“When Steve Jobs passed away last month, I wrote that Apple stock was due for a price haircut,” Dana Blankenhorn writes for Seeking Alpha.
“I was widely criticized for that, especially as the price of the stock rose more than 10% in the week after, peaking at $426. Fans of the late Apple co-founder and his products pounded the table with my prediction and pounded the table for the stock,” Blankenhorn writes. “But now, after a less-than-thrilling earnings report, Apple shares have fallen back to Earth. At the current PE multiple of 13.71, they’re priced nearly at par with Matthews International (MATW), which is in the business of producing marketing materials and (interesting) caskets and tombstones.”
MacDailyNews Take: Less-than-thrilling earnings = Record quarterly revenue of $28.27 billion and record quarterly net profit of $6.62 billion, or $7.05 per diluted share. In their last “less-than-thrilling” quarter, Apple sold 17.07 million iPhones in the quarter, representing 21 percent unit growth over the year-ago quarter, while the world waited for the next-gen iPhone no less. Apple also sold 11.12 million iPads during the quarter, a 166 percent unit increase over the year-ago quarter. And Apple sold a record 4.89 million Macs during the quarter, a 26 percent unit increase over the year-ago quarter.
Blankenhorn continues, “At these levels AAPL is a screaming buy. Time for the post-Jobs haircut to end until there is something real to justify it.”
Read more in the full article here.
[Thanks to MacDailyNews Reader “Opportun” for the heads up.]
Thanks MDN.
While it is true that AAPL has declined somewhat in the last few days, and hasn’t increased in the last 2 weeks, as it should have, just look at the NASDAQ and other comparable stocks, they also are down. I conclude there isn’t much of a Steve Jobs aftermath.
It’s the economy, stupid.
How do you make $$ on AAPL? You sell it. When it seems stable you sell. When it’s unstable to the positive you buy. It’s the only way to make $$ on them. This is to be expected. Especially in today’s climate.
Just look at the AAPL curve and compare it with NASDAQ, MSFT, DELL, HPQ, over a time span of a year, and you will see that AAPL basically does what the others do, except for an occasional jump upward. Gains of 20-40%/yr wrt the others are not uncommon.
Best of all, apart from the fluctuations (of ±15%, and with a time constant of, typically, a few months), AAPL has gone straight up.
That hasn’t even changed much in these troubled times.
That’s why any EGG curve or TOST analysis for AAPL needs to adjust for PBAJ, at least for any 5 year period.
Blankenhorn is a hit-whore who owns Google shares and is constantly bashing Apple. Don’t waste your time.
That’s pretty much what the comment section under his article reads like.
“Matthews International (MATW), which is in the business of producing marketing materials and (interesting) caskets and tombstones.”
That is one bizarre analogy, and rather callous too.
Anybody can predict that Apple stock will shortly get a haircut. You then simply need to wait and inevitably there will be an event which gets used as a trigger for an artificial drop in the price and at that point you can stand up and proclaim that you are the wise one with the gift of foresight.
Sold a chunk of my Apple @ $402/share that was bought a long time ago for far, far less.
Not to wish anyone bad fortune, but I hope Apple takes a beating and then I’ll begin buying again.
AAPL has already taken an unnecessary beating… they had a great quarter, beating their own guidance, but the so-called pundits decided to predict even more. The less than expected iphone numbers were easily explained during the transition to iphone 4s, and any “lost” sales will be made up for in the subsequent quarter. Sold out in Hongkong in hours… buyers scalping iphones for huge profits over actual retail price. I don’t think AAPL has any problem, so the stock is a bargain, but only in a sane world. But the casino that is Wall St. is dominated by gamblers with no fundamental knowledge, and a huge herd mentality – no spines. But the cream always rises despite lunacy.
Brilliantly said, felipe.
Apple’s stock is to low, should be at $600 a share or higher. This non- sense about a less than steller quarter is FUD. Past quarter was another record breaker, how that equates to something negative is stupid. Any other company with sales numbers like Apple would have there stock sky rocketing!
Clearly ‘stock value’ is an emotional state. Pathetic Wall Street. 😛
Anytime there is a perceived negative, even unwarranted, plus an uncertainty over Apple during the quiet time between company announcements, the hedge traders are off on another wild bear raid. Happens at least once a year. Starting with a big short move (last Wednesday), followed by strategic high-speed selling at moments of low volume. Observers with links all over the investment internet come out of the woodwork to piss on it. Then when hedgies think they’ve milked it for all it’s worth, they cover and go long. The observers suddenly tell the world it’s a winner. Since Apple will come back and go higher, it’s a sure thing.
Its just cuz we’re lazy! Obama said so…
Clearly the number of fracking idiot stock analysts and manipulators has not diminished as a result of our ongoing economic depression, the one they helped create with their stupid cheerleading of parasitic corporations.
If you REALLY want to watch Apple stock ‘come down to Earth’, then hang on and watch. The fact is that Apple stock value has been SUBTERRANEAN all year. When it rises to Earth surface level it’s going to prove what we already know: Apple has THRIVED during our ongoing economic depression and mass quantities of ranting AnalTards can’t hold it down. HaHa! 😆
The market is what the market is. Don’t fight the market. First rule in investing : never fall in love with a stock. I may go hug my iPhone 4S,iPad 2, Mac Mini,Apple TV,iPod Touch or my old G5 but I’ll never be dumb enough to hug any stock. Not even AAPL. Investing is cold. It’s not for fanboys. AAPL is a fantastic company but it’s selling off. Live with it. Could be hedge funds or mutual funds taking profit? It doesn’t matter, it’s going down. I’d wait to see if it breaks through the 200 moving average at 362 before I buy any more. I’m a little underwater on some calls but still ahead on most. I’m not happy either but ya just have to approach it like adults. Most posts on this site are by fanboys which is to be expected but they should refrain from commenting on the stock market as they simply don’t have a clue. To constantly bash anyone who has a negative outlook on AAPL is childish. So are all the analysts and reporters who pump up AAPL always right? Hell no! Don’t be such dumbshits. Just because people report facts that you don’t like doesn’t make them wrong. AAPL will hopefully get some wind in their sails soon. But fanboys need to go back in the basement and let the adults do the investing. I doubt any of them even know the difference between investing and cheering!
I’m really glad you’re here to set us straight. None of us know what we’re talking about. We need your superior wisdom in order to get through the day. My only question is what’s a multi-billionaire of your stature doing hanging out and commenting here?
BTW, most of my considerable pile of AAPL was bought at $7.50 a share. I bought it precisely because I was a fan of Apple and its products.