open the door....He said it was easy to rig up something that either worked through the iphone, or even better a tablet.....I`m going to figure out how much it would cost before doing anything, but there is another excuse to get either a phone or the I pad...
Usually when there is an overwhelming list of negative reasons (as you so ably wrote) is just the time to begin accumulating a position for a --longer period of investment-- than you guys do on this forum... Tony, ps maybe excepting jflix
I totally agree that as Apple's share price has been collapsing, it is, or will be, time to buy... Of course! I personally would like to see it go a little lower, but soon it will hit bottom, and the buyers will emerge.
Houdini... I understand your post... BUT, it's not really like that. You must keep in mind that we are over 5 weeks into a strong downward momentum. Walt Disney could have come back from the dead today and the market would have ended on a down note. It was inevitable.
The correction is not over, and much of the same issues and momentum is the same as it's been for over 5 weeks.
Bernanke had little to nothing to do with the market losing steam today. He has done a lot to save our economy from going off the cliff... perhaps more than any one else. That's not to say the economy is in good shape, but at least he kept us from a total meltdown.
That said, the market would have tanked today no matter what, IMO. The momentum was already in place.
I do, however, agree with you about his personality... which is close to the living dead. I recall Greenspan wasn't much livelier... must be a job requirement.
Agree with lots of this but not stock price. Apple shares are triple where they were 2 years ago but earnings are more than triple. So that's a quid pro quo and in fact PE is down significantly from earlier times. Add in the fact that the cash gowth from earnings has little or no value at all and one has to presume that investors are expecting a decline in earnings in future periods. Again Apple with little commentary on what they will do with their cash hoard and little guidance on earnings only adds to this problem. I could counter argue that while Apple shares mushroomed in price they actually declined with repsect to the underlying fundamental earnings, so in effect the stock hasn't risen at all. It's the old inflation argument. I got a 10% raise but inflation went up 11% so I have a net decline. Apple today is one of the most reasonably priced stocks I've ever seen. If it hit a new all time high tomorrow it would still be an amazingly reasonable stock. Psychologically the probem is high stock price and the lack of past splits. People rather buy a $32 stock than a $320 dollar stock even though they are buying the same exact thing.
Apple has set the bar on tablet pricing. If it comes out with a still cheaper 7" model than they can really own the space. But too small and you approach the larger phones. Still a great point as the tablets should come in at least 2 sizes and maybe a third 5" size. Have they left themselves vulnerable here or are they at play with a combo mac-air/tablet product in the future that will do that?? It would be an old hustler trick to get others to run there and then pull the cord with a next gen device that takes computers and tablets to a unified product.
Concerning the "cloud technology", what advantages does Apple have over Amazon or Google, who were there first ?
I think the Apple scan of your PC to capture all your legit and "ripped" music files for an annual $25 fee is brilliant. I bet you this turns into $1-2bln a year in profit for Apple while it gives record labels a partial payment for lost revenue for over a decade. It gives consumers an out, stops the attacks from labels on individuals (as examples) and Apple has set this all up as paying for a major convenience as opposed to an added cost. It's a win-win-win all the way around and IMO does not seem to be understood well by investoors. If I'm Google or Amazon I'm scrambling this morning to cut their lead down. But I doubt they will be able to given the accumulated credit cards Apple already has thanks to I-tunes. Remember this investment is already made so once the spigot turns on it's pure revenue and profit for Apple with a sky high renewal rate.
No 5" tablet... too small and too close to the 4.3" smartphones (like my 4.3" EVO 4G). Better to add a 7" and a larger 12-13".
Stock prices often over-reach to the low side just like they over-reach to the high side. I would LOVE to see the price of AAPL shares go down under $325. I would purchase a TON.
Up to $50K I have buys in at $330 and $332.50 and $335. 150 shares.
I absolutely love their music strategy. Lost in translation there is that the labels have agreed to no longer go after consumers who ripped music without paying for it. This is also a major win for labels and gives them a great recurring revenue stream. That will certainly offer Apple under the table advantages going forward.
If you believe the stock will run to $400 or higher than there's little difference buying at $325 or $330 IMO.
Well, I had purchased around $250,000 of shares when it was pricing around $343... as recent as Friday, so I'm certainly not afraid to step to the plate, but I see no sense in owning at a higher share price than necessary. I turned around and sold them first thing yesterday hoping to avoid the downturn, and I surprisingly sold them for a GAIN right before the price has since dropped around $14 lower within 2 days. I avoided a loss of over $10,000 in 48 hours. I'm OK with that.
The stock hasn't dropped the $330/share yet that you mentioned, so if that's your threshhold to buy that's fine. Certainly when buying only 150 shares, the difference per share as significant overall, so I can understand your somewhat casual look at the share price, but I don't intend to buy that small. I suppose I could always dollar-cost-average, and buy in phases, but I repeat that I would really love to see it drop a little closer to $325/share in order to consider buying a significant amount.
Also, you are not aware that APPL is not the ONLY stock I am watching. I had owned almost $400,000 worth of shares of Sprint and the decline of only 30 cents/share in the last 48 hours could have burned me for around $20,000. I avoided that loss, thankfully.
So... when you act like $5/share doesn't matter that much... well, it depends on the situation. Sometimes it hardly matters, and sometimes it matters a lot more.
Got it. Keep in mind I still have a large accumulated position. So I'm adding here. I still am biting myself for having no shares between the run-up of $128 to $160 because I put in stop gap loss while on vacation.
Watchiong paint dry is more exciting than watching these guys talk. At least Bernanke is tolerable. I didn't even understand half the larger words Greenspan spoke nor do I think did Congress. But the tone and delivery are key IMO.
Did you sell this morning when the share price was only down a small amount? Or are you hanging in there? Or something else?
