When 21-year old Tom Pszeniczny decided to make his foray into investing, he figured Apple was a pretty safe bet.
In the days leading up to the iPhone 5 launch event last September, the Drexel University student bought six shares of the iPad and iPhone maker for $665 a piece.
While Pszeniczny wasn't looking to make a quick buck, the following week seemed promising. On the day the iPhone 5 went on sale, investors pushed Apple (AAPL) shares to a record high of $705.07, generating a 6% return for Pszeniczny.
But it was all downhill from there.
Apple's stock began to slide, and by January, shares were down more than 30% from their all-time high. Thinking the stock would pop after Apple reported its quarterly earnings, Pszeniczny decided to pick up 3 more shares at $503 a pop.
"I thought it had bottomed out," said the Cinnaminson, N.J., native. Even though Apple managed to report a record quarterly profit in late January, the company's lower margins worry analysts and investors, who pushed the stock down 14% in the two-day period following the earnings announcement.
With shares now trading around $390, Pszeniczny is down almost $2,000 on his initial investment.
In hindsight, Pszeniczny said he probably bought shares when they were "over-inflated." But he's not cashing out just yet. In fact, Pszeniczny said if shares decline to $350, he would consider purchasing more.
"It's disappointing to see how Wall Street has treated Apple, because I don't think its stock price is a true reflection of its strength," he said, noting that Apple is sitting on a hoard of cash, has no debt and is trading at a valuation of less than 10 times earnings estimates. "I still believe Apple is a solid company -- one of the best in the world."
As long as Apple continues to innovate, release new products, and keep its margins healthy, Pszeniczny believes the company's share price can recover.
"For now, I'm just going to have to wait and see what happens," he said.
Pszeniczny won't have long to wait. Apple reports its quarterly results after the market close Tuesday. On average, analysts expect earnings-per-share around $10, about 19% below last year's quarterly profit. Sales are expected to edge up about 9%.
Investors have been adding money to the U.S. stock market since the beginning of the year, but the pace of inflows has slowed considerably.
U.S. stock mutual funds lured in just $509 million during the week ended Feb. 13, according to data from the Investment Company Institute. While that marks the sixth straight week of inflows, it's the smallest of the year. During the first four weeks of 2013, investors MOREHibah Yousuf - Feb 21, 2013 2:06 PM ET
Individual investors continued to put money into the stock market last week, but the pace has slowed.
U.S. stock mutual funds, a popular investment vehicle for individuals, brought in just over $3.5 billion in the final week of January, according to the Investment Company Institute. That's about $30 million more than the week prior, when flows started to moderate.
Overall, investors have poured $10.3 billion into U.S. stock mutual funds in January.
That's MOREBen Rooney - Feb 7, 2013 10:53 AM ET
The opinions expressed in this commentary are solely those of Paul R. La Monica. Other than Time Warner, the parent of CNNMoney, Abbott Laboratories and AbbVie, La Monica does not own positions in any individual stocks.
Investors are giddy. The Dow and S&P 500 are near all-time highs. Don't ask about the Nasdaq though. (It's kind of like mentioning "the war" to the Germans on Fawlty Towers. Still a sore spot MOREPaul R. La Monica - Jan 31, 2013 11:49 AM ET
Individual investors continue dip back into U.S. stocks as the Dow and S&P 500 get closer to new record highs, but the pace has slowed.
U.S. stock mutual funds raked in $3.5 billion during the week ended Jan. 23, according to data from the Investment Company Institute, making it the third consecutive week that investors added money to U.S. stocks. Altogether, investors have plowed more than $16 billion into the market during MOREHibah Yousuf - Jan 31, 2013 11:25 AM ET
Bond king Bill Gross says it's time for individual investors to get used to a new (and slower) dance.
In his monthly investment outlook letter, the founder of Pimco and manager of the world's largest bond fund, Pimco Total Return Fund (PTTRX), wrote that the age of credit expansion that led to double-digit portfolio returns is over, and the age of inflation has begun.
And that means investment returns from both stocks and MOREHibah Yousuf - Sep 5, 2012 2:07 PM ET
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