AAPL is going down to $35-40 range

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Of course it is technical ! Why is Apple down 4% today? Any news? Nope.
Institutionals are selling like hell, because Apple is overweight in their portfolio.
Why was Apple down 45% in 2012/start of 2013 ? Because of fundamentals? Of course not.
Institutionals were selling like hell, because Apple was overweight in their portfolio.
Same story. History repeats.

CM

Good and practical insight. When big buckets start to tilt and some outright unload then it's not a rain but a rain storm.

Another danger to heavily owned company like Apple is if the general market starts to go south then managers are forced to sell profitable and heavily owned stocks to create liquidity for the fund's exiting investors.

 

[ScalperJoe]

Borrowing 17Bn costs about 170MM/year in interest expenses. They would have had to repatriate almost 25Bn to cover the tax liability. If they can earn 2% on that 8Bn that they would have paid in taxes, it will pay for the interest on the bond.

Yes, it was a cheaper alternative to repatriation, given the U.S. inflated tax rate.

 

[ScalperJoe]

Another danger to heavily owned company like Apple is if the general market starts to go south then managers are forced to sell profitable and heavily owned stocks to create liquidity for the fund's exiting investors.

That's true, but it works both ways...

Another benefit to heavily owned company like Apple is if the general market starts to go north then managers are forced to buy profitable and heavily owned stocks to satisfy demand for the fund's entering investors.

 

[Chris Mac]

So you have to own one major cap stock through this cycle. What is it?

Good question, specially yesterday when majority of S&P stocks is at least minus 2 percent .
It seems we are in a bear market or at least a big 2011 correction.
So one major position for managers will be cash. Yes cash.
Then maybe they will switch for big "defensive" stocks. (or rather what they consider to be "defensive" now). I imagine they can find some good candidates in telecoms and defense ? Perhaps energy later?
But be sure : Healthcare, biotech and growth companies like Apple will not be considered "defensive". No way. Strong SELL !

CM

 

[newwurldmn]

If you have to own one mega cap stock today and hold it for the next 1 year. Cash is not a mega cap stock. What will it be? You are an asset manager. You must have an opinion.

 

[Chris Mac]

If you have to own one mega cap stock today and hold it for the next 1 year. Cash is not a mega cap stock. What will it be? You are an asset manager. You must have an opinion.

Sorry, but I trade derivatives & trackers, not stocks.
Anyway, for "intellectual purpose", I will buy Telecoms stocks : Verizon, T Mobile or Sprint if possible (floating is low).

CM

 

[Lloyd W. Coutee]

I would not chase when a stock gaps up like this especially when it's at the yesterday's resistance. I'll be on the sideline looking for how it unfolds at the 110-112 resistance to decide to go long or short.

 

[S2007S]

APPLE REVENUE LAST QUARTER WAS $49.6 Billion out of the $49.6 Billion in revenue the
iphone revenue was $31.4 Billion

more than 50% of apples revenue comes from just the iphone alone, if iphone sales were to slow just a little, little, little bit and revenue started to decline apples stock could easily lose 25% without a problem.....everything has to be perfect for apple to achieve the growth they have today....



carlquintanilla
@carlquintanilla
Apple makes more money on the #iphone than any other tech company makes on, well, .. anything
rvrb.it/1LW0lel

10:12 AM - 09 Sep 2015

 

[S2007S]

After reading the revelations about steve jobs you realize that he wasn't such a great guy and that if wasn't for Steve Wozniak apple would have never existed.... from all the interviews and articles I have read about Mr. Wozniak is that he is such a down to earth guy, just really a good guy who just wanted to create and didn't care about money or stepping over people to get what he wanted, just a happy happy all around kind of guy....

SEP 8, 2015 @ 6:05 PM
The 13 Most Unflattering Revelations in the New Steve Jobs Documentary

http://www.esquire.com/entertainment/movies/a37752/steve-jobs-man-in-the-machine/

 

[ScalperJoe]

APPLE REVENUE LAST QUARTER WAS $49.6 Billion out of the $49.6 Billion in revenue the
iphone revenue was $31.4 Billion

more than 50% of apples revenue comes from just the iphone alone, if iphone sales were to slow just a little, little, little bit and revenue started to decline apples stock could easily lose 25% without a problem.....everything has to be perfect for apple to achieve the growth they have today....

This is why AAPL must focus on expanding its market through other products such as the new iPad announced today, iWatch, AAPL TV, etc.

It's about cross selling and "upselling" to new and existing customers.

Regarding iPhone sales, they will continue to release newer versions to generate revenues. People who are very loyal to AAPL products will keep upgrading from the iPhone 4, 5, 6, etc.

Could the law of diminishing returns eventually take place? Sure, especially when they must generate $12 BILLION (about a 22% payout ratio of net income) just to cover the dividend on the common!