Sorry for not posting sooner guys. My wife and I have been very busy entertaining friends from Graduate School we have not seen for over 30 years the past couple days. I see that a lot has been said here about AAPL, etc., the past 2 days and I'm trying to catch up.
To make a long story short, I sold another 175 shares of my AAPL shares early yesterday morning at about $337 on my E-Trade accounts. I held on to only 75 shares. I did nothing with the broker accounts. Now the big question is this: When do I buy AAPL again in a big way? I briefly saw that Len bought some more this morning at about $332. Maybe, the big boys are starting to do the same. I am trying to be cautious since AAPL has been acting like crap the past few months. Ultimately this stock will shoot up to at least $500.
EDIT: Oops! I sold 150 shares yesterday and not 175. I still hold 75 shares.
I agree with that. He looked helpless and almost hopeless, and I do agree he didn't have any magic bullet... the government is just about out of solutions... other than getting a Congress to do the right things (which is a joke)... and replacing Obama, who, IMO, ultimately has failed.
I am watching and waiting. I might jump in soon, but as much as I would love to buy it for a little less than the current price, I am much more concerned that the share price has a solid floor under it. That's what will get me to buy.
I recently made a lot of money on Sprint's large and fast advance. Happily, I took those gains. But, I almost fell into a trap last Friday by buying a ton of it on a dip, thinking it might bounce back... buy I sold it all off first thing Monday morning, and avoided a disaster.
This little blurb this morning is unsettling.
Real-time equity news U.S. stock market report 1647 ET 7July2011-Sprint July put action draws attention ------------------------------------------------------------------------------ Shares of Sprint Nextel fell with heavy option trading after Stifel Nicolaus downgraded the stock to "sell" from "hold." For details, see The shares fell 1.96 percent to $5.49. Sprint's option volume was 3.3 times greater than typical levels with about 93,000 puts and 23,000 traded on the day, according to Trade Alert. The July $5 puts grabbed the most attention with 77,165 contracts changing hands. Meanwhile, more details on the July $5 put trades trades emerged. Most of the puts appeared to have been sold against open interest of 1,387, said optionMonster analyst Chris McKhann on the firm's website. Earlier in the session, the volume went off in the course of five minutes with the institutional sized blocks, including 10,000 and 20,000 contracts going off for 12 cents per contract. But McKhann noted in the minutes before the options trade, a single trade of 894,200 shares changed hands for $5.45. "This would not be enough to create an overall delta-neutral trade with the puts, but the timing is awfully coincidental," he said. Both the stock and options traded in a spread that was just a penny wide, so it is difficult to analyze the strategy. "Our best guess is that the puts were sold to capitalize on the pump in implied volatility and the drop in stock price, while the shares were sold to hedge some of the directional bias," he said. Reuters Messaging: doris.frankel.reuters.com@reuters.net 1312 ET 7June2011-Citigroup sees 10-pct US stocks correction ------------------------------------------------------------------------------ U.S. stock indexes could fall as much as 10 percent from their May highs, but barring unexpected shocks should not return to a bear market, Citigroup's chief U.S. equity strategist said on Tuesday. "I think we are in a correction," Tobias Levkovich said at the Reuters 2011 Investment Outlook Summit in New York. "We're just going to struggle along here, and there will be bouts of rallies and pullbacks." The strategist's year-end forecast for the benchmark S&P 500 index is 1,400 points. For more please double click Reuters Messaging: caroline.valetkevitch.reuters.com@reuters.net 1137 ET 7June2011-Sprint put trade looks for protection ------------------------------------------------------------------------------ Sprint Nextel Corp is under pressure on Tuesday following a downgrade by Stifel Nicolaus. The brokerage cut Sprint to "sell" from "hold" citing concerns about the company's network overhaul and 4G strategy and set a target price of $4.50 on the stock. For details, see The shares fell 3 percent to $5.43 and in the option markets it looks like at least one investor is looking for downside protection with the purchase of 30,000 July $5 puts, said Patrick Mortimer, director of options trading at Pipeline Trading Systems. Two blocks of 20,000 and 10,000 contracts traded within seconds of each other on the offer price of 12 cents. More than 50,000 contracts have traded in this strike already near midday on Tuesday and, with open interest of just 1,387 contracts, these are opening transactions. The trade will reach break-even when Sprint's shares trade 10 percent lower than their current price by July expiration. The activity has pushed Sprint's total put volume to eight times its daily average of 7,847 contracts, according to Trade Alert. Reuters Messaging: doris.frankel.reuters.com@reuters.net 1114 ET 7June2011-Big put trade bets on drop in S&P 500 ETF ------------------------------------------------------------------------------ A massive put butterfly was initiated in the SPDR S&P 500 Trust, often viewed as a proxy for the S&P 500 index . "A trader is making a huge bet that the SPDR S&P 500 exchange-traded fund will fall to $120 in the next month," said optionMonster analyst Chris McKhann on the firm's website. The strategy is using the July $128/$120/$112 put butterfly in the fund, known as the Spyders. OptionMonster data showed the trader bought 40,000 $128 puts for $2.34, sold 80,000 $120 puts for 65 cents and bought 40,000 $112 puts for 18 cents. The volume at the two outer strikes was less than open interest, but the trade was done as one unit, indicating this was a new opening position, he said. The cost of the spread was $1.22, which is the most that can be lost if SPY remains above $128. The maximum profit of $6.78 would come if the SPY was at $120 at expiration. That is another 7.5 percent lower than the current price of $129.82. "While some traders use butterflies as hedges against long positions, most avoid them," he said. "The current delta of the overall position is just 0.18 and is therefore not much of a meaningful hedge if shares fall sharply or if they push considerably lower."
