Who owns Apple stock? - DPChallenge Forums

Fujifilm XF 10-24mm f/4 R IOS

02/29/2012 03:09:51 PM · #1

My brother bought at $300, I've been watching since, but didn't buy in until yesterday at $530.

AAPL - N

Anybody else in for the ride?

Message edited by author 2012-02-29 15:12:09.

markwiley

Fujifilm X-Pro2

02/29/2012 03:24:55 PM · #2

Nice, Slip.

I own no stock. I only own an iPhone.

Leo

Apple iPhone Xr

02/29/2012 03:28:02 PM · #3

I also do not own stock. However, I do own lots of Apple products (and will continue to buy Apple stuff). I'll do what I can to help make your investment grow... haha :)

SDW

Canon EOS-60D

Tamron AF 28-300mm f/3.5-6.3 XR Di LD Aspherical IF for Canon

02/29/2012 03:37:38 PM · #4

I don't own apple stock but a nice jump today. Being leap-day, to bad the gains/losses wont count...a mock day of trading. :P

scarbrd

Leica M10

Leica 35mm f/1.4 Summilux M Aspherical MF - Black

02/29/2012 03:41:21 PM · #5

I bought 60 shares at $25. Cost basis - $1500, today's value $32,640.

I've been meaning to sell, but the price won't stop going up.

Giles

Canon EF 24-70mm f/2.8L USM

02/29/2012 03:52:23 PM · #6

my friends granddad died last week and hes just told me his granddad had 3000 shares, funny considering my mates dad the son of the granddad works high up at IBM uk, apparently hes had them for years and he hes left them to the 27 grand kids, my mate is rather chuffed. hope it comes off but you never know with families and wills when big money involved. also inheritance tax is 40% here in uk

Message edited by author 2012-03-01 06:10:46.

02/29/2012 04:09:40 PM · #7

Originally posted by scarbrd:

I bought 60 shares at $25. Cost basis - $1500, today's value $32,640.

I've been meaning to sell, but the price won't stop going up.

Nice! Good for you!!!

Nikon AF-S NIKKOR 24-70mm f/2.8G ED

03/01/2012 11:47:36 AM · #8

Originally posted by Strikeslip:

Originally posted by scarbrd:
I bought 60 shares at $25. Cost basis - $1500, today's value $32,640.

I've been meaning to sell, but the price won't stop going up.

Nice! Good for you!!!

My apologies for buying in. I tend to buy at the top, and cause stock to plummet. My motto is buy high, sell low. You'd better keep an eye on your stock now, as I've probably given it the Slippy-Curse.

Neil

Fujifilm X-T30

03/01/2012 12:03:06 PM · #9

I bought in a 130, then again at 190 or something like that. Wish I bought more but it was in an IRA and I could only use existing contributions since I can't contribute to it anymore. So I sold my Symantec stock which had done ok, and used it for Apple. I also bought a small amount of Google, but that would have been better spent on the Apple stock!

Still my best purchase ever has been Microsoft stock. After all the splits, my average cost for that is under a dollar.

Leica 35mm f/1.4 Summilux M Aspherical MF - Black

03/01/2012 12:08:28 PM · #10

Does Apple do dividends? I would have some concern simply with the regression to the mean argument. If Apple already has the largest market cap of all US companies, what are the odds it's going to continue to outpace the market? Does that make sense? It takes a lot to be #1, but it takes even more to be #1 plus 50%...75%...100%.

The stock is bound to stabilize and cease having a growth stock tragectory. Of course I'm no professional so my thinking isn't worth a ton.

scarbrd

Leica M10

03/01/2012 01:49:13 PM · #11

Originally posted by DrAchoo:

The main factor in the rise of Apple' stock price is the P/E ratio. Even at current prices is it still under less profitable and stable companies like Netflix and LinkedIn. Until the P/E comes in line Apple will still be considered a growth stock. Some are predicting $700/share before the rise levels off.

