This article uses live trading records of our Focus Growth model from our brokerage account to illustrate how our sophisticated computer programs traded AAPL from September 2011 to August 2012. Focus Growth is our large cap growth portfolio that invests in large cap stocks using our proprietary computer algorithms. AAPL is the best known stock in the world and is widely held by institutional and individual investors.
Focus Growth made initial purchase of AAPL on September 02, 2011, then scaled in and out it a few times to take advantage of potential opportunities in other large cap stocks, and finally closed the AAPL position on August 22, 2012. The complete AAPL trade lasted almost one year.
Following chart marks the buy/sell entry points and transaction prices.
Following table explains the reason for each AAPL trade that the computer programs made:
|Trade Sequence||Buy or Sell||Date||Shares||Transaction Price||Reason for the Trade|
|1||Buy||2011/09/02||5||$373.41||AAPL is cheap relative to other large cap stocks.|
|2||Sell||2011/11/14||1||$383.48||BIIB has better potential. Sell 1 share AAPL to buy BIIB.|
|3||Sell||2011/12/19||1||$383.7||CELG has better potential. Sell 1 share AAPL to buy CELG.|
|4||Sell||2011/12/27||1||$407.31||ASML has better potential. Sell 1 share AAPL to buy ASML.|
|5||Buy||2012/01/30||1||$447.91||After Q1 report, AAPL has better growth rate. Sell other stocks to buy 1 share AAPL.|
|6||Buy||2012/02/21||1||$506.62||Continue selling other stocks to buy 1 share AAPL.|
|7||Sell||2012/04/09||1||$629.11||AAPL valuation becomes expensive relatively. Sell 1 share AAPL to buy LULU.|
|8||Sell||2012/08/22||3||$660.1||After Q2 reports, other large cap stocks have better growth rates, and AAPL price has gone up too much to make its valuation attractive. Close remaining 3 shares to buy other large cap stocks with better potentials.|
For Focus Growth to invest in AAPL again in the future, one or more of the following things must happen:
- Other large cap stocks appreciate significantly faster than AAPL, so that AAPL becomes relatively cheap comparing with others.
- AAPL growth rates in future quarter reports go back to historical level and make valuation favorable again when comparing with other large cap stocks.
- AAPL price has good correction from current level so that the valuation becomes attractive even at current growth rate.
We will patiently let our computer programs monitor and keep tracks of both price and financial statements of AAPL and all other large cap stocks, then decide whether/when to pull the trigger to invest in AAPL again.
Investing in the financial markets involves risk, including the risk of principal loss. Don’t invest with money you can’t afford to lose. Information in this report is in no way intended as personalized investment advice and should not be interpreted as such. Past performance is not necessarily indicative of future results. Performance results do not take into account any tax consequences.