I owned about 70,000 shares (approx. $400,000). The stock has been falling quickly, especially on a percentage basis. Do the math. :surprise:
Yet, I still managed to make decent money on Sprint, and sold it just in time. (Whew!) The market can be particularly dangerous for those that aren't careful, and also dangerous for those that are. Risk is real.
I owned about 70,000 shares (approx. $400,000). The stock has been falling quickly, especially on a percentage basis. Do the math.
If I bought $400,000 worth of a stock (especially a stock that may be in trouble), I would literally s..t in my pants. You sir, are a heavy hitter . Maybe you should not play as hard.
Note: When the meltdown happened (the one you BRILLIANTLY escaped), I was way over 7 digits into the market... it was a horrible experience... and my broker was an idiot, as usual, telling me to "stay in" and "ride it out" because if I got out I would miss the rebound. I will never forgive those responsible for the meltdown. Only problem is, I can't seem to figure out who is/was to blame!!... and (unless I missed it) I have yet to see ONE SINGLE PERSON charged with having committed any crimes. :surprise:
Who's fault was it anyway? George Soros?... LOL Seriously... Who did it?
Financial greed perpetrated the global financial institutions who, together, looked the other way when the credit risks formed the largest bubble know to man. When the dominoes fell, it was every bank for itself!
I should have included you with jflix as an investor ---sorry---Tony ps and you put your finger on it....There is an excellent book `The Big Short` that imo describes how this greed began, and how it was embraced by almost all of the Wall Street crowd.... I find it sad that the big brokers so want to be considered `banks`...they so want the integrity that goes with a banker in the true sense....A now `soiled` profesion, and I put Goldman at the top a shame
I almost fell into a trap last Friday by buying a ton of it on a dip I was going to short it. I did get out of C before it went below 40. Also bought 300 put contracts. Two excellent moves on my part to end a streak of bad ones. Had I pulled the trigger on S, it would have been 3 for 3. How long do you figure this correction will last?
There are genuine and serious financial and political problems. I hate political interference, as I used to post about quite often. It messes up everything. Going into a presidential election year, we might think the stock market should perform well, but I think that the Republicans would be idiots to significantly help out the economy right now. That would get Obama re-elected, and that's the last thing they want... so where does that leave an ailing economy in the meantime? And the stock market?
Democrats, however, don't "get it"either. They are total idiots... they want to increase the size of government, increase spending, and increase taxes... so again, where does that leave an ailing economy in the meantime? And the stock market?
To support the idea of adding financial burdens and punishment to an entire society is INSANE.
For the sake of discussion, let's assume that there is indeed merit to alternative fuels... then the advantages themselves should be the primary motivation for a society to make the transition... In addition, if the government is so inclined to interfere, then instead of imposing hardship, it would be smarter to REWARD the desired behavior.
This pattern of INSANE STUPIDITY that comes from liberals in government is why there are heavy tax burdens on businesses, instead of rewards for business prosperity... it's why Obama wants to raise taxes instead of creating tax incentives to reward productivity and success.
Somehow those idiots see success as "unfair" to those that don't participate, so they decide to make it fair by imposing penalties and burdens on success. How stupid can they get?!!
If alternative fuel is what they want... then simply help make it an attractive alternative.
Unfortuantely, that ethanol was the only economically viable - albeit with subsidies - available to replace MTBE. Reducing the subsidy would increase the cost of gas.
Spiking gasoline with some ethanol is definitely a perk, and a rather large on at that, for the likes of ADM... no doubt about it.
However, GM's motivation in recommending expensive gasoline is the obvious... to sell more Volts and future Volt variants. GM needs the Volt (and future variants) to be successful. They have gambled too much on its success. They would love for gasoline to be over $5.00/gallon or even more.
Regardless, electric vehicles and more efficient hybrid vehicles are going to increasingly take market share over time. No one needs to have a freakin' tax imposed for this to happen. If the government wants to interfere, then its best course of action is to continue or increase its tax incentives and thereby reward the purchase of those types of vehicles.
Also, if the government insists on interfering (as they usually do), they could offer incentives to build an infrastructure that would support the alternatives they want to promote.
One of the real tragedies, IMO, is that our country has an amazing amount of natural gas that could easily be used, and we could be so much less dependent upon those "you-know-whos"... yet, where's the policy? Where's that great energy policy that Obama promised? And, speaking of broken promises... where are the jobs he promised?
So, here we are... in the same boat... another president that tells lies, and NO ENERGY POLICY .
IMHO, energy independence won't happen without government intervention. Industry won't invest billions or trillions in research and infrastructure unless they can get results this quarter. Industry (and investors) have little patience for long term payback.
OK, Mr. Guru . Does it bother you that the Dow is up 120 points or so as I write this and AAPL is doing diddly? I have not done a thing yet. It acts like it will go down below $330 in the very near future (like today or tomorrow). If it does, I am definitely going to buy a couple hundred shares. On the other hand, if it takes off from here (doubtful) and trades above $336 or so, I will probably buy a little. I don't want to be left in the cold. I wish I knew the real answer as to why AAPL has fallen out of favor with the big boys.
Btw, I do not have the VERY negative feeling about the overall market that some of you have at this time.
Charlie, I'm probably happier than I was a couple of years ago, but I'm living in (in my mind, at least) somewhat of a state of flux. I'm not sure what is really happening in my life. But, I and my family are healthy and together... And the tornados of Western Mass did not visit our neck of the woods.
Speaking of that, I bought the Jag in the Springfield, MA area. When I picked it up last Friday, you couldn't tell anything was amiss. But, half a mile from the dealer, devastation... I had such guilt picking up this car just two days after the tornados, knowing of the lives completely turned upside down in the region. But, Mr. Car Dealer himself noted, "Life and business must go on..." (his childhood home was destroyed) and I'm continuing to help keep the economy going/people employed with my purchase...!
