Originally Posted by anantksundaram
You're the same guy (see above) that refers to the importance of "legitimate news" as opposed to "FUD."
Ug, man this is painful. I said "No kidding. And either you are buying on legitimate news or selling on "FUD" "
I don't know if you are a native english speaker, but the phrasing I used their implies that someone else is doing the talking there, belittling the very suggestion that there is a good reason to sell.
I was bemoaning the sad (and expensive) fact that in places like this, those who think the stock should go up and are buying are cheered and lauded for their great research, and those who sell are considered idiots who were wrong at 30, 50, 90 and 120, and THUS will be wrong again at 150. Even those of us like me who bought well below $70 and were smart until the very moment they sold, at which point they became dumb herd followers. Get it?
Unless you have inside information at this point, what 'legitimate news' did you base your judgement that '145 was too high' to buy or sell?
Or, was it just 'FUD,' like it has been for everyone else, including yourself?
The reason I sold, as I've said many times, is that Apple stock has been bid up far beyond its fundamental value by breathless Apple lovers, who see little importance in the present value of future cash flows and see everything in terms of world domination.
Yes Apple is doing great, yes they have great, popular products. But they have 5% of the computer market, 70% of the MP3 player market, and hope someday to have 1% of the cell phone market. Those facts, plus the as yet unaccomplished cell phone goal, do not give you a $150 billion dollar company unless there are a seriously large number of fools out there buying the stock and not questioning why they are doing it.
It's like drafting Kwame Brown 1st in the NBA draft - having great potential in the future is great, but at some point you have to actually play ball, and if we're waiting 5 years for Apple to reach the levels of market penetration they would need to justify TODAY's stock price, then something has to give.
And it will - you can either listen to opposing viewpoints or drink the Kool Aid which says that Apple stock should be at 200 today.