"Also bought a small position in AAPL. Most likely this means AAPL is going to $300. :)"
The possible implication that you might be last to board this ship. And it might also be so that everybody now owns owns Apple - who's left to buy? - and many of them just following along with the crowd and the touts. (e.g. "famous" investor Barbra Streisand now, in Fortune).
Otoh, I had forgotten exactly how much of a value stock AAPL still is. This from today's Andrew Bary article in Barron's: online.barrons.com
"APPLE is still going strong, even as the company's shares have traded down 23%, to around $540, from a September peak of $705. None of the recent investor concerns -- lower margins, supply constraints, management changes, iPad competition, and the iPhone 5 map fiasco -- are major. It's true that Apple's earnings growth has slowed to a 23% rate from more than 100% a year ago, but that's understandable, given the company's $156 billion in annual sales.
Veteran UBS tech analyst Steve Milunovich recently wrote that it's a "good time" to add to positions in Apple before year end, with the stock trading near its lowest price/earnings ratio in five years after two disappointing quarters. He carries a price target of $780*. Apple trades for only 11 times projected profit of $49 a share in its current fiscal year, ending in September 2013. Strip out Apple's huge cash holding of $128 a share, and the effective P/E is just eight.
Even after implementing a dividend -- now providing a 1.9% yield -- and a modest buyback program, Apple should build cash at a rate of $40 billion annually. There's room for a higher dividend and a more aggressive share-repurchase program in 2013. Both could play well with investors."
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I read this article and because of it, decided to up my AAPL position on Monday. I was looking to add at about $505 level; instead, I'll just take a few more shares at current Friday closing price if I can get them and a few more later at lower price if stock continues down on no adverse news.
*I would like to see that $700+ on the stock -- mainly because that would give my sister a 100x bagger on her shares. I've long held the book "100 to 1 in the Stock Market" by Thomas Phelps, published in '72, and have wondered how - or if - anyone I know actually might achieve this level in their investing. She'd be the one and only, afaik.
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