Tag, it is a special car. And, while Mr. Lucas may have left the building, his ghost lives on as the AM radio is now MIA! Less than a week of ownership and my first electronic issue. Not a big deal, but to listen to the Red Sox, need AM. Eventually, I'll make a warranty appt. at the local Jag dealer. As I took an overnight test drive of an XK from the dealer down the road from work, but didn't buy that one, I'm kinda embarassed to take the Jag there, so I'll use the one close to home.
Gorgeous car, I'm just a sucker for leather and wood. Simple, elegant main IP, the center screen (as expected) is kind of slow and clunky. But it works in a somewhat Rube Goldbergian sort of way. Smooth, quiet ride, subtle power and a wonderful exhaust note. Sounds meaner than it probably is, meow... MPG not horrible, but (again, as expected) not near TL level. But looking down that LONG hood with shades of fenders and raised center a la classic XKE (not to mention the broad shoulders I see in my side-view mirrors), the cockels of my heart are warmed.
My son continues to approve, although he's sure it is simply the precursor to an Aston Martin DB9 that he will inherit in four years. In the words of Aerosmith, my son, "Dream On!" While he knows $ doesn't grow on trees, he's pretty sure there is at least a $ shrub somewhere in our yard as he asks and things magically appear... Daughter is not so approving, not understanding why I would do this when I had a perfectly lovely car, we're doing some work on the house and the money I spent would be better used for the college funds. She is truly my daughter, the voice of reason. But, she is far from a mid-life crisis, talk to you in 35 years, my young friend! This is really the first non-sensical extravagance I've treated myself to, but my practical side is still laying on a daughter-like guilt trip...
Son wants me to buy some AAPL, he alone could knock the price up with his desires of all that is AAPL. He gave me his first IPod Touch when the $ bush produced enough to buy him the 4th Gen. And, life is a total struggle for him without an IPad and an IPhone, of course. Me, at 12? Pinball (Pong was still a couple of years away) and a dime for the payphone!!!
Forgive the car/life ruminations. Now, back to the state of the financial world...
Wishing you all health, wealth and happiness,
LD
'21 Dark Blue/Black Audi A7 PHEV (mine); '22 White/Beige BMW X3 (hers); '20 Estoril Blue/Oyster BMW M240xi 'Vert (Ours, read: hers in 'vert weather; mine during Nor'easters...)
OK, Mr. Guru . Does it bother you that the Dow is up 120 points or so as I write this and AAPL is doing diddly? I have not done a thing yet. It acts like it will go down below $330 in the very near future (like today or tomorrow). If it does, I am definitely going to buy a couple hundred shares. On the other hand, if it takes off from here (doubtful) and trades above $336 or so, I will probably buy a little. I don't want to be left in the cold. I wish I knew the real answer as to why AAPL has fallen out of favor with the big boys.
Btw, I do not have the VERY negative feeling about the overall market that some of you have at this time.
Ok Charlie...
Let's gather ourselves here. Take a deep breath.
Contrary to your post... Let me make it clear that I do not have a VERY negative view of the market... I do have a very negative view of the economy, however. They are not the same. If I had a very negative view of the market, I would not have been soooo heavily invested in it for so long. I do have issues with the market, that's true. Recently, on April 29th, I believed we would enter a correction. My broker and I disagreed, which you already know about. As it turns out, I was right... to the point of hitting a bullseye. Even during the correction, I have taken advantage of stocks that I thought might advance my position, and overall, the combination of those stocks did indeed improve my position... mostly due to AAPL (believe it or not!) Sprint, and a couple others that I messed around with, such as CKSW. But, they ran their course, and I sold them at the right time... and the correction continued.
Now, as GS asked... when will the correction end? Heck, I don't know, because there are unusual circumstances at play, but I do know that I was willing to buy 100 shares of AAPL at $331.44 and 1,000 shares of SNE (Sony) at $25.32.
ALL of us here share a positive long-term view of AAPL, so I suggest you be VERY patient on the stock. It is NOT going to be the screaming race car it was... at least not for a while. But, it WILL be a good long-term investment.
You don't have to do ANYTHING right now. If you want to invest in the stock market, and if you love AAPL that much, you can carefully and slowly buy more AAPL shares at dips, and average yourself a good price, and you can also look at some other bargains that usually show up when there is a correction. I personally decided today that SONY might be a good long-term investment, given the way it has been hammered. But, there is always the risk that a company like SONY is going to go down the drain, right? It's the same company it always was, but it's stock price is half what it was. Makes me stop and think.
Sorry TM. I stand corrected. I do know that you have not been VERY negative on the Stock Market. However, I should have stated that I am not VERY negative neither in the economy nor the Stock Market. I have already said this a week or two ago, but this "correction" is nothing more than the aftereffects of the Japanese disasters and the VERY high crude/gasoline prices. There was a lag. Well, guess what? Japan is starting to recover and gas prices are now about 40 cents a gallon cheaper than it was a couple months ago. I think it will get cheaper yet inspite of the OPEC BS yesterday. IMHO, gas prices are extremely important to the American consumer. The average Joe Blow will start to spend more if he/she perceives that gas prices are more reasonable. Of course what seems reasonable now would have seemed quite unreasonable a year or so ago.
I truly believe that the bull market will resume in another month or two at most (politics aside). As far as AAPL is concerned, I still think that sooner or later, it will resume it's climb toward the $500 level. Some great news will come out and BOOM! My problem at this point is that I am not sure when to pull the trigger and buy more shares. I hope I buy low and NOT high .
