This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Apple Is a Bad Investment

Stock quotes in this article: AAPL, IVV, ICF, JNK, IAU, QQQ

Investor interest: Those 57 Wall Street analysts have issued 22 strong buys, 28 buys, 5 holds, 1 under perform and 1 sell recommendation to their clients. They predict that investors could see a total annual return as high as 18.50% over the next five years. An amazing number of individual investors have expressed their opinion on Motley Fool, where 28,944 readers have given a 92% vote of confidence that the stock will beat the market.

Short sellers have a contrary view and short interest has grown from 10 million shares at the beginning of the year to more than 21 million shares recently. Institutional investors have lowered their holdings.

Conclusion: At the present place, we are in the investor time continuum where AAPL is no longer a core growth stock that can be analyzed using fundamental analysis. While analysts argue if the company is a software, hardware or retail company, investors are selling their shares and technical traders who trade the S&P 500 Index ETF (IVV), Realty Majors Cohen & Steers ETF (ICF), SPDR High Yield ETF (JNK) and the Gold Trust ETF (IAU) all based on price movement patterns have added Apple to their trading portfolios, as if it were the Nasdaq 100 ETF (QQQ). At this point in time, I'm looking at the price patterns of AAPL to decide when to buy/sell/short and forgetting to read the earnings reports and SEC filings.

One day this stock may again be able to be evaluated by fundamental analysis, but that day might not come till value investors believe the P/E is low enough. My star in the east will be when Warren Buffett begins to accumulate shares of the stock. Till then, I'll monitor the moving averages and turtle channels and let the trend be my friend:

At the time of publication the author used AAPL, IVV, ICF, JNK, IAU and QQQ in his personal and trading accounts.

This article was written by an independent contributor, separate from TheStreet's regular news coverage.

2 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,847.71 -195.19 -1.15%
S&P 500 1,958.03 -14.26 -0.72%
NASDAQ 4,447.3190 -46.0710 -1.03%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs