“Screen for growth stocks, and Apple (AAPL) has it all. In fact, except for Steve Jobs’ diminishing role in the company, it’s hard to find any serious, negative concerns. And yet, the stock is priced like a moderate grower with typical uncertainties,” John Tobey writes for Seeking Alpha.
“Everything (excluding Jobs’ health and position) argues for investors to pay more for AAPL,” Tobey writes. “Instead, they are paying less. I believe there are four possible explanations and three are likely the cause – especially #4.”
1 – There is some unknown, negative information
2 – Investors are avoiding risk, meaning U.S. stocks that don’t pay dividends and depend on future growth for their valuation
3 – To some (many?) Apple and Jobs have no or negative auras
4 – The unmentioned(?) risk of Job’s role change and possible absence
Tobey writes, “Apple stock is cheap – too cheap. Add in the qualitative factors and the valuation becomes uniquely outstanding – and that’s a concern.”
Read more in the full article here.
[Thanks to MacDailyNews Reader “David E.” for the heads up.]