You are absolutely correct about ethanol. It is also bad for your engine. We have one station locally that sells premium gas with NO ethanol. When I started using it I was amazed at how much better my car ran and how much more power it seemed to have. Also at least 2 mpg better mileage. Real gasoline is all I use now in both vehicles.
There is a web site (don't remember the name, just google something like where to buy gas with no ethanol) you can use to try to find no ethanol gasoline. I think it goes by zip code, etc.
My problem at this point is that I am not sure when to pull the trigger and buy more shares. I hope I buy low and NOT high
Well, Len had a perspective on that yesterday. He suggested that small differences don't matter much when you are targeting $450 (or $500, in your view).
He is right, providing you are not purchasing massive amounts of a stock, as I pointed out.
The BEST way for you to solve your "problem" is to dollar-cost-average. Keep buying at dips... a little at a time... or in time intervals (such as once a month). Eventually you should have enough of the stock, and then just sit tight. You do not have to hit a grand slam to make money. In fact, that shouldn't be your goal. If you can average your purchase price to be lower than your sale price, then VOILA... you have a profit and you have done a good job. Keep it simple.
You do tend to put too much emphasis on this one stock, or so it seems, and you should invest your money, not your emotions. IOW, try not to have a love affair with any company too much, as it can cloud your investment decisions.
Honestly, I strongly suggest that you dollar-cost-average this stock. I will likely do the same. How many shares of AAPL do you want to own, ultimately?
I have a "weekend truck" I like to drive around, but a tank of gas can last more than 2 months, and ethanol will absorb water and make a mess of your vehicle.
There's a station in town that sells real gas(supposed to be for power equipment), but he lets me fill my truck there.
The truck runs better, and the mileage goes from 10MPG to 12MPG.
This also explains why I only drive it on weekends...
Comments
...Just today I was asking a friend how I could rig up something to see who was at the front door, so I wouldn`t have to go down a flight of stairs and then down the porch (Veranda) to open the door....He said it was easy to rig up something that either worked through the iphone, or even better a tablet.....I`m going to figure out how much it would cost before doing anything, but there is another excuse to get either a phone or the I pad...
Usually when there is an overwhelming list of negative reasons (as you so ably wrote) is just the time to begin accumulating a position for a --longer period of investment-- than you guys do on this forum...
TM
Business, private enterprise and consumers are the only thing that can improve this economy...unfortunately, Obama has declared war on all of them.
2013 LX 570 2016 LS 460
The correction is not over, and much of the same issues and momentum is the same as it's been for over 5 weeks.
Bernanke had little to nothing to do with the market losing steam today. He has done a lot to save our economy from going off the cliff... perhaps more than any one else. That's not to say the economy is in good shape, but at least he kept us from a total meltdown.
That said, the market would have tanked today no matter what, IMO. The momentum was already in place.
I do, however, agree with you about his personality... which is close to the living dead. I recall Greenspan wasn't much livelier... must be a job requirement.
TM
Apple has set the bar on tablet pricing. If it comes out with a still cheaper 7" model than they can really own the space. But too small and you approach the larger phones. Still a great point as the tablets should come in at least 2 sizes and maybe a third 5" size. Have they left themselves vulnerable here or are they at play with a combo mac-air/tablet product in the future that will do that?? It would be an old hustler trick to get others to run there and then pull the cord with a next gen device that takes computers and tablets to a unified product.
I think the Apple scan of your PC to capture all your legit and "ripped" music files for an annual $25 fee is brilliant. I bet you this turns into $1-2bln a year in profit for Apple while it gives record labels a partial payment for lost revenue for over a decade. It gives consumers an out, stops the attacks from labels on individuals (as examples) and Apple has set this all up as paying for a major convenience as opposed to an added cost. It's a win-win-win all the way around and IMO does not seem to be understood well by investoors. If I'm Google or Amazon I'm scrambling this morning to cut their lead down. But I doubt they will be able to given the accumulated credit cards Apple already has thanks to I-tunes. Remember this investment is already made so once the spigot turns on it's pure revenue and profit for Apple with a sky high renewal rate.
Stock prices often over-reach to the low side just like they over-reach to the high side. I would LOVE to see the price of AAPL shares go down under $325. I would purchase a TON.
TM
TM
Amazon does do that for free. I'm going to have to look into what Apple offers that Amazon does not for the $25 fee.
I absolutely love their music strategy. Lost in translation there is that the labels have agreed to no longer go after consumers who ripped music without paying for it. This is also a major win for labels and gives them a great recurring revenue stream. That will certainly offer Apple under the table advantages going forward.
If you believe the stock will run to $400 or higher than there's little difference buying at $325 or $330 IMO.
http://blogs.forbes.com/briancaulfield/2011/06/06/did-apple-just-build-an-amnest- y-program-for-digital-music/?partner=yahootix
Well, I had purchased around $250,000 of shares when it was pricing around $343... as recent as Friday, so I'm certainly not afraid to step to the plate, but I see no sense in owning at a higher share price than necessary. I turned around and sold them first thing yesterday hoping to avoid the downturn, and I surprisingly sold them for a GAIN right before the price has since dropped around $14 lower within 2 days. I avoided a loss of over $10,000 in 48 hours. I'm OK with that.
The stock hasn't dropped the $330/share yet that you mentioned, so if that's your threshhold to buy that's fine. Certainly when buying only 150 shares, the difference per share as significant overall, so I can understand your somewhat casual look at the share price, but I don't intend to buy that small. I suppose I could always dollar-cost-average, and buy in phases, but I repeat that I would really love to see it drop a little closer to $325/share in order to consider buying a significant amount.
Also, you are not aware that APPL is not the ONLY stock I am watching. I had owned almost $400,000 worth of shares of Sprint and the decline of only 30 cents/share in the last 48 hours could have burned me for around $20,000. I avoided that loss, thankfully.
