This Day On The Street
Continue to site
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

Apple Is a Bad Investment

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

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $95.03 -2.90%
FB $116.73 7.20%
GOOG $691.02 -2.10%
TSLA $247.54 -1.60%
YHOO $36.59 -0.97%


Chart of I:DJI
DOW 17,830.76 -210.79 -1.17%
S&P 500 2,075.81 -19.34 -0.92%
NASDAQ 4,805.2910 -57.85 -1.19%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs