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Apple Inc. (AAPL): Why You Should Quit The Stock

April 5th, 2013

buy-and-holdBillionairesPortfolio.com: I just finished reading the book “Why I quit Goldman Sachs” last night written by a former Goldman Sachs employee. First off if you have not read the book don’t waste your time, its terrible, but there is one key point that the author made in the book that I wanted to talk about.

That is about insider information and deal flow. The author makes a great point about how all the traders at Goldman Sachs see all of the deal flow that is happening in the markets they cover. This means Goldman Sachs as one of the largest and most important brokers and market makers in the world has all the biggest pension funds, mutual funds and hedge funds trade through their desk. So of course this means they can see what these funds are buying and selling throughout the day. This gives them a huge information advantage over everyone else especially retail investors.

So this reiterates my point further about Apple Inc. (NASDAQ:APPL), as I have told you in posts before, all of the “smart money” has been dumping Apple stock for months, and everyone knows this who is “inside” meaning Goldman Sachs (NYSE:GS), while you have been buying they have been shorting Apple since they are seeing huge mutual funds and pension funds slowly dump their entire Apple Position right in front of their face.


If you don’t believe me just read the latest article on Fidelity Contrafund in the Wall Street Journal, it is the world’s largest Mutual Fund with over $90 Billion, yes Billion in assets, and was one of the biggest holders of Apple. Well over the last 3 months Fidelity Contrafund, because it is so big, has been slowly dumping its Apple stock, to the point where it almost owns zero Apple stock. Now if you knew that the world’s largest mutual fund was going to be dumping millions of shares of Apple stock over a three month period would you still buy Apple? Of course not, its like standing in from of a freight train!

So get smart and find out what the “smart money” is doing with their money and follow them, we tell you what the world’s biggest Billionaire Investors and Hedge Funds are doing with their money. Don’t run out in front of a speeding train by buying Apple because Fidelity and its $90 billion in assets will run you over, and that is exactly what has happened to retail investors who have tried to buy Apple this year.

Learn more about me and how we follow Billionaire Investors into stocks by visiting the Billionaires Portfolio.

-William Meade
Editor of The Billionaires Portfolio

Related ETF: Technology Select Sector SPDR (NYSEARCA:XLK)

Top 10 Holdings (63.11% of Total Assets)
Company Symbol % Assets
Apple Inc. AAPL 14.31
International Business Machines IBM 7.35
Google Inc. GOOG 7.35
Microsoft Corporation MSFT 7.26
AT&T Inc. T 7.03
Verizon Communications Inc. Com VZ 4.60
Oracle Corporation ORCL 4.46
QUALCOMM Incorporated QCOM 3.88
Cisco Systems, Inc. CSCO 3.82
Intel Corporation INTC 3.05


NASDAQ:QQQ, NYSE:XLK


 

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  1. Nervous Cat
    April 12th, 2013 at 10:03 | #1

    I don’t speculate – I save and invest for the long term with the ultimate goal of retiring comfortably. I follow Buffett and Bogle.

    This article talks more about speculation, which is not what I consider long term investing advice. Anyone who has held Apple for at least three years is still ahead and probably won’t sell anyway.

  2. tralfazy
    April 6th, 2013 at 18:42 | #2

    @michaeltheinbredchimp
    Did you know that illiterate monkeys often type in all capitol letter?
    :o ) (j/k)

  3. pmpnzez
    April 5th, 2013 at 20:42 | #3

    @michaeltheinbredchimp
    yes the masses buy buy buy

  4. David DarstheDumper
    April 5th, 2013 at 17:36 | #4

    They are banking their turnaround on a $2500 iTV. Panasonic and Samsung have long been in the SmartTV game and have great 50-60 inch HD TVs for $800. The iphone is getting its butt kicked by Samsung and Android Handsets that are half the price, have bigger screens and cooler features. Samsung and other PC makers also have tablets at half the cost of the iPad. Bottom line: Nice products from Apple, but not at premium prices. With Steve Jobs gone, the leadership is lacking. The Hedge fund community seems to agree. Look at folks dumping the stock. Google and Samsung are the future my friends. Stick a fork in this rotting Apple.

  5. michaeltheinbredchimp
    April 5th, 2013 at 16:17 | #5

    APPLE SELLS UNDER-PERFORMING OVERPRICED OUTDATED TECH TO TECH ILLITERATE MONKEYS!