So... when you act like $5/share doesn't matter that much... well, it depends on the situation. Sometimes it hardly matters, and sometimes it matters a lot more.
TM
One of these days.
TM
Regards,
OW
2013 LX 570 2016 LS 460
My Apple purchases triggered at $332.50.
Sorry for not posting sooner guys. My wife and I have been very busy entertaining friends from Graduate School we have not seen for over 30 years the past couple days. I see that a lot has been said here about AAPL, etc., the past 2 days and I'm trying to catch up.
To make a long story short, I sold another 175 shares of my AAPL shares early yesterday morning at about $337 on my E-Trade accounts. I held on to only 75 shares. I did nothing with the broker accounts. Now the big question is this: When do I buy AAPL again in a big way? I briefly saw that Len bought some more this morning at about $332. Maybe, the big boys are starting to do the same. I am trying to be cautious since AAPL has been acting like crap the past few months. Ultimately this stock will shoot up to at least $500.
EDIT: Oops! I sold 150 shares yesterday and not 175. I still hold 75 shares.
TM
TM
I am watching and waiting. I might jump in soon, but as much as I would love to buy it for a little less than the current price, I am much more concerned that the share price has a solid floor under it. That's what will get me to buy.
TM
This little blurb this morning is unsettling.
Real-time equity news U.S. stock market report 1647 ET 7July2011-Sprint July put action draws attention ------------------------------------------------------------------------------ Shares of Sprint Nextel fell with heavy option trading after Stifel Nicolaus downgraded the stock to "sell" from "hold." For details, see The shares fell 1.96 percent to $5.49. Sprint's option volume was 3.3 times greater than typical levels with about 93,000 puts and 23,000 traded on the day, according to Trade Alert. The July $5 puts grabbed the most attention with 77,165 contracts changing hands. Meanwhile, more details on the July $5 put trades trades emerged. Most of the puts appeared to have been sold against open interest of 1,387, said optionMonster analyst Chris McKhann on the firm's website. Earlier in the session, the volume went off in the course of five minutes with the institutional sized blocks, including 10,000 and 20,000 contracts going off for 12 cents per contract. But McKhann noted in the minutes before the options trade, a single trade of 894,200 shares changed hands for $5.45. "This would not be enough to create an overall delta-neutral trade with the puts, but the timing is awfully coincidental," he said. Both the stock and options traded in a spread that was just a penny wide, so it is difficult to analyze the strategy. "Our best guess is that the puts were sold to capitalize on the pump in implied volatility and the drop in stock price, while the shares were sold to hedge some of the directional bias," he said. Reuters Messaging: doris.frankel.reuters.com@reuters.net 1312 ET 7June2011-Citigroup sees 10-pct US stocks correction ------------------------------------------------------------------------------ U.S. stock indexes could fall as much as 10 percent from their May highs, but barring unexpected shocks should not return to a bear market, Citigroup's chief U.S. equity strategist said on Tuesday. "I think we are in a correction," Tobias Levkovich said at the Reuters 2011 Investment Outlook Summit in New York. "We're just going to struggle along here, and there will be bouts of rallies and pullbacks." The strategist's year-end forecast for the benchmark S&P 500 index is 1,400 points. For more please double click Reuters Messaging: caroline.valetkevitch.reuters.com@reuters.net 1137 ET 7June2011-Sprint put trade looks for protection ------------------------------------------------------------------------------ Sprint Nextel Corp is under pressure on Tuesday following a downgrade by Stifel Nicolaus. The brokerage cut Sprint to "sell" from "hold" citing concerns about the company's network overhaul and 4G strategy and set a target price of $4.50 on the stock. For details, see The shares fell 3 percent to $5.43 and in the option markets it looks like at least one investor is looking for downside protection with the purchase of 30,000 July $5 puts, said Patrick Mortimer, director of options trading at Pipeline Trading Systems. Two blocks of 20,000 and 10,000 contracts traded within seconds of each other on the offer price of 12 cents. More than 50,000 contracts have traded in this strike already near midday on Tuesday and, with open interest of just 1,387 contracts, these are opening transactions. The trade will reach break-even when Sprint's shares trade 10 percent lower than their current price by July expiration. The activity has pushed Sprint's total put volume to eight times its daily average of 7,847 contracts, according to Trade Alert. Reuters Messaging: doris.frankel.reuters.com@reuters.net 1114 ET 7June2011-Big put trade bets on drop in S&P 500 ETF ------------------------------------------------------------------------------ A massive put butterfly was initiated in the SPDR S&P 500 Trust, often viewed as a proxy for the S&P 500 index . "A trader is making a huge bet that the SPDR S&P 500 exchange-traded fund will fall to $120 in the next month," said optionMonster analyst Chris McKhann on the firm's website. The strategy is using the July $128/$120/$112 put butterfly in the fund, known as the Spyders. OptionMonster data showed the trader bought 40,000 $128 puts for $2.34, sold 80,000 $120 puts for 65 cents and bought 40,000 $112 puts for 18 cents. The volume at the two outer strikes was less than open interest, but the trade was done as one unit, indicating this was a new opening position, he said. The cost of the spread was $1.22, which is the most that can be lost if SPY remains above $128. The maximum profit of $6.78 would come if the SPY was at $120 at expiration. That is another 7.5 percent lower than the current price of $129.82. "While some traders use butterflies as hedges against long positions, most avoid them," he said. "The current delta of the overall position is just 0.18 and is therefore not much of a meaningful hedge if shares fall sharply or if they push considerably lower."
I owned about 70,000 shares (approx. $400,000). The stock has been falling quickly, especially on a percentage basis. Do the math. :surprise:
Yet, I still managed to make decent money on Sprint, and sold it just in time. (Whew!) The market can be particularly dangerous for those that aren't careful, and also dangerous for those that are. Risk is real.
