This Day On The Street
Continue to site right-arrow
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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Buy, Sell or Hold Apple: Psychology, Sentiment and Your Cost Basis Matter

Stocks in this article: AAPL AMZN

NEW YORK ( TheStreet) -- I went on CNBC's "Fast Money" Tuesday. And let's face it, I got beat up a little bit. I knew I was walking into a shark tank.

Former NFL linebacker @petenajarian can probably relate. I'm sure he got his bell rung early on in battle. It might not have been @K_Finerman who knocked him flat, but, hey, it's all good. She's one of the best.

That said, with all due respect to Karen, cost basis absolutely matters as Apple (AAPL) longs consider what to do, if anything, headed into today's earnings report. It seems to me the "Fast Money" crew wanted a clear-cut buy or sell; I don't think it's that simple, particularly because I don't have a crystal ball and I don't treat investing (or trading) like gambling.

Watch the video. Then I will provide context and my response.

First -- and I'm not ashamed to admit this, I was a little nervous. I think I am all right at this television thing after all of seven appearances; however, It takes time to get comfortable in that environment. Comfort only comes with time and practice. When you do TV everyday the words tend to flow; when you don't do it everyday, sometimes they just don't.

That was evident, toward the end of the piece, when I flubbed my response to a question about Apple's valuation. In bringing up (AMZN), here's what I meant to say:

Apple deserves more breathing room. We give Jeff Bezos and AMZN serious benefit of the doubt. That's because investors see less uncertainty in Amazon as it sets itself up for the long term. Understood. I support the thesis. However, I do not buy the notion that Amazon is a 3,000-to-11 favorite -- using each stock's price-to-earnings ratio -- over Apple.

it didn't come out that way, however those who read me regularly know I have been making AAPL/AMZN comparisons for several days, if not weeks.

They also know I don't think AAPL is a good stock to own right now. That's a broad statement. It's meant to be. I can't, in good conscience, provide a one-size-fits-all buy, sell or hold recommendation on this thing.

It's a tough stock to own because everything but reality has been driving the share price since pretty much April. Do you really want to be in a name that gyrates wildly on the basis of headline noise and hysteria? If you're a nimble trader, no doubt, it's made for you. However, most long-term investors should not a.) open a fresh position ahead of earnings or b.) add to an existing position.

1 of 3

Select the service that is right for you!

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 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • 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