Is Apple a safe bet?
Apple recently released their earnings and blew them out of the water. Are they a safe long term bet? I planned on buying their stock once it hit below 100 and sure enough it has in this terrible market. I bought some before their earnings report. nnBottom line, is it a safe bet?
Answers
102 points
kellysue answered one year ago …
I too bought Apple before they released earnings however it continues to go down! Should I buy more?
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474 points
spider348 answered one year ago …
Depends on your appetite for risk and your proposed holding time. Ask yourself this, would you have considered averaging down when AAPL was at $150 or even $120 off it's highs of $200 a share ? Those were significant levels in the stocks price. My point is we are in the most extreme of uncertain times, probably more so than most of us will ever see. The holiday shopping season is approaching, the elections, OPEC and Oil , foreclosures still at records highs, unemployment is rising. Until I see momentum turn north....cash is a position too.
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JTrain answered one year ago …
Yea, I like it. It has a low P/E. You have to be looking 18 months out though. Cramer on mad money said he doesn't like it short term. But they have no cash problems from what I hear and are liquid. I am in for the long term.
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508 points
John answered one year ago …
JTrain why are you still listening to anything Jim Crammer says? Do you not see this guy is a moron. He told people to sell only after the market was down 40%. If you listen to Jim Crammer you would have no money left. Apple is the new Microsoft but better. It doesn't matter how much the economy falters i keep seeing people with new Ipods, Iphones and Macs. I bet two weeks after the election all of a sudden the media's perception of the economy will just turn around, if Obama is elected of course. And apple will be off to the races.
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jester112358 answered one year ago …
In times when low debt is critical Apple is one of the best with 25B$, yes, 25 billion in cash on their balance sheet and no debt! You might note that is 25% of their total market cap of around 100B$. So when you buy a share of apple about 25% of that is pure cash. And cash is king in a credit crisis. Further, they are taking market share from PCs, especially laptops, smartphones (they just passed RIMM in total sales) and have a near monopoly on the IPOD market. And their retail stores are cash machines (perhaps explaining why they hold 25b$ in cash).
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