TM
Not to worry, it is just a bump in the road. I am still holding my Sprint and Cisco. I hope I don't get killed.
If I bought $400,000 worth of a stock (especially a stock that may be in trouble), I would literally s..t in my pants. You sir, are a heavy hitter
I am definitely going to lighten up.
Thank you.
TM
Note: When the meltdown happened (the one you BRILLIANTLY escaped), I was way over 7 digits into the market... it was a horrible experience... and my broker was an idiot, as usual, telling me to "stay in" and "ride it out" because if I got out I would miss the rebound. I will never forgive those responsible for the meltdown. Only problem is, I can't seem to figure out who is/was to blame!!... and (unless I missed it) I have yet to see ONE SINGLE PERSON charged with having committed any crimes. :surprise:
Who's fault was it anyway? George Soros?... LOL
Seriously... Who did it?
That's enough for now.
TM
Bernie was left holding the bag!
Regards,
OW
I should have included you with jflix as an investor ---sorry---Tony ps and you put your finger on it....There is an excellent book `The Big Short` that imo describes how this greed began, and how it was embraced by almost all of the Wall Street crowd....
I find it sad that the big brokers so want to be considered `banks`...they so want the integrity that goes with a banker in the true sense....A now `soiled` profesion, and I put Goldman at the top a shame
I was going to short it. I did get out of C before it went below 40. Also bought 300 put contracts. Two excellent moves on my part to end a streak of bad ones. Had I pulled the trigger on S, it would have been 3 for 3.
How long do you figure this correction will last?
Remember when you were a kid?... Your parents probably told you... "Tony, don't play with matches... you might get BURNED!"
TM
I'm really not sure.
There are genuine and serious financial and political problems. I hate political interference, as I used to post about quite often. It messes up everything. Going into a presidential election year, we might think the stock market should perform well, but I think that the Republicans would be idiots to significantly help out the economy right now. That would get Obama re-elected, and that's the last thing they want... so where does that leave an ailing economy in the meantime? And the stock market?
Democrats, however, don't "get it"either. They are total idiots... they want to increase the size of government, increase spending, and increase taxes... so again, where does that leave an ailing economy in the meantime? And the stock market?
TM
Think GM makes the best alt. fuel vehicles? HAHAHAHAHA!!
What kind of thinking brings this idea in a time of a weak economy? Do you really need a brain to be a CEO of GM or Edmunds?
Regards,
OW
To support the idea of adding financial burdens and punishment to an entire society is INSANE.
For the sake of discussion, let's assume that there is indeed merit to alternative fuels... then the advantages themselves should be the primary motivation for a society to make the transition... In addition, if the government is so inclined to interfere, then instead of imposing hardship, it would be smarter to REWARD the desired behavior.
This pattern of INSANE STUPIDITY that comes from liberals in government is why there are heavy tax burdens on businesses, instead of rewards for business prosperity... it's why Obama wants to raise taxes instead of creating tax incentives to reward productivity and success.
Somehow those idiots see success as "unfair" to those that don't participate, so they decide to make it fair by imposing penalties and burdens on success. How stupid can they get?!!
If alternative fuel is what they want... then simply help make it an attractive alternative.
TM
Not when you have an endless supply of tax dollars and subsidies for worthless cars like the Volt.
I just bought 1000 shares of SONY...no BALONEY!
Got 1000 shares SNE @ $25.32 / share
TM
If they would simply get RID of ethanol-laced fuel, we would all be using 10% LESS gas than we do today.
Here in Oregon, we use the ethanol fuel year round, and when they rolled it out, my car's mileage went from 38-40MPG, to 34-35 MPG.
The only ones winning this scam are ADM... :mad:
However, GM's motivation in recommending expensive gasoline is the obvious... to sell more Volts and future Volt variants. GM needs the Volt (and future variants) to be successful. They have gambled too much on its success. They would love for gasoline to be over $5.00/gallon or even more.
Regardless, electric vehicles and more efficient hybrid vehicles are going to increasingly take market share over time. No one needs to have a freakin' tax imposed for this to happen. If the government wants to interfere, then its best course of action is to continue or increase its tax incentives and thereby reward the purchase of those types of vehicles.
Also, if the government insists on interfering (as they usually do), they could offer incentives to build an infrastructure that would support the alternatives they want to promote.
One of the real tragedies, IMO, is that our country has an amazing amount of natural gas that could easily be used, and we could be so much less dependent upon those "you-know-whos"... yet, where's the policy? Where's that great energy policy that Obama promised? And, speaking of broken promises... where are the jobs he promised?
So, here we are... in the same boat... another president that tells lies, and NO ENERGY POLICY .
TM
That's the same alternative indepence policy that every President going back to Nixon has proposed.
http://www.thedailyshow.com/watch/wed-june-16-2010/an-energy-independent-future
IMHO, energy independence won't happen without government intervention. Industry won't invest billions or trillions in research and infrastructure unless they can get results this quarter. Industry (and investors) have little patience for long term payback.
Btw, I do not have the VERY negative feeling about the overall market that some of you have at this time.
Charlie, I'm probably happier than I was a couple of years ago, but I'm living in (in my mind, at least) somewhat of a state of flux. I'm not sure what is really happening in my life. But, I and my family are healthy and together... And the tornados of Western Mass did not visit our neck of the woods.
Speaking of that, I bought the Jag in the Springfield, MA area. When I picked it up last Friday, you couldn't tell anything was amiss. But, half a mile from the dealer, devastation... I had such guilt picking up this car just two days after the tornados, knowing of the lives completely turned upside down in the region. But, Mr. Car Dealer himself noted, "Life and business must go on..." (his childhood home was destroyed) and I'm continuing to help keep the economy going/people employed with my purchase...!
