I've been talking to my mom on the phone today. She is 69 years old and never ever touched a computer in her life. She even got problems with a simple cell (not: smart) phone.
So the conversation goes on for a while and I'm telling her that I'm having a hard time finding good (non-mining) stocks to put some of her retirement money in and then she says:
"You know what, why don't you buy me some Apple stocks? I've talked to one of my best friends (another lady about her age) and we both think it's a great company. They're all over the news, they have to be great."
As a contrarian, I instantly took this as a major sell signal for APPL. My mom has NEVER traded stocks and has never dealt with any AAPL product and any computer or smart phone for that matter.
Remember the famous rule from the 1929 crash:
http://www.barrypopik.com/index.php/...o_sell_joseph/When even shoeshine boys are giving you stock tips, it’s time to sell (Joseph P. Kennedy?)
Don't get me wrong:
I don't want to say my mom should be compared to a shoeshine boy, but as far as stocks and technology are concerned her knowledge is at the level of such a person.
Getting a little more serious:
Recently, there have been reports about questionable accounting methods used by AAPL to inflate earnings by accounting for sales of products which aren't actually sold.
Additionally, the company is considering to use it's huge pile of cash to broaden their product portfolio which usually ends in a desaster.
EVERYONE is on one side of the trade. Literally all big fundmanagers own APPL. The trade is totally overcrowded.
APPL faces problems with their manufacturing slaves in China.
etc. there are a lot of reasons to be cautious.
iAm considering to buy some puts...