Apple shares slide on analyst warning

2

Comments

  • Reply 21 of 46
    SpamSandwichSpamSandwich Posts: 33,407member
    Quote:

    Originally posted by trumptman

    I think I'm almost even on appl again after continually buying on the dips and selling on the climbs. I lost a serious initial bit of change when I first got in because I'm an idiot.(or at least I was back then commiting that amount of money without even knowing what a stop-loss was back then)



    This thing is one hell of a rollercoaster though. Six Flags has nothing that can beat the appl stock chart.



    Thank goodness I didn't have a large breakfast.



    Nick






    I'm just hoping it hits 51 soon (before ascending like a rocket to the heavens once more)...
  • Reply 22 of 46
    Quote:

    Originally posted by wnurse

    I can simplify it for you. Before the stock stumbled, it's price was based on WHAT THE STREET HAD INITIALLY EXPECTED. If they had gone by what apple guidance, the stock would not have been this high in the first place and it would not have dropped. Get it?.



    Now the stock price is merely reflecting what investors are thinking, just like it always does. Apple could be the healthiest company in the world and make scads of money and it's stock price can still drop. That could be true cause the current stock price is based on inflated expectations. To beat a dead horse, say apple said they would double their revenues and analyst expected triple, then their stock would soar and if you bought when low, you'd be happy but the stock price would have no relation TO WHAT APPLE SAID. Get it?. If apple then earnings then come in line with their prediction, it goes down. That is why a previous poster who said apple stock declines when they announce revenues is right. The revenues could be great (could be the best in company history even) but unfortunately, not in line with analyst inflated expectation and hence does not support the current stock price. The way i look at it is.. if you are happy when the analyst inflated expectation makes you ton of money, then live with it when the analyst inflated expectation loses you ton of money.. cant have your cake and eat it too. Just be smart and know when to buy and sell. Pay carefull attention, become smart about how they do their prediction and maybe (just maybe) you can use the analyst to make money at their game.




    First of all, I have no Apple stock. I do not have an investment that causes me to react emotionally to this this kind of article.



    I have a coworker that thinks he knows the market too, and the two of you sound an awful lot alike. It's not exactly comforting. Basically, what you are saying is that the market is based 90% on emotion (feelings and perceptions) and predictions (speculation that may or may not have any basis in reality), and 10% on reality (what the company is actually doing and the value of the company's assets - things that can be researched and documented). IF I had Apple stock, I might be thrilled with a high share price, but could never be comfortable with it if the company's financials and business plan did not support the share price. It makes no logical sense to buy or sell based on analyst comments. The analysts are well-compensated for their comments by businesses that make a killing off of the effect of those comments. Analysts laud a company's performance and predict outrageous gains, driving the price up. Their cohorts, generally institutional players, short the stock. The analysts then bemoan the company's failure to keep up a wildly speculated pace or just make something up altogether, eroding "investor confidence" in the company and driving the share price back down. Their cohorts cash in and they all share the wealth. Do you think that individual investors are affecting the price this much? I don't think so.



    Quote:

    Originally posted by wealjays

    What I did not realize was that the market is controlled by idiots with warped logic. People with intelligence get hit the hardest b/c we can't lower ourselves to think like they do.



    I'm not really a market player and certainly not one to give advice. One stock in which I invested $2500, is gone but should have a distribution of company assets to shareholders someday soon, which will not show a gain, and the other, which garnered $500 of my hard-earned cash, has lost 90% of its value and will probably be gone soon. I, too, did not realize that "the market" and "the street" are carefully-crafted fiction, loosely based on reality. The market is gambling, plain and simple. As an individual investor, the only way to make serious gains in the market is to be lucky enough to have inadvertently ridden on the coattails of some institution's plan to manipulate a stock or to understand how the fictional stories are crafted and be able to anticipate the next chapter. You cannot merely research a company's assets and business plan, determine that they are undervalued at their current share price, buy in, and expect that the situation will eventually correct itself by an increase in the share price relative to the company's actual documented and reported value. I believe that analysts are merely tools that institutional investors use to prey on individual investors. So, I'll never be a big market player unless I can turn off the logic center of my brain and learn to play the game.
  • Reply 23 of 46
    trumptmantrumptman Posts: 16,464member
    Quote:

    Originally posted by macbear01

    First of all, I have no Apple stock. I do not have an investment that causes me to react emotionally to this this kind of article.



    I have a coworker that thinks he knows the market too, and the two of you sound an awful lot alike. It's not exactly comforting. Basically, what you are saying is that the market is based 90% on emotion (feelings and perceptions) and predictions (speculation that may or may not have any basis in reality), and 10% on reality (what the company is actually doing and the value of the company's assets - things that can be researched and documented).




    You are probably right when it comes to daily trends, but when it comes to the overall direction and value of a stock, it is based in reality.



    Quote:

    IF I had Apple stock, I might be thrilled with a high share price, but could never be comfortable with it if the company's financials and business plan did not support the share price.



    The price, like everything else in the world, is simply based on what others are willing to pay. If something comes along that will grow profits and people want a piece of that future value, they may or may not pay a little premium up front on what the current numbers say.



    Quote:

    It makes no logical sense to buy or sell based on analyst comments.



    Agreed.



    Quote:

    The analysts are well-compensated for their comments by businesses that make a killing off of the effect of those comments. Analysts laud a company's performance and predict outrageous gains, driving the price up. Their cohorts, generally institutional players, short the stock. The analysts then bemoan the company's failure to keep up a wildly speculated pace or just make something up altogether, eroding "investor confidence" in the company and driving the share price back down. Their cohorts cash in and they all share the wealth. Do you think that individual investors are affecting the price this much? I don't think so.



    Here is the deal though. If you realize what these folks are doing and why they are doing it, why be one of the sheeple who wander along to the slaughter? Why not follow the trend of those institutional folks who you claim are making a killing?



    Someone made up some news yesterday because they want to drive the stock down to $49 or so (a generally agreed upon safe numbers) buy a boatload of it and then watch it go back up.



    So why not simply not buy before $49, buy then and make a killing. No one is telling that you have to hand over your money then.



    It is one thing to see the nature of the market and be pissed off about it. It is entirely another to see it and take advantage of it.



    Quote:

    I'm not really a market player and certainly not one to give advice. One stock in which I invested $2500, is gone but should have a distribution of company assets to shareholders someday soon, which will not show a gain, and the other, which garnered $500 of my hard-earned cash, has lost 90% of its value and will probably be gone soon.



    Sorry to hear that.



    Quote:

    . I, too, did not realize that "the market" and "the street" are carefully-crafted fiction, loosely based on reality.



    Now that you know this, you can make back much more than you lost. It is a relatively cheap education.



    Quote:

    The market is gambling, plain and simple.



    It's simply human behavior and informed averages. You gamble when you get in your car to drive to work. There are no guarantees.



    Quote:

    As an individual investor, the only way to make serious gains in the market is to be lucky enough to have accidently ridden on the coattails of some institution's plan to manipulate a stock or to understand how the fictional stories are crafted and be able to anticipate the next chapter.



    You say this like it is a bad thing. You let some big company do all the research, make all the buys to move the stock, and do all the manipulation to insure a result and all you get to do is grab the profits. Life is so terrible.



    Quote:

    You cannot merely research a company's assets and business plan, determine that they are undervalued at their current share price, buy in, and expect that the situation will eventually correct itself by an increase in the share price relative to the company's actual documented and reported value.



    You can do this, but you have to be willing to buy and hold very long. (10+ year view) In the meantime there are places where you money might earn a better return or not. It will earn some return doing what you describe, probably a pretty decent one.



    Quote:

    . I believe that analysts are merely tools that institutional investors use to prey on individual investors. So, I'll never be a big market player unless I can turn off the logic center of my brain and learn to play the game.



    Silly, don't you realize that what you have just done is turned ON the logic center of your brain. People are sheep and will do whatever these nimrods tell them. It is therefore logical to learn how to make money off that behavior. We live in a world where people get drunk and let bulls chase them through streets, where they jump out of planes for recreation, where we post on a forum about our hard-on for some silicone and plastic named after a fruit.



    You've taken the first step.



    "If you are a dreamer, a wisher, a liar,

    A hope-er, a pray-er, and magic bean buyer...

    If you're a pretender, come sit by my fire

    For we have some flax-golden tales to spin,

    Come in, come in!"



    Nick
  • Reply 24 of 46
    Quote:

    Originally posted by trumptman

    You are probably right when it comes to daily trends, but when it comes to the overall direction and value of a stock, it is based in reality.





    It is based on the perception of reality.

  • Reply 25 of 46
    jdwjdw Posts: 1,385member
    This story reaffirms all I've written about these nutty "it's gonna hit $90 a share" analyst news reports. No matter how many good reports of optimism there may be from some analysts, it takes only one bad one to throw the stock into the garbage.



    You cannot get upset over the stock slide because it happens to every company and is the way the US stock market works (which of course, is quite lame). But the fact is, AppleInsider needs to stop putting up all the glowing reports of $99/share or $90/share or $70/share because everyone now knows that AppleInsider is just trying to sing to the choir.



    And so, AppleInsider, please stop putting up these glowing projections from analysts until the stock goes back beyond $70.



    Thank you.
  • Reply 26 of 46
    blue2kdaveblue2kdave Posts: 652member
    For those complaining, remember that you only lose money if you sell. I held Apple for over ten years and went through periods of an 60% loss and %80 loss, on paper. I held and sold half of it last spring at close to a %1000 percent gain. Think long term. Apple is still in a great position going forward. Trends seem to strengthen Apple's product roadmaps rather than weaken.
  • Reply 27 of 46
    jdwjdw Posts: 1,385member
    Quote:

    Originally posted by blue2kdave

    ...you only lose money if you sell.



    I completely agree with you Dave. I've been an Apple shareholder since 1998. Haven't sold yet. I simply take issue with all the fanatical analyst news posted here even though the stock has sunk day by day since the first part of this year.
  • Reply 28 of 46
    wnursewnurse Posts: 427member
    Quote:

    Originally posted by wealjays

    Great post wnurse.



    But what if AAPL's earnings beat both their and analysts expectations? Like I think will be the case with the Macs (not the iPods).




    Then prepare to watch the stock shoot up and be merrily whistling a tune as you dance and skip to work (other employees will wonder what got into you though). Of couse, this assumes you bought stock when it is down.
  • Reply 29 of 46
    wnursewnurse Posts: 427member
    Quote:

    Originally posted by Performa636CD

    It is based on the perception of reality.



    I can't really blame the analyst though. Think about it. How many companies you hear that offer glowing predictions when they know it's false? (Enron is the most famous). Creative (they will destroy the ipod prediction, etc). Netscape (our browser is better, we are not worried about IE), etc. Why should an analyst depend on what the company say totally?. Yes, obviously you have to use what the company says but you also have to use your experience and knowledge and gut instinct. Are the analyst always correct?.. of course not!!!.. And in case you don't think apple plays the investment game, think again. I'm sure when apple released the Cube initially, they also predicted wonderfull sales figures. The investment game is a game for the big boys. Little investors like you and me have no business stepping in. We risk getting crushed. So don't go around totally blaming the analyst. They have been burned too many times by companies. They are paid to come up with their own analysis instead of following a company predictions like sheep. BTW, very few big institutional investors lose money like we do. Yeah, you may think the analyst suck but they are not stupid. They have been doing this game for a long time.

    Also, realize that a stock price might have been valid until external events impact it. Example of an external event that can impact apple stock is if microsoft actually builds a portable player. Say what you want about microsoft but they are the 800lb elephant in any room. Should ms announce a player, expect apple stock to drop like a stone (as it should). MS may not overtake Apple but their market share will not be 0% either. That means somebody has to suffer. Sure, smaller players like creative will lose but so will apple. It's just makes sense. MS will gain market share (that prediction is safe as the sun will rise in the morning) so on hold, the ride could get bumpy. Investing is not for the faint of heart.
  • Reply 30 of 46
    SpamSandwichSpamSandwich Posts: 33,407member
    Just picked up more AAPL at 51. Thank you... Thank you very much.
  • Reply 31 of 46
    Wnurse,



    Just wanted to thank you for your insightful and erudite commentary on AAPL.



    The more I understand about the Market the more I realize how much FUD is generated, and for some reason AAPL seems to be a target for a lot of it.

    As an AAPL Long I appreaciate your insight, particularly as a lot of other boards seem nothing less then a venue for FUD. With Longs and Shorts throwing insults at one another.
  • Reply 32 of 46
    SpamSandwichSpamSandwich Posts: 33,407member
    Quote:

    Originally posted by wnurse

    Should ms announce a player, expect apple stock to drop like a stone (as it should). MS may not overtake Apple but their market share will not be 0% either. That means somebody has to suffer. Sure, smaller players like creative will lose but so will apple. It's just makes sense. MS will gain market share (that prediction is safe as the sun will rise in the morning) so on hold, the ride could get bumpy. Investing is not for the faint of heart.





    1- If AAPL drops further, I'd consider it another good buying opportunity.



    2- Creative is on the verge of extinction, not just "losing".



    3- It will be a cold day in hell by the time MS takes a significant share of legal downloadable music away from Apple, IMO. Unless colluding music companies up and wholesale abandon the iTunes platform... not bloody likely!



    4- Investing is not difficult, but for the foolish investor plan to lose your shirt. Pay attention to people who actually make money in their investments and pattern your savings/investments after them. Little by little you will gain knowledge and confidence. You can't do anything dumber than NOT learn.
  • Reply 33 of 46
    Quote:

    Originally posted by SpamSandwich

    1- If AAPL drops further, I'd consider it another good buying opportunity.



    2- Creative is on the verge of extinction, not just "losing".



    3- It will be a cold day in hell by the time MS takes a significant share of legal downloadable music away from Apple, IMO. Unless colluding music companies up and wholesale abandon the iTunes platform... not bloody likely!



    4- Investing is not difficult, but for the foolish investor plan to lose your shirt. Pay attention to people who actually make money in their investments and pattern your savings/investments after them. Little by little you will gain knowledge and confidence. You can't do anything dumber than NOT learn.




    Of course it' s not just about AAPL if the world market bubble pops expect Apple shares along with everyone elses to plummet...
  • Reply 34 of 46
    sunilramansunilraman Posts: 8,133member
    All I have to say is two things. 1. Analysts suck b*lls. 2. I told my brother a few months ago, it's a bit late to get in on apple. He nonetheless bought at $62. I think he just liked the company so much he wanted to be a shareholder.



    Oh, and analysts suck b*lls big time. They can get F*KED.
  • Reply 35 of 46
    sunilramansunilraman Posts: 8,133member
    [QUOTE]Originally posted by SpamSandwich

    .......

    2- Creative is on the verge of extinction, not just "losing".

    .......







    It was the integrated audio on motherboards that was the stomach-pummeling blow. The iPod was the knockout punch.

    *Sigh* all we have now are distant memories of Sound Blaster in the 90's and crappy Zen mp3 players floating around (I've spotted a few, poor bastards that got them instead of an iPod).
  • Reply 36 of 46
    SpamSandwichSpamSandwich Posts: 33,407member
    Quote:

    Originally posted by sunilraman

    It was the integrated audio on motherboards that was the stomach-pummeling blow. The iPod was the knockout punch.

    *Sigh* all we have now are distant memories of Sound Blaster in the 90's and crappy Zen mp3 players floating around (I've spotted a few, poor bastards that got them instead of an iPod).




    How true. Heh, heh.
  • Reply 37 of 46
    sunilramansunilraman Posts: 8,133member
    (rambling deleted)
  • Reply 38 of 46
    wnursewnurse Posts: 427member
    Quote:

    Originally posted by sunilraman

    All I have to say is two things. 1. Analysts suck b*lls. 2. I told my brother a few months ago, it's a bit late to get in on apple. He nonetheless bought at $62. I think he just liked the company so much he wanted to be a shareholder.



    Oh, and analysts suck b*lls big time. They can get F*KED.




    This post was funny!!!!!!. I actualy laughed my ass off. I was worse than your brother.. i bought apple at 72 i think. Talk about losing your shirt. I've lost my shirt and the trousers are halfway down. If apple drops anymore, i might have to clutch the underwear for fear of losing them too!!!..

    Yeah, i know, i know.. i did not take my own advice (i liked apple too ok?). At the time, i thought everything was merry. Luckily, i did not buy a lot at 72 and if i keep buying the stock at different prices, the average price will go down further.
  • Reply 39 of 46
    Quote:

    Originally posted by wnurse

    This post was funny!!!!!!. I actualy laughed my ass off. I was worse than your brother.. i bought apple at 72 i think. Talk about losing your shirt. I've lost my shirt and the trousers are halfway down. If apple drops anymore, i might have to clutch the underwear for fear of losing them too!!!..

    Yeah, i know, i know.. i did not take my own advice (i liked apple too ok?). At the time, i thought everything was merry. Luckily, i did not buy a lot at 72 and if i keep buying the stock at different prices, the average price will go down further.




    .. been.. there done that... lost the t-shirt and extras too.
  • Reply 40 of 46
    jdwjdw Posts: 1,385member
    Quote:

    Originally posted by OfficerDigby

    .. been.. there done that... lost the t-shirt and extras too.



    Everyone complained the same way in the late 90's when Apple hit $13 a share. Then a few years later when AAPL was flying high, those same folks moaned, "We shoulda bought at $13."



    I would encourage everyone to buy $5,000 worth of AAPL now. If half the population of the US did this, I would be able to rack in a nice profit.



    Seriously, a lot of us bought based on what this STUPID analysts have said. And sadly, most of the most ridiculous projections of stock price (e.g., >$100/share) was posted time and time again on this very site. So as a rule of thumb: (a) never listen to analysts and (b) definitely never think about buying stock based on any AppleInsider story (which have a rather optimistic stock slant to them).
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