“Now, I’m not sure about you but I usually don’t take my tech stock investing tips from bond gurus. I’ve been in the tech industry for over 15 years now and follow the sector closely, so maybe I feel better equipped to gauge Apple’s prospects than a bond guru,” Vigod writes. “Gundlach argues that because Apple shares have gone up rapidly they must retrace back to their starting point of $425. Interesting logic, right? I must add that Gundlach is talking his own book; he has disclosed he is short Apple shares [bold emphasis added – MDN Ed.]. I’d expect nothing less from a bond guru opining about tech stocks.”
Vigod writes, “Apple sits on the largest cash warchest of any company in the world. If Gundlach’s price target is achieved, that would mean Apple would be trading for $300, if you back out the net cash on the balance sheet. With over $50 in earnings per share for 2013, that is a P/E of 6.”
Read more in the full article here.
[Thanks to MacDailyNews Reader “David E.” for the heads up.]