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Welcome to the Ression. You can thank Banks who with their ballon interest rates on houses, builders who are building houses that start out at $350,000 in the midwest, and rising oil prices.

Jan 22, 08 - 06:47 pm Comment from: R

The broader issue is that Apple is not shooting itself in the foot causing all this. There are other forces afoot. Apple is strong, getting stronger, and is certainly not sitting still.

The stock market is often an illogical place. Witness the article above. In the turbulence of market sentiment following the downdraft of the sub-prime meltdown, even the Fed lowering short-term interest rates 3/4 of a point, and longer-term mortgage rates dropping as well did little to soothe the nerves of Wall Street today. Apple got caught in the downdraft.

But in chaos, there is opportunity.

I am a strong believer in the thoughts of Warren Buffet and Peter Lynch. In a market panic, they see bargains. Instead of worrying about guidance, they look at earnings and earnings history. Lynch always admonished that stocks track their earnings. History bears this out. Please understand that earnings and stock prices don't move in lock-step - there is often quite a lag. A stock's price can get way ahead of its true earnings, or vice-versa. It's this latter category where bargains can be had.

If Apple's stock price gets pushed down below what earnings suggest is its true value, that's a buying opportunity. As Warren Buffet always said, "I will tell you how to become rich. Close the doors. Be fearful when others are greedy. Be greedy when
others are fearful."

This might be that time. Wait a few days to see how the market settles. But you might find a bargain in the produce section. Look for the shiny Apples...

Hmmm, only a buying oppertunity.

I think that there are forces at work that dislike Apple or at best, use the like of Apple to drive the market in a direction that is favorable to them.

Sell High, buy low. Even if you have to create the very forces that make the market move. :-( The FCC needs to catch these people, but, hey, they are only the government, right?? LOL

en

Jan 22, 08 - 07:11 pm Comment from: CheekyGit

@ en

"I think that there are forces at work that dislike Apple or at best, use the like of Apple to drive the market in a direction that is favorable to them.

Sell High, buy low. Even if you have to create the very forces that make the market move. :-( The FCC needs to catch these people, but, hey, they are only the government, right?? LOL "

If you don't like the rules of the game, don't play.

Jan 22, 08 - 07:11 pm Comment from: ChrissyOne

One thing's for sure - absolutely none of this is the fault of the leader of the free world*.

-c

(* - and much of the locked-up world)

"A stock's price can get way ahead of its true earnings, or vice-versa. "

That's what had happened with Apple, it needed 30% growth every year for a decade to support it's price. an 8% forecast of growth doesn't match that expectation, hence the price goes down.

"The FCC needs to catch these people"

FCC, I think you mean SEC? Anyway, there's no nefarious moves afoot there, just an overvalued stock beginning it's fall back to it's true value.

This is only the beginning. Wait until a tax and spend socialist is in the white house.

Can't get any worse then having a tax cut and spend Neo Con. Either way the American public is screwed.

Anything to be rid of a borrow and spend fascist.

Jan 22, 08 - 07:24 pm Comment from: Macdoc

Not if you don't vote for that tax and spend socialist!!!

So don't!!

1. Apple always drops after an earnings announcement.

2. The Second Quarter is always much slower than the first quarter (fiscal year) because Christmas is over, there's no educational buying yet, and it's just the slowest quarter of the season.

3. Apple's drop had nothing to do with its earnings report; it was a knee-jerk reaction to the rest of the market dropping. Just watch, in a week to 10 days, we'll quietly have two or three 200+ point days which won't be hyped on CNN.

"This is only the beginning. Wait until a tax and spend socialist is in the white house."

Yeah, baby. Bring it on!

Meanwhile, the Republican candidates continue to offer to bribe the electorate with tax cuts in the hundreds of $$- while shoveling billions into the pockets of their corporate pimps.

Jan 22, 08 - 07:35 pm Comment from: R

Tax and spend. Cut and spend. Do I hear a vote for the bend and snap?

Jan 22, 08 - 07:42 pm Comment from: Ampar

I vote for bend and snap. And blonde sorority queens.

Let someone else pay the bills and clean up my mess.

I'm taken care of for life.

The rest of you miserables are on your own.

thanks Jeb & dad

bend and snap.

works every time.

Jan 22, 08 - 07:47 pm Comment from: doc

@bizlaw

Wanna bet? Tell ya what, I will contract to sell you 1000 shares at us $195.00 on Monday, Feb. 4 2008.

So what's the vibe in the States at the moment. I have nearly 20000 aussie dollars I don't know what to do with. Should I support Apple and invest in them? I'd like too. Do it now while it's cheap?
I mean unless America totally closes down and shuts up shop, I see this just as a slump. Things will eventually get better. This must have happened before, gone up up up, nows it down again. It the nature of the market.

