Anyone planning on buying AAPL (Apple Stock)?

[kellogg9]

Now that the iPhone 5 is going to be released next week is anyone going to buy into their stock. But i would imagine the stock price has already considered the device and has already risen???

[Nika]

Let me tell you what happens every time that Apple announces a new device -- that day people are always disappointed because it did not meet some imaginary expectation and the stock goes down. Immediately a ton of articles comes out saying "why would you buy one", "I won't buy one", etc.

But than the device sells well anyway, and price goes up.
That's what happened every time so far.

BTW, I love AAPL

[Chart_oasis_man]

I think there are multiple risks with buying Apple stocks at the moment.
*People buying Apple products demand high quality and iPhone5 is the 1st iPhone where Steve Jobs did not cooperate (He was said to be the one who took care about the smallest details)
*Stock price is still quite high. Tree’s don't grow to the sky...
*September is usually a bad month on the stock market. Apple performs better in October.

By the way if Nika is right it would be wise to wait and buy Apple stocks after the first critics arrived about the new iPhone5.

[Snave]

Not buying anytime soon. I bought 40 shares about a year and a half ago at $340/share, so it has doubled (except for today's downturn).

[Nika]

I sold my option too soon. I sold it the day after iphone 5 came out for %520 profit. If I held it for 2 more days I would have cleaned out like a bandid.

[kv968]

I sold my option too soon. I sold it the day after iphone 5 came out for %520 profit. If I held it for 2 more days I would have cleaned out like a bandid.

You did what you felt was right and made a profit so don't kick yourself for it.

[tan fish]

I've made a few trades with AAPL the past month. I bought at about 655 and then sold at 677, then bought again at about 677 and am still holding. I'm relative new to AAPL as a stock but pretty familiar with the sector generally and a fan of their devices. My plan is to hold for the foreseeable future. They'll probably be another bump up when they announce/release the iPad "mini". I do believe the analysts who think there is significant upswing potential for at least the next couple of quarters.

[creditcardfree]

Since I buy into the S&P 500 I buy a little bit every month!

[Nika]

Just got another option
$700 strike Nov expiration, for $1675

bracing for the ride.
Am I crazy here?

[Nika]

The problem is the public does not understand the rules (meaning how Apple calculates its earnings).

[kv968]

Just got another option
$700 strike Nov expiration, for $1675

bracing for the ride.
Am I crazy here?

So looking for Apple to be around $720 in November? I can definitely see that happening.

I made a couple of bucks selling some puts on the recent downturn. Now I'm just waiting to see if it'll hit $650 or so then I'm going to start looking at some year-end calls.

Good luck.

[kv968]

It is like watching a horse race after you placed a $1,700 bet. But the problem is the public does not understand the rules (meaning how Apple calculates its earnings). So they often totally misjudge how the horse did.

What do you mean "the public doesn't understand how Apple calculates its earnings?" What's so different with them?

[Nika]

What do you mean "the public doesn't understand how Apple calculates its earnings?" What's so different with them?

Meaning that other companies, who count a phone sold when they sell it to a distributor, or even have a contract to sell it to distributor they can count phone as sold. In some cases the phone does not even have to be made yet.

Apple counts the phone as sold when it is in the customers hands. And, they make an assumption the the consumer won't buy another phone for 2 years, so they count only 1/8 of the profit they make toward each quarter.

[kv968]

Meaning that other companies, who count a phone sold when they sell it to a distributor, or even have a contract to sell it to distributor they can count phone as sold. In some cases the phone does not even have to be made yet.

Apple counts the phone as sold when it is in the customers hands. And, they make an assumption the the consumer won't buy another phone for 2 years, so they count only 1/8 of the profit they make toward each quarter.

They USED to recognize revenue from iPhones on a straight-line basis over a 2-year period since they had to treat it using subscription accounting due to the software.

As of Q1 2010 the accounting rules changed and they now recognize almost all of the revenue and costs when delivered.

[Nika]

They USED to recognize revenue from iPhones on a straight-line basis over a 2-year period since they had to treat it using subscription accounting due to the software.

As of Q1 2010 the accounting rules changed and they now recognize almost all of the revenue and costs when delivered.

Hmm, I wasn't aware. Going to have to do some research.

Up $580 on my option right now. Tempting to take the money (30% profit in 2 days) but I think it could go higher. Risky though.

Somebody once said to me that options are crack cocaine of the financial world. Could be true.