As for the dividend, Apple has never paid one. Apple does have over $100 billion in cash and no debt. There has been chatter about a 3-5% dividend. That will reduce the cash by about half. Tim Cook is on the record saying no company needs $100 billion in the bank. I'll believe it when I see it.

03/01/2012 02:01:25 PM · #12

Originally posted by scarbrd:

Originally posted by DrAchoo:
Does Apple do dividends? I would have some concern simply with the regression to the mean argument. If Apple already has the largest market cap of all US companies, what are the odds it's going to continue to outpace the market? Does that make sense? It takes a lot to be #1, but it takes even more to be #1 plus 50%...75%...100%.

The stock is bound to stabilize and cease having a growth stock tragectory. Of course I'm no professional so my thinking isn't worth a ton.

The main factor in the rise of Apple' stock price is the P/E ratio. Even at current prices is it still under less profitable and stable companies like Netflix and LinkedIn. Until the P/E comes in line Apple will still be considered a growth stock. Some are predicting $700/share before the rise levels off.

As for the dividend, Apple has never paid one. Apple does have over $100 billion in cash and no debt. There has been chatter about a 3-5% dividend. That will reduce the cash by about half. Tim Cook is on the record saying no company needs $100 billion in the bank. I'll believe it when I see it.

My point is that if the P/E is far above historic S&P ratios (about 16), then the risk certainly exists that it will regress to the mean. I mean, answer me this, can you name a company that entered into, let's say, the Top 10 of US market caps, and didn't contract it's P/E over the next two years? I actually don't have enough knowledge to know if such a company exists, but I suspect they are either non-existant or few and far between.

ADDENDUM: I actually had to look up Apple's P/E and it's listed as 15.49 which is entirely within historic ratios, but I wouldn't declare that P/E to be indicative of a growth stock.

Nikon AF-S NIKKOR 24-70mm f/2.8G ED

03/01/2012 02:38:49 PM · #13

Originally posted by DrAchoo:

...if the P/E is far above historic S&P ratios (about 16)....
... Apple's P/E and it's listed as 15.49 ...

I read an article recently that put nasdaq stocks at 13, and concluded that Apple had room for growth (16-13). This is all meaningless to me as well, however.

Neil

Fujifilm X-T30

03/01/2012 02:50:14 PM · #14

Well I don't REALLY know much about what's really behind the stock market, but in my early investing days stocks (i.e., when I bought MSFT) used to split to keep the price down. I am not sure why Apple and Google don't seem to ever do this.

Anyone know?

Message edited by author 2012-03-01 14:50:24.

Ozzie

Nikon D90

Nikon AF-S Nikkor 24-120mm f/4G ED VR

03/01/2012 03:10:16 PM · #15

I'm wishing we'd bought Apple shares. We did sell the MS ones when they split, it helped us put a good chunk down for our house deposit. I have a feeling Apple might do a split, time will tell.

Covert_Oddity

Nikon D700

Nikon AF-S NIKKOR 24-70mm f/2.8G ED

03/01/2012 03:55:06 PM · #16

I told my wife we should buy some a while ago when they were at about $30, I had a feeling then Apple were about to go big, never of course imagined just how big, and of course, we never bought any :(

Nikon AF-S Nikkor 70-200mm f/2.8G ED VR II

03/01/2012 04:18:40 PM · #17

Originally posted by Neil:

No reason that I know of other than it's "sexy" not to split. I think they look to Berkshire as the model for this view where stocks are currently trading at $118,000 and change. If it's good enough for Buffett, it's good enough for them.

IAmEliKatz

Nikon D5

03/01/2012 04:38:04 PM · #18

I bought in a 179 and haven't sold yet :)

scalvert

Leica 35mm f/1.4 Summilux M Aspherical MF - Black

03/01/2012 04:38:21 PM · #19

I bought at $91 and added some more at $130, so that has turned out to be a good move. Selling 1200 shares before two splits... not so much. :-(

Tim Cook has downplayed the idea of another split, but I wouldn't be surprised to see a dividend announced on Tuesday. Apple is setting new highs on a daily basis and boasts the largest market cap of any US company, yet there is little comparison to past leaders or even Apple's own history. Other top companies saw profit growth on the order of 5 or 10%, while Apple is coming up with 50 to 75% increases and accelerating! When Microsoft and Cisco were the kings, they held something like 90% market share and worldwide distribution, so there was nowhere to go for further growth. Despite its recent successes, Apple still has a minority share in their product markets (aside from tablets), and plenty of untapped distribution points (adding China Telecom will be huge). So not only is there still lots of room for growth, but Apple remains singularly capable of creating entirely new categories and ecosystems with a management and design team trained by Steve Jobs for over a decade. Apple enjoys customer satisfaction rates far exceeding any competitor and an interconnected product line that encourages multiple purchases to maximize a customer's investment while locking them into the brand. The 2009 iPhone 3GS still outsells any Android model, and the iPad 3 to be announced next week will make it even more difficult to challenge the market leader in tablets. This juggernaut is only getting started.

scarbrd

Leica M10

03/01/2012 04:56:32 PM · #20

Originally posted by DrAchoo:

I actually had to look up Apple's P/E and it's listed as 15.49 which is entirely within historic ratios, but I wouldn't declare that P/E to be indicative of a growth stock.

The P/E relative to other stocks in the same category is what gives you the potential for growth.

Netflix P/E - 27.1
LinkedIn P/E - 790.91
Google P/E 20.91

Apple P/E - 15.5

What this means in practical terms is that investors are paying more for a dollar in profit with NetFlix, Google and LinkedIn than they are for Apple. That is the measure of P/E.

Apple's stock price can increase by 33% and still be on par with Google. That's why some analysts are saying that Apple is currently under-valued.

03/01/2012 05:19:18 PM · #21

Well, don't listen to me, but in my simple world Apple and Google don't have too much in common. Google is an information/advertiser company and Apple is a digital music/hardware company (of course they both do a bunch of other things on the side). Netflix I would ignore because their stock has taken a huge hit and their P/E probably means they are undervalued rather than they are going to grow into their P/E. LinkedIn, I believe, is tiny, new and definitely in the growth phase (if it survives).

Anyway, my personal feeling is the ship has sailed and I would not consider buying at this point. Already owning and holding could be a completely different proposition. Personally I don't forsee Apple suddenly plunging in value, but I just see it slowing in growth and matching the market at large over time.

scalvert

03/01/2012 05:35:04 PM · #22

Originally posted by DrAchoo:

my personal feeling is the ship has sailed and I would not consider buying at this point. Already owning and holding could be a completely different proposition. Personally I don't forsee Apple suddenly plunging in value, but I just see it slowing in growth and matching the market at large over time.

That's almost verbatim what my buddy said at $260.

03/01/2012 05:48:13 PM · #23

Originally posted by scalvert:

Originally posted by DrAchoo:
my personal feeling is the ship has sailed and I would not consider buying at this point. Already owning and holding could be a completely different proposition. Personally I don't forsee Apple suddenly plunging in value, but I just see it slowing in growth and matching the market at large over time.

That's almost verbatim what my buddy said at $260.

Ya, I know. I could be wrong.

Look at it this way with Google.

If you had bought at the beginning, you'd be up 400-500%. If you waited 6 months...200%. 1 year...100% 18 months...you'd actually have been better off just buying QQQQ.

I tend to think that by the time the stock has shown massive growth, it's too late. The risk of regression usually (but not always) outweighs the possibility of continued massive growth.

scalvert

03/01/2012 06:40:40 PM · #24

Originally posted by DrAchoo:

Apple and Google don't have too much in common.

Right. If people were lining up around the block for Google products, if Google couldn't produce enough to meet demand, if entire categories were redesigned to emulate Google products, if Google had three or four products at the top of Christmas lists, if Google had the highest producing retail stores in the world, if Google's most profitable product had only 20% market share in a category that grew 60% last year and still hadn't tapped some of the largest markets, if Google had no debt and more cash than the GDP of Egypt, THEN you you might have something to compare.