  6. Jack N
    April 5th, 2013 at 15:46 | #6

    @tradebeginner

    Fidelity Contra dumped only 10% last quarter. Probably dumping more this qtr based on how the stock has performed the last two weeks. Alot of smart folks exiting and taking gains now. Tumble will probably continue. I’m a buyer at $275ish ( where it was in May-July 2011 ). The question is: is Einhorn dumping based on the lawsuit and Apple basically giving him the finger on his proposed Issuance of Preferred’s with a 4% yield. Several Large Hedge Funds exited Apple in Q1, probably more will based on the rotation into Google and other stocks with a better chance of doubling, tripling etc

  7. ziggy
    April 5th, 2013 at 14:22 | #7

    You’re not incorrect but the most important fact you are neglecting is tense. These large funds have sold most of their positions. So what is happening in front of the Gold man’s ballsack face right now filtering for the variables AAPL and large hedges is either null or buy. Meaning this is a better time to buy AAPL than when the ballcasks logged the massive sell offs.

  8. Tony
    April 5th, 2013 at 13:41 | #8

    @tradebeginner You are correct. I also read the Article that said Fidelity Contrafund sold ONLY 10% of its AAPL position. They were the largest holder, so it was It was a huge block. But they still retain 90% of thei original position. ETF is for idiots. Insider Monkey is even worse. Do your own research; you will be better off for it.

  9. G Hawkins
    April 5th, 2013 at 13:35 | #9

    Sell $AAPL now. Many hedge funds have been dumping their position: Leon Cooperman, Eric Mindich and Thomas Steyer unloaded billions of dollars of Apple shares between September 30 and December 31, and have continued to do so in the first qtr of this year. Another interesting note is that Insiders on the Board of Apple have also been exiting their stock holdings. Options exercises on $AAPL show Robert Mansfield sold more than $30 million in Apple stock on March 14th. Couple these stories with this article and the fact that $AAPL keeps getting beaten down day after day and you have to believe that Funds like Fidelity will follow suit ( they usuually lag the quicker moving Ehedge Funds. ) Apple will get a alot cheaper, best to play it safe and get out now, then buy back cheap when it’s in the $250 range again. Buying it now is like picking up a dime in front of a Bulldozer and you will regret it. Great company ? Of course, but the stock is owned by too many Hedge Funds and professional investors who are all cashing in their gains before they turn negative.

  10. ben
    April 5th, 2013 at 13:21 | #10

    @Miguelito
    Fact is they have over $150 Billion in cash. Don’t forget that dummy.

  11. vlaep
    April 5th, 2013 at 13:09 | #11

    @Miguelito How does Apple have bad fundamentals? it’s return on equity is 18%, it is trading at a P/E of about 10, which is lower than even IBM, which is trading at a P/E of about 14.5. Also, why should we believe fund managers know a thing or two?

    there is also evidence that two new iphones and the iwatch are already starting to be manufactured, according to supply chain observation in asia.

  12. Tom
    April 5th, 2013 at 13:05 | #12

    Miguelito – Apple has the strongest fundamentals in the business, look up the meaning of the word and analyze the financial statements and you will see that.

    Secondly, the big funds sold because they took their profits and protected the investments of their customers in the downward spiral. If you sold at the same time, then you did the right thing. If you still have the stock, then it’s no good selling now as you are already behind the times. The big funds will pick it back up again in the future, just wait and see.

  13. tradebeginner
    April 5th, 2013 at 12:58 | #13

    Can someone provide the link on wall street journal about Fidelity Contrafund dumping ALL appl shares? I cannot find it. All I can find is they unload 10% of their apple’s share.

  14. Miguelito
    April 5th, 2013 at 12:21 | #14

    Some look at it from the point of view that all the various funds are dumping AAPL, which is why you should get out as well. Others look at it from the point of view that AAPL has bad fundamentals, no new/exciting products for over 2 years now (and nothing substantial except rumors of iTV and iWatch in the pipeline, with even those expected to make only a minor dent) as being reasons to dump AAPL.
    The only people who are bullish about AAPL and are buying (or say they are buying) AAPL stock are the ones that throw dramatic number around ($750 by the summer!) without substantiating their ‘forecasts’ with objective analysis/facts, and the ones that buy AAPL hoping that the ‘miracle product’ days of old (when Jobs was alive) will happen again with the next product launch (which they haven’t for the last 4 product launches).

    Bottom line: if you’re a gambler, buy AAPL. If you believe facts, trends, reality and that fund managers might actually know a thing or two, sell AAPL.

  15. real smart money
    April 5th, 2013 at 11:48 | #15

    I’ll tell you what should you quit : writing bs, you embarass yourself. You also forget to mention Goldman Sachs has a buy rating and PT on AAPL : $575. Apple is hugely undervalued only because of rumours. No facts, numbers whatsoever. Talking about smart money, even Buffet likes it.
    Short aapl on 23th and I’ll eat your lunch.

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