Tag, it is a special car. And, while Mr. Lucas may have left the building, his ghost lives on as the AM radio is now MIA! Less than a week of ownership and my first electronic issue. Not a big deal, but to listen to the Red Sox, need AM. Eventually, I'll make a warranty appt. at the local Jag dealer. As I took an overnight test drive of an XK from the dealer down the road from work, but didn't buy that one, I'm kinda embarassed to take the Jag there, so I'll use the one close to home.
Gorgeous car, I'm just a sucker for leather and wood. Simple, elegant main IP, the center screen (as expected) is kind of slow and clunky. But it works in a somewhat Rube Goldbergian sort of way. Smooth, quiet ride, subtle power and a wonderful exhaust note. Sounds meaner than it probably is, meow... MPG not horrible, but (again, as expected) not near TL level. But looking down that LONG hood with shades of fenders and raised center a la classic XKE (not to mention the broad shoulders I see in my side-view mirrors), the cockels of my heart are warmed.
My son continues to approve, although he's sure it is simply the precursor to an Aston Martin DB9 that he will inherit in four years. In the words of Aerosmith, my son, "Dream On!" While he knows $ doesn't grow on trees, he's pretty sure there is at least a $ shrub somewhere in our yard as he asks and things magically appear... Daughter is not so approving, not understanding why I would do this when I had a perfectly lovely car, we're doing some work on the house and the money I spent would be better used for the college funds. She is truly my daughter, the voice of reason. But, she is far from a mid-life crisis, talk to you in 35 years, my young friend! This is really the first non-sensical extravagance I've treated myself to, but my practical side is still laying on a daughter-like guilt trip...
Son wants me to buy some AAPL, he alone could knock the price up with his desires of all that is AAPL. He gave me his first IPod Touch when the $ bush produced enough to buy him the 4th Gen. And, life is a total struggle for him without an IPad and an IPhone, of course. Me, at 12? Pinball (Pong was still a couple of years away) and a dime for the payphone!!!
Forgive the car/life ruminations. Now, back to the state of the financial world...
Wishing you all health, wealth and happiness,
LD
'21 Dark Blue/Black Audi A7 PHEV (mine); '22 White/Beige BMW X3 (hers); '20 Estoril Blue/Oyster BMW M240xi 'Vert (Ours, read: hers in 'vert weather; mine during Nor'easters...)
Btw, I do not have the VERY negative feeling about the overall market that some of you have at this time.
Ok Charlie...
Let's gather ourselves here. Take a deep breath.
Contrary to your post... Let me make it clear that I do not have a VERY negative view of the market... I do have a very negative view of the economy, however. They are not the same. If I had a very negative view of the market, I would not have been soooo heavily invested in it for so long. I do have issues with the market, that's true. Recently, on April 29th, I believed we would enter a correction. My broker and I disagreed, which you already know about. As it turns out, I was right... to the point of hitting a bullseye. Even during the correction, I have taken advantage of stocks that I thought might advance my position, and overall, the combination of those stocks did indeed improve my position... mostly due to AAPL (believe it or not!) Sprint, and a couple others that I messed around with, such as CKSW. But, they ran their course, and I sold them at the right time... and the correction continued.
Now, as GS asked... when will the correction end? Heck, I don't know, because there are unusual circumstances at play, but I do know that I was willing to buy 100 shares of AAPL at $331.44 and 1,000 shares of SNE (Sony) at $25.32.
ALL of us here share a positive long-term view of AAPL, so I suggest you be VERY patient on the stock. It is NOT going to be the screaming race car it was... at least not for a while. But, it WILL be a good long-term investment.
You don't have to do ANYTHING right now. If you want to invest in the stock market, and if you love AAPL that much, you can carefully and slowly buy more AAPL shares at dips, and average yourself a good price, and you can also look at some other bargains that usually show up when there is a correction. I personally decided today that SONY might be a good long-term investment, given the way it has been hammered. But, there is always the risk that a company like SONY is going to go down the drain, right? It's the same company it always was, but it's stock price is half what it was. Makes me stop and think.
Hope that helps.
TM
I truly believe that the bull market will resume in another month or two at most (politics aside). As far as AAPL is concerned, I still think that sooner or later, it will resume it's climb toward the $500 level. Some great news will come out and BOOM! My problem at this point is that I am not sure when to pull the trigger and buy more shares. I hope I buy low and NOT high
There is a web site (don't remember the name, just google something like where to buy gas with no ethanol) you can use to try to find no ethanol gasoline. I think it goes by zip code, etc.
2013 LX 570 2016 LS 460
Well, Len had a perspective on that yesterday. He suggested that small differences don't matter much when you are targeting $450 (or $500, in your view).
He is right, providing you are not purchasing massive amounts of a stock, as I pointed out.
The BEST way for you to solve your "problem" is to dollar-cost-average. Keep buying at dips... a little at a time... or in time intervals (such as once a month). Eventually you should have enough of the stock, and then just sit tight. You do not have to hit a grand slam to make money. In fact, that shouldn't be your goal. If you can average your purchase price to be lower than your sale price, then VOILA... you have a profit and you have done a good job. Keep it simple.
You do tend to put too much emphasis on this one stock, or so it seems, and you should invest your money, not your emotions. IOW, try not to have a love affair with any company too much, as it can cloud your investment decisions.
Honestly, I strongly suggest that you dollar-cost-average this stock. I will likely do the same. How many shares of AAPL do you want to own, ultimately?
TM
There's a station in town that sells real gas(supposed to be for power equipment), but he lets me fill my truck there.
The truck runs better, and the mileage goes from 10MPG to 12MPG.
This also explains why I only drive it on weekends...