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

I Pounced When Apple Fell Below $425

So far, the beginning of this year has been a continuation of the party that started last fall when the Fed began its policy of indefinite quantitative easing. Negative news like the weak Q4 GDP and continued political and economic instability overseas has not been enough to derail the rally, which has moved the market beyond its 2007 highs.

I don't know what the exact trigger will be, but if the real economy does not keep pace with this market rally, I’m convinced that stocks will eventually falter. The longer the current trend continues, the more likely we are to run into a no-win situation, where bad news is bad because the Fed is out of bullets, but good news is also bad because it signals less easing.

Some specifics regarding recent portfolio moves:

I recently sold my remaining stake in Best Buy ( BBY) once it became clear that the buyout I had been hoping for was not in the cards. Fortunately, by the time I sold, the company had regained the bulk of its recent losses anyway due to a better-than-expected holiday season.

Only a couple months after vowing to be more discerning about taking on new individual stock positions, I have already decided that below $425-per-share, Apple ( AAPL) was too attractive to pass up. I had my eye on the stock ever since it dropped below $500, and at this point, I believe the company has a unique combination of low PE, incredible balance sheet, and potential for further growth.

If the economy does improve, I think Apple will be due for a huge rebound. And even if the rest of the market tumbles, it's hard for me to see Apple tumbling much further given their earnings and mountain of cash.

Get to know Brendan:

Brendan Ruchert-Dixon

Brendan Ruchert-Dixon

I work full-time as a software engineer. Investing has been an interest of mine since college. I'm a patient investor

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 $92.72 -0.56%
FB $119.49 1.43%
GOOG $711.12 1.38%
TSLA $214.93 1.61%
YHOO $37.23 0.79%


Chart of I:DJI
DOW 17,740.63 +79.92 0.45%
S&P 500 2,057.14 +6.51 0.32%
NASDAQ 4,736.1550 +19.0610 0.40%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs