This year I bought AAPL in March July and early October, selling on October 14th and 17th. This reduced my holding to zero until one day later when I bought back 1/4 of my target allocation.
The graph show buy sell dates and percentage of target investment. I bought AAPL in 1/4 increments four times this year. I sold 3/4 of my target allocation due to a large run-up in the stock that compelled me to act in Mid October. Especially after we had seen similar run-ups and fall offs three times earlier. My average purchase price for 2011 was $357.77, selling on average of $419.05 with an average return of 17.13%
All in all I returned 117% of my investment in Apple in 2011. Additionally, I am optimistic about AAPL in 2012 and may ad to my holdings.
Although the Grand Centeral Terminal retail store will have no significant impact on 2012 earnings directly, the store does ad to the brand value across all Apple customers and watchers. Its a significant statement taking over an historic landmark and repurposing it for the current times. Once again, Apple is very creative and innovative. Perhaps the last five years of projects Steve had in mind before he left the planet will keep AAPL alive and well in 2012.
In it’s December 4th statement, The Street justified it’s ‘A’ rating on AAPL:
We rate APPLE INC (AAPL) a BUY. This is based on the convergence of positive investment measures, whichshould help this stock outperform the majority of stocks that we rate. The company’s strengths can be seenin multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, expanding profit margins and solid stock priceperformance. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results
Looking forward, I see much more upside potential in AAPL.
AAPL is inexpensive with a PEG of .7545 vs the rest of the industry PEG of 1.12.
High Operating Profit Margin: 31.22%
Highly efficient Return on Assets, Revenues Per Employee, and Return on Equity of 27.06%, $1,792,202, and 41.67% respectively
Cash Flow in 2011 is very strong.
Apple Inc. has brand recognition in nearly all segments of American and world life. I see new products coming from AAPL, including something to compete with Microsoft’s Xbox. Apple TV may be a dud, but maybe the iBox will be the next favorite in television watching. For the record, I have no actual knowledge of the iBox, this is purely speculation on my part. It does seem to have a logical progression from the iPad in my mind.
Here is a funny spoof on the Apple iBox: