“Apple (AAPL) is perhaps the biggest anomaly on Wall Street,” Geordy Wang writes for Seeking Alpha.
“The company is the perfect turnaround story. It fought tooth and nail to claw its way back from the brink of market irrelevance in 1997 to become, to date, the most valuable company in the worId,” Wang writes. “It has crushed every competitor that has stood in its way, it’s perfectly positioned to ride the explosive boom in smart phones and tablets, its balance sheet is an absolute juggernaut, and it’s led by the best talent in the business.”
Wan writes, “This is the rare company where no one has a bad thing to say about it. Out of the 42 analyst firms providing coverage on Apple, exactly none rate it a sell. So why does the stock trade at a P/E of only 15?”
Here are some of my best guesses as to why Apple isn’t getting any love from the Street.
• Steve Jobs Is Gone
• Apple Isn’t Very Shareholder Friendly
• A Clouded Crystal Ball
• The Law of Large Numbers
Wang writes, “None of these factors in isolation could sandbag a goliath like Apple, but put them all together and you might have a convincing explanation for why Apple isn’t getting any love from Wall Street.”
Read more in the full article here.
[Thanks to MacDailyNews Readers “David E.” and “Ellis D.” for the heads up.]