Apple again

[Nika]

So I got cought up in Apple fever today and we bought another 10 shares, bringing our total AAPL holdings to 40 shares. Stock options are too risky at this point, but as far as stock goes, I think close to 600 by the end of the year is not unreasonable.

I followed the ipad 3 announcement, and it looks like a thing of beauty. I ordered one - and DH will get my current ipad 2.

Not sure why the stock did not rize after the announcement -- the new ipad had everything that techies expected.

Though from past history, people were always disappointed with whatever Apple unveiled, people(who write articles about it) said it would not do so much better, or they would wait to buy it. And the stock usually goes down following a large announcement. But than they do buy it, and the product does really well. After it is actually rolled out and people start using it, it catches on. This seems to be the pattern.

This time it went down only few dollars and got back to flat. So I take it as an above average event.

Besides, that is one gorgeous and functional machine, and I can't imagine it won't do very well.

[Slug]

My favorite thing about Apple is that the only thing Apple I own besides the shares is an old iPod.

[thekid]

is that over $20k in a single stock? what percentage is that of your overall portfolio?

my only exposure to apple is indirectly through broad based US index funds (of which apple is the single largest holding).

[bjl584]

Rumors are a dividend to start soon around 3 to 3.5%. Not bad, but I can get a better return elsewhere.

[thekid]

Rumors are a dividend to start soon around 3 to 3.5%. Not bad, but I can get a better return elsewhere.

a p/e of 15 for a stock paying a 3-3.5% dividend with growth potential doesn't sound unreasonable to me. i just think concentrating holdings on an individual stock is quite risky on principle.

[kv968]

Rumors are a dividend to start soon around 3 to 3.5%. Not bad, but I can get a better return elsewhere.

They gotta do something with the money. Give it back to investors or buy a country or something

I think the bigger advantage to them offering a dividend isn't the dividend itself but the fact that that'll allow mutual funds which are mandated to invest in only dividend paying stocks to start buying into it.

[YLTL_Dan]

I fought the Apple "cult" for a long time, but I finally bought into and now we (mostly DW) have two iPhones, iPad, and a MacBook Pro. She does a lot of video editing so she kinda needs it.

Now I'm not only bought in on their products, but I'm also bought in on their shares. They have an incredible brand and continue to deliver beyond what customers expect.

Typically stocks rise on the rumor and sell on the news so that action isn't unexpected. I'm not in the game of making stock predictions, but I like it long term.

On a side note, Apple is my second largest single stock holding and comprises of about 8% of my total portfolio. The majority of my investments are Vanguard index funds.

[Nika]

Just because people feel they should be paying dividents, does not mean that they will.
The dividend rumor is around forever. I don't think that it will happen.
They don't prioritize their stock price and don't actively try to increase it.
They have always been concentrating on just making great products and tons of profit. That what helped them grow the way they did - they don't show much concern for the "current quarter".

[bjl584]

Just because people feel they should be paying dividents, does not mean that they will.
The dividend rumor is around forever. I don't think that it will happen.
They don't prioritize their stock price and don't actively try to increase it.
They have always been concentrating on just making great products and tons of profit. That what helped them grow the way they did - they don't show much concern for the "current quarter".

Whether they ever pay a dividend or not, I most likely won't become an investor. To tie up that much capital in a single company doesn't appeal to me. Especially when I could take that money and invest it elsewhere in companies that have a higher potential for returns and that pay a high dividend. I just feel that I could do a lot better with say 25K than invest it in 50 or so shares of Apple.

[KTP]

One thing that excites me about the Apple Ipad3 is the huge bandwidth issues it will cause with 4G providers (that sexy screen streaming HD)

Alcatel-Lucent has been trading rock bottom for $2.20 recently and yet has some of the fastest telecommunications equipment out there.

I am looking for at least a triple over the next year, but would not be suprised with a quintuple.

So yeah, you might get 100% on Apple if it becomes the first trillion dollar company, but my money is on making 300% to 500%

[ea1776]

Apple is my second largest single stock holding and comprises of about 8% of my total portfolio. The majority of my investments are Vanguard index funds.

Since you idx's, AAPL is probably an even larger portion of your portfolio!
Lol

Sent from the _original_ iPad.

[ea1776]

So yeah, you might get 100% on Apple if it becomes the first trillion dollar company, but my money is on making 300% to 500%

Ahhhhh... and with the prospect of higher returns comes higher risk.
Remember, cheap stocks are cheap for a reason. ;-)

Disclosure: long AAPL big time and know 0% abOut alcatel lucent. Good luck!

[ea1776]

They gotta do something with the money. Give it back to investors or buy a country or something

I think the bigger advantage to them offering a dividend isn't the dividend itself but the fact that that'll allow mutual funds which are mandated to invest in only dividend paying stocks to start buying into it.

As tim cook mentioned at annual shareholder's meeting a few weeks back, the benefit you get in price from issuing a dividend is very short term. There is research to back that up.

Further, cook himself has 1 million shares (must be nice!). He lives in California with a state income tax of ~10%. With the cap gains taxes likely going up after 2012, do you think cook and the board of dirs really have any big incentives for issuing a dividend? I'd rather those executives manage the cash than hand it back out (I'd just re-invest anyway ). The biggest cheerleader for AAPL dividends is Uncle Sam!

[KTP]

Ahhhhh... and with the prospect of higher returns comes higher risk.
Remember, cheap stocks are cheap for a reason. ;-)

Disclosure: long AAPL big time and know 0% abOut alcatel lucent. Good luck!

your Apple was $7 not very long ago...

[kv968]

As tim cook mentioned at annual shareholder's meeting a few weeks back, the benefit you get in price from issuing a dividend is very short term. There is research to back that up.

Further, cook himself has 1 million shares (must be nice!). He lives in California with a state income tax of ~10%. With the cap gains taxes likely going up after 2012, do you think cook and the board of dirs really have any big incentives for issuing a dividend? I'd rather those executives manage the cash than hand it back out (I'd just re-invest anyway ). The biggest cheerleader for AAPL dividends is Uncle Sam!

A ONE TIME dividend is very short term. Issuing and raising a dividend is a very long term benefit. Where is your research that proves different?

When you're sitting on $100 billion, there's really no need for that much money on the books. I know they need money for R&D and maybe some acquistions, but if they're not going to acquire a country, might as well give some back.

Although I'm sure it's not, but if Cooks' and the boards' decision not to impliment a dividend is because of how it would affect their own tax situation, that wouldn't be a good way to run a company.

And if you did reinvest the dividend, which I think would be a good idea, in the long run you'd have even more shares.