Do you think it's a good time to invest in Apple (APPL)? recently BOA upgraded from neutral to buy, and the prices are still much lower than it's October highs, thoughts? - Seedly
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Anonymous

Asked on 13 Mar 2019

Do you think it's a good time to invest in Apple (APPL)? recently BOA upgraded from neutral to buy, and the prices are still much lower than it's October highs, thoughts?

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    pat

    pat

    Level 7. Grand Master

    Answered on 20 Jan 2020

    It is a good company but I will not buy in now. The company is cash rich and do not utilize their cash efficently. Until they formulated some plans to utilize their cash, I doubt that there will be major breakthrough/products/new revenues

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    Billy Ko

    Billy Ko

    Level 8. Wizard

    Answered on 20 Jan 2020

    Ultimately, it all boils down to if you feel that Apple still can go the extra mile to impress / innovate on its products. Ever since Apple started giving out dividends, I personally felt it kindda shifted from a growth company to more of a matured / shareholder-focused company. Dividends are paid when companies are not certain they can grow the money at a faster pace should these dividends be reinvested. Therefore companies issue dividends

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    Truthfully I dont really like Apple, yes it has a moat but it is rapidly shrinking and most of its profits are due to smartphone profits.

    With a declining market share in smart phone, it means Apple's smartphone sales look set to fall and in turn its profits. With a company whose majority of its profits comes from smartphone, a fall in this segment will invariable hurt its overall EPS. Yes, its services segment is growing rapidly but this is a small segment and its abolsute mahnitude increase will not be able to offset fall in smartphone demand​​​

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    Bjorn Ng

    Bjorn Ng

    Level 9. God of Wisdom

    Answered on 20 Jan 2020

    Well, usually I don't follow analysts recommendation - it's better to do your own research and create that conviction yourself before purchasing. I did not research into APPL myself, so I cannot recommend fully, but I would just like to point this out - If you had just buy in on 13 Mar 2019, assuming you have already done your research and feel it's a good valuation, you would be up a whooping 75%. That's more than 2x of Facebook's share price growth.

    Focus on the business, not the market sentiments/noises!

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