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Old 01-24-2013, 04:51 PM   #54
wizwor
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Quote:
Originally Posted by Penforhire View Post
[G]ive me that much money in the bank, that much continued revenue growth and profitability, and you can call me broken all day long.
You need to separate AAPL from Apple. I don't see Apple falling off the face of the earth -- Atari still makes games. The brand is enduring. That doesn't mean you should own the stock. And THAT is what all the analysts are speculating about.

AAPL stakeholders have different investment objectives -- most people invest for growth and some people invest for income. Growth investors are wondering if AAPL is a $400 stock or a $1000 stock. They are not going to hang around for the performance we are reading about now. Dividend investors might be loading up on AAPL because it's on sale...except that there are a lot of better dividend plays. Even at today's price, you'd need to hold $450 worth of AAPL to collect $10.60 annually in dividends. To make that dividend with GE, you'd only need to own $307.54 worth of the stock. And GE has been paying dividends for a lot longer than AAPL. Another way to say that is that one can make 1.5x the dividend by selling AAPL and buying GE.

I think that is the broken we are talking about. I wonder if any of the people posting in this thread own AAPL (I don't). If anyone does, has this week's news changed your buy-hold-sell thinking?

For the record, I do own GE. I owned it at $37, $6, and now at $22. I am collecting it for the dividend, so dips look like opportunities or sales to me. I still would not buy AAPL. I think their markets are crowded, have very few barriers to entry, and that lots of companies want to test those barriers.
Quote:
Originally Posted by Penforhire View Post
Microsoft is further past its big-growth phase than Apple and it still isn't "broken."
Microsoft is different. People spend a LOT of money on Office and Windows despite the fact that there are free alternatives. Microsoft has no competitor in this area. They use other ventures (Xbox, Windows Phone, Surface) to increase the reach of their brand. People don't love Microsoft, but the need its products.

Last edited by wizwor; 01-24-2013 at 04:58 PM.
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