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  • This Could Be Why Apple Shares Are Down [View article]
    I disagree with you 100%, but at the same time I hope your 3 reasons are what brought down AAPL shares. Why? Because they are far reaching and have no legs.
    Dec 26, 2012. 08:14 PM | Likes Like |Link to Comment
  • This Could Be Why Apple Shares Are Down [View article]
    Thanks for bringing in some real world selling and buying.

    I'm curious to know what made you sell at $600.
    Dec 26, 2012. 08:09 PM | Likes Like |Link to Comment
  • This Could Be Why Apple Shares Are Down [View article]
    I always thought Blackberry was garbage. I was forced to have one at work and rarely used it. I always deferred to my iPhone.

    Try this - think of Apple as a luxury product company instead of an electronic commodity company. That might make a little bit more sense to you and explain why Apple has done so well (profit wise) compared to others.
    Dec 26, 2012. 08:04 PM | 1 Like Like |Link to Comment
  • This Could Be Why Apple Shares Are Down [View article]
    "Actually, the smart play is to not sell and incur any gains if you own Apple..."

    I couldn't agree more.
    Dec 26, 2012. 07:51 PM | 1 Like Like |Link to Comment
  • This Could Be Why Apple Shares Are Down [View article]
    Yes, but how did those sellers know the stock was going to go down? Hint: They didn't - chances are they bought back in closer to their sale price instead.
    Dec 26, 2012. 07:47 PM | 1 Like Like |Link to Comment
  • This Could Be Why Apple Shares Are Down [View article]
    Yes, but they must wait 30 days before they can jump back in. (Wash Rule)

    Figure if they were willing to buy at $600-700, they would be even happier to buy at a lower $520 share price.
    Dec 26, 2012. 07:42 PM | Likes Like |Link to Comment
  • This Could Be Why Apple Shares Are Down [View article]
    If they sold for a profit, they can buy it back right away. If they sold for a loss, they will have to wait 30 days due to the Wash Rule.
    Dec 26, 2012. 07:35 PM | 3 Likes Like |Link to Comment
  • This Could Be Why Apple Shares Are Down [View article]
    Thanks! I did mention the state taxes, but neglected to include any within the example in order to keep it simple.

    Taking the time to add in those state taxes will show you just how much more cash would go to Uncle Sam and out of AAPL.

    I also live in New Jersey and share the same tax burden as you. Makes me want to forever buy and hold...
    Dec 26, 2012. 07:30 PM | 1 Like Like |Link to Comment
  • This Could Be Why Apple Shares Are Down [View article]
    @bgold1955 - Not sure how you came to the conclusion that my analysis is based on short term gains... If anything, the 20% is closer to long term gains.
    Dec 26, 2012. 07:21 PM | Likes Like |Link to Comment
  • This Could Be Why Apple Shares Are Down [View article]
    I know it looks staged but it wasn't. I was shocked when I saw how the numbers fell off that $590, too.

    "...people who have sold Apple at a gain who want to buy all of the shares they sold back could sell other company shares in order to do so. Or they may have available excess cash in order to do so, or purchase some or all of the same number of Apple they sold on margin."

    Now you are assuming that people have more money elsewhere that they can pull in order to buy back their original quantity of shares. If that were the case and everyone did that, which I doubt everyone would, the stock price would remain the same. Well, the stock price hasn't - people are not buying back the identical quantity of shares that they sold.

    Unless people know exactly how the future unfolds and can sell high and buy low. And we both know that no one is capable of that. In the end, you have an unintended force of lowered demand which we have all seen in a lowered stock price.
    Dec 26, 2012. 04:11 PM | Likes Like |Link to Comment
  • This Could Be Why Apple Shares Are Down [View article]
    I'd venture to guess that most tax related sales started right before Apple released earnings for Q4 2012 - lock in some gains before the unknowable.

    I'd also venture to guess that the average sale price from then to now has been around $600/share, higher than my $520 and lower than your lightly touched $700 mark that you speak of.
    Dec 26, 2012. 03:56 PM | Likes Like |Link to Comment
  • This Could Be Why Apple Shares Are Down [View article]
    The smart investor is not going to reinvest money owed to Uncle Sam for 2 reasons:

    #1 - Most smart investors settle their taxes early in the year and do not wait until April 15th to write Uncle Sam a check.

    #2 - Most smart investors will not invest Uncles Sam's money and force themselves into a losing situation. They will not want to force a sale on Apple if it happens to be below their purchased price when it comes time to write Uncle Sam a check.

    I do not agree with your rationalization. In short, most people settle up with Uncle Sam's money quickly and do so safely with cash on hand, not with shares they'll have to sell.
    Dec 26, 2012. 03:44 PM | Likes Like |Link to Comment
  • This Could Be Why Apple Shares Are Down [View article]
    Agreed. All reasons aside, the recent drop in Apple's market cap has created an excellent buy.
    Dec 26, 2012. 03:35 PM | 1 Like Like |Link to Comment
  • This Could Be Why Apple Shares Are Down [View article]
    If the market wasn't absurd, it wouldn't produce opportunities like this:

    Take the $121 Billion in cash from Apple's balance sheet, subtract it from the current market cap of $484 Billion and you are left with $363 Billion or a FY 2012 PE of 8.7 after cash.

    That's what I call a ridiculously good bargain. All that matters is that you're smart enough to notice that this is a solid buying window.
    Dec 26, 2012. 03:32 PM | 3 Likes Like |Link to Comment
  • This Could Be Why Apple Shares Are Down [View article]
    "All consumer electronics products" & Apple products are two entirely different things.

    Anyway, I'm not going to sit here and argue with you about Apple products and their want-to-be Apple competitors. That's not the point of my article.
    Dec 26, 2012. 03:03 PM | Likes Like |Link to Comment
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