Why I would sell shares in Apple now

One was in for a treat if they invested in Apple a few months ago. Shares have skyrocketed and if you bought a substanstial amount of them earlier, you could have made enough for a nice holiday soon!

But the truth, at least in my opinion, is that the only way is down for shares in the late Steve Jobs’s empire. Apple has just been ordered to pay $563 million as a result of breaching a patent. This bad news will only drive client sentiment down and, in order to get ahead, you should short back your shares as soon as possible.

Moreover, the fact that the outstanding valuation of Apple outstrips their profit/earnings ratio means that the shares will go down in value eventually, meaning your profit on the overall trade could be substantially reduced.

Of course, I can’t foresee nonlinear, unexpected events occurring, no one can, but, within all feasible scenarios that we can forward, I would say sell the shares back if you want to keep your holiday.

9 Comments Add yours

  1. Gaurav Srivastava says:

    I absolutely agree on your insight!

    Like

  2. Z says:

    i disagree completely. 563 million is a drop in the bucket for apple. with additional products being released the only way is up

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    1. The lawsuit is a damper on client sentiment, to be honest, which always persuades people to short. What I think is that sentiment is as important as anything to the share price. Thanks a lot for your comment!

      Like

  3. T says:

    Mr. Ichan would argue this point with you, but I think you have it exactly right. Several hedge funds just did a complete exit on APPL:. Soro’s fund is one of them. Uhhh nuf said. Good eye young Jedi.

    Like

    1. Thank you very much! 🙂

      Like

      1. TJ1972 says:

        I do not believe all this is from a 14 year old.

        Liked by 1 person

      2. Send me an email at shrey140700@gmail.com and I’ll send you a heavily edited version of my passport. I hope that’ll be enough to prove that I’m 14 to you. 🙂

        Liked by 1 person

  4. Nathan says:

    The key issue with respect to how the resolution (positive or negative) or a lawsuit might affect a company’s stock is the degree to which the actual outcome differs from the market’s expectation. If the market expected AAPL to have to pay $1bn… then a $563 million award would actually be POSITIVE for sentiment.

    One of the most important aspects of stock picking is getting a feel for what information is already widely known, and what the key points of uncertainty are. Good luck.

    Like

  5. TJ19 says:

    shrey14072000 Lol, that’s not necessary. I’m impressed at your intelligence at such a young age. Let it be known, I meant no malice by my previous comment. 😉

    Like

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