Jan 22, 08 - 07:48 pm Comment from: It's About Time

Grand buying opportunity if the stock moves to $120 (more than likely its correction price) within 2 months.

You guys really have to stop generalizing. First off, I don't want a tax-and-spend socialist either, which is why I don't like President increase-medicare-by-30%,-double-the-Federal-Department-of-Education,-double-military-expenditures,-and-greatly-increase-the-debt-which-will-eventually-have-to-be-paid-off-with-you-guessed-it-higher-taxes-or-genuine-lower-spending Bush and most others who currently call themselves "Conservative".

I personally support Ron Paul (go ahead, laugh), which by the way points out another false generalization here: that Republicans all fund special interests. But after him, I would, as much as I hate to say it, rather have any of the Democrats than any of the other "conservative" Republicans.

Sorry for the rant.

Jan 22, 08 - 08:07 pm Comment from: alansky

Those Wall Street f**kheads! Nothing is good enough for them! Nothing!

Jan 22, 08 - 08:13 pm Comment from: Connor MacBook

Last chance to buy under $175 indeed

Jan 22, 08 - 08:15 pm Comment from: Ferf Muckmeyer

@Aussie,

I would still consider investing in Apple considering it has "adjusted". Guidance for the next quarter is not an indicator of bad things at Apple, just bad things here in the states. Some analysts acknowledge that we have been in a recession of sorts here for the past few months already, so this news of bleaker earnings is not just Apple. If you think Apple has it bad, wait until the effect it has on the entire tech sector. It will be a bloodbath.

But with all cyclical things like the financial markets, things will turn around. Here in the states the Federal Reserve Bank lowered the "discount rate", the rate the government charges banks for loans. This has an effect on all corners of the economy and generally should help the markets in general.

Wait until Apple goes down to $135 - $140, then consider buying.

fm

Jan 22, 08 - 08:16 pm Comment from: Connor MacBook

Aussie, go for it! I'm a fellow Aussie who almost bought $A3000 of Apple stock in 2003, when it was $US7 (split-adjusted). Even with the current slump it would still be worth nearly 20 times that now.

People, it makes no difference who's in the White House now. We're all fscked.

Within seven years, America will need that US-Mexico border fence to keep people IN. God bless our rulers (on all sides), who ruined the country for the sake of power, politics, and short-term personal gain.

As for Apple, are they traded on any Asian exchanges? Time to see the real future.

We've tripled the amount of money -- I believe it's from $50 million up to $195 million available.
--George W. Bush
03/23/2002

Is it really any wonder? He is the bankrupt king.

Jan 22, 08 - 08:53 pm Comment from: R

Going negative is easy and in peoples' nature. That's why criticism is cheap and enlightenment hard to come by. Things are never as bad as they seem-- because "bad"-- unless one dies-- is really a matter of perception.

Keep talking, Gloomers. In the meantime, the ones who see opportunity will continue to reap rewards. At least you can huddle together and stay warm in your collective self-righteousness.

I wish houses were only $350,000, Try $700,000 an UP! Gas prices average $3.25 a gallon for regular unleaded. Were talking California here folks. If houses were $350,000 around here there would be a housing boom.

Back to Apple and the Stupidity of the stock anal-lists not analysts. Apple has beaten everyone in the computer industry yet they penalize Apple for it EVERY TIME! STUPIDITY AT ITS BEST. Open up your eyes you stupid people, Microsoft is not the leader anymore, Apple is. You asked for growing market share, Apple has done that, IN SPADES! You wanted Apple to have consistent profits, Apple has done that, IN SPADES! Hello? The stock market is a big farce, fake, with a bunch of idiots on the floor who know nothing from what I can tell.

"I am putting a sell on Apple, the company that created the iPhone," Laura Goldman, investment advisor, LSG Capital, May 21, 2007. AAPL closed at $111.98 that day.

MDN seems to be forgetting to add this quote recently.

You're an absolute idiot if you think the President has any effect on the stock market. The dot com (bomb) bust of 2000 happened on Bill Clinton's watch, and now we're seeing the air come out of the bubble again. It doesn't make one bit of difference whether it's a Democrat or a Republican in the White House. These market fluctuations go in cycles regardless of which political party is in charge, and that will never change.

AAPL is still $25 more now than it was when she put her sell on it last May, so Laura Goldman is obviously still a clueless dipshit.

John ur an idiot, homes were 350k, there was a boom and now we all have homes we can not afford.

And by the way, homes that were priced in the 850k area, are down to 650k in some areas, and ones that were priced at 650k are going down to 500k. Im talking Los Angeles.

The housing boom is over because people ran out of money to borrow. Does that sound strange? They ran out of credit with which to borrow more money on. We are tapped out folks. And when you got a computer that costs $1000 or a phone that runs $400, in a down turn economy that spells trouble.
Items like that were bought on credit.

Im not saying apple is in any way in any trouble, but it does validate there weaker sales forecasts. Kudo's to Apple for being realistic. Now if analysts dont see the value in the company and choose to sell off the asset, oh well, but i remember just 5-7years ago apple was at $15 a share, I dont know how many times its split since then.

What i think the real growth for apple lies in the enterprise sectors. by getting into the field you end up selling more laptops, more desktops and more phones. And i think if they wake up and fully support exchange through something similar to blackberry, they will sell a boat load more phones.

Jan 22, 08 - 09:32 pm Comment from: ChrissyOne

For a bunch of conservative guys, I think a few too many of you have seen Legally Blonde.

Jan 22, 08 - 09:35 pm Comment from: ChrissyOne

"You're an absolute idiot if you think the President has any effect on the stock market."

I'll remember that whenever I hear about how good the Republicans are for the economy.

Jan 22, 08 - 09:41 pm Comment from: Ampar

Yeah, but Reese was so hot in that movie.

"AAPL is still $25 more now than it was when she put her sell on it last May, so Laura Goldman is obviously still a clueless dipshit."

Does that mean that if AAPL drops another $25 you’ll apologise to Laura Goldman. With all the abuse she’s coped on this site I think she deserves it.

Socialist? Socialist? I don't see anyone even remotely resembling a socialist on the US political scene. It's just the new buzzword for the scaremongers.

Jan 22, 08 - 09:51 pm Comment from: doc

@bizlaw

Come on, easy money! $5000.00 just for putting your $ where your mouth is! How can you turn that down?

Between the men and the boys are the size of their toys.

Steve's toys have brought us all down. Bummer.

Maybe there's a lesson here for us: focus on what really matters over the long term and don't get so hyper over all the huckstering launching the latest gadget that will absolutely hit its peak on the day his Steveness lifts it up to the fawning masses on the Moscone stage.

Serious computers = serious investment potential. That's it and nothing can make it come out different. Proof: collapse of AAPL since the ball last dropped in Times Square. Amazing, but true.

Jan 22, 08 - 09:55 pm Comment from: iWill

I bought in today on faith, not fear. I believe that in the long term, today will be but a blip on the ever emerging legend that is Apple. If past is prologue, we will continue to spiral upwards.

Apple is going to at least $75. The economy is about to get worse and they only offer one system for under $1000. A system (the Mac mini), which has essentially been ignored by the company. I’ll tell you what; they ain’t going to sell a bunch MacBook Niche Airs at $1700. It might also be a good time to come out with a sub-$1000 dollar notebook. Shit I can go into any Best Buy and buy a laptop with better specs than the MacBook. Ok, so it runs OS X. Whoopie!

Jan 22, 08 - 10:13 pm Comment from: iWill

P.S., For perspective, I bought in on faith in 2000 for $9/share. - I'm just sayin'.

"MDN seems to be forgetting to add this quote recently."

"With all the abuse she’s coped on this site I think she deserves it."

No, she had no idea that the stock was going to go up almost 100%. That being the case she no doubt had no idea it would come back down to 135 or whatever.

She missed the projections by a LOT, almost a year ago. Just because the stock is coming back down a bit doesn't let her off the hook for being short sighted. IF she cant predict a stock 6 months out then she has no business being in her business.

Regardless of what's happening NOW doesn't excuse her for what she said back then.

Don't diss out on a cheap Windows box if all you do is surf and email.

Just be willing to take on some extra chore keeping it going.

Of course you can pry my MacBook Pro with glorious MATTE screen from my cold dead hands.

Jan 22, 08 - 10:21 pm Comment from: R

Strong company. Strong products.

Not done growing. Still growing faster than others. A better shot than others when it comes to bets.

with $18 Billion in the bank - wouldn't this be a good time for apple to make acquisitions?

Jan 22, 08 - 10:38 pm Comment from: ChrissyOne

@ iWill

So did I, but this week still hurt.

Jan 22, 08 - 10:38 pm Comment from: Scot Murphy

@Ampar--

Reese Witherspoon would be hot in a clean-room moonsuit.

Jan 22, 08 - 10:49 pm Comment from: iWill

@ ChrissyOne

I feel your pain... honestly, misery does love company.

My mantra:
This too shall pass... This too shall pass...

It's just my gut though.

Now, if only I could turn off that chattering monkey-mind, I-told-you-so critic!

peace (-_-)

Jan 22, 08 - 10:55 pm Comment from: Ampar

To Scot: Amen, brother. Amen.