Apple not a top stock?

“Like they say, ‘oh how the mighty have fallen.’ It seems analysts at Citi have benched a company that was once a major league player,” Lee Brodie reports for CNBC.

“Only last year it was a darling of Wall Street and a hedge fund favorite, but today Apple failed to make the cut in Citi’s latest ranking of so-called world champion stocks,” Brodie reports. “And the list was pretty long – it included a total of 50 stocks with many of Apple’s tech peers including Google, Microsoft and Qualcomm all making the cut.”

Brodie reports, “Trader Pete Najarian, co-founder of OptionMonster is on the other side. He said that Apple is a second half story. And with shares pulling back from $700 to $450, he thinks at current levels the market will accept lower margins. Pete’s brother, Jon Najarian, says much the same. ‘The stock have gone through a 30% correction. At these levels, I see it as a value. I don’t understand why Citi doesn’t.'”

Read more in the full article here.

[Thanks to MacDailyNews Reader “David E.” for the heads up.]

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35 Comments

  1. Wall Street is a strange and impenetrable place. Apple, which is still kicking serious ass is now priced by investment pros as if it’s a failing company. AAPL is no longer the most widely held stock by funds. Their replacement? AIG. That’s right, home of the fraudmeisters, and an asset base of paper. Since Apple never played the game on Wall Street, the hedge guys longed for an opportunity to bring the company down. The only thing that’s ever held them back has been the new product sales and blow-out earnings. And that’s what will take Apple back on top.

  2. Citi. That great company that lead the USA into ‘The Great Recession’ and required a BAIL OUT.

    Yeah. Citi knows what it’s talking about. That’s why I always spell their name: ‘SH*ti’

    Oh, how business has corroded into biznizz.

  3. AAPL will hit $1,000.00 soon : August and September 2012. Too much hype. But that’s the way it goes. Apple wasn’t the first company to be overvalued and overbought. Happens all the time. If you pay attention to other companies and their values you would see that. Now it’s overhyped in the other direction. That too happens all the time. Again, if you pay attention to stocks other than a AAPL you understand this. But so many here do not. Will Google hit $1000 soon? I don’t think so. But it will probably hit it within a couple of years. Will Apple hit $1000 soon? I don’t think so. But I do believe they have new products coming so it doesn’t take a fanboy to see that there is certainly room for upside from here. Might get a little cheaper yet. But I think it will have good results in the second half of the year. Just don’t put all your eggs in one basket. Don’t expect Apple to run up like it has in the past. Other than for short spurts. It’s not a $50 stock right now you know. Apple was overbought last summer and people who didn’t get out in September made a mistake. They should have realized that it had shot up too quickly and that was thin ice. But I didn’t see anyone posting about those crazy analysts last summer. Where were the posts then? That incredible run-up in August and September was justified? Of course it wasn’t. But everything was peaches and cream then wasn’t it? No stupid analysts comments. Then when people take their profit, mutual funds rebalance and tax issues are looming, suddenly the analysts are all idiots right? Jeez. Next time do better. So you don’t have to blame others for your mistake. Don’t be so damn greedy.

    1. it is maybe in your dream. it won’t hit that level. you have no idea how stock market works. now people don’t have any expectation on apple future much because they seem to be lack of innovation idea unlikely Steve era. if apple won’t create revolutionary market, whole stock price will be back like 2007. I bet it. $450 is easily dragging down below $400 anytime soon. world economy is now way different from what you explained. smartphone, tablet market are full. there is no way apple could sell more. people already know. apple is still expensive. excepting US, apple products are not really sold well worldwide. probably you have no idea because you live in US. when I go to apple shop, there are always inventory of ipad (ipad mini), iphone 5 all the time in Korea.. it means that people don’t buy. as you know, apple supply is not enough. always short.

    2. I dont see Apple as being overbought at 16x earnings. Not when Microsoft has that very multiple right now. I don’t care what anyone says. The market is supposed to be about earnings and the fact that it is no longer means its totally screwed up and no longer a safe place to invest. I am very tired of the closed mouths in Cupertino. Get out there and defend the stock. Stir the shit. They already hate your guts what have you got to lose?

      1. Apple doesn’t have anything to lose, but I actually wonder if they have anything to gain, either. If we all agree the market is made up of fraudsters, then nothing changes for Apple. Apple is truly earning profits as a company and as long as consumers continue to buy their products, the company will remain sound. It doesn’t matter what the market fraudsters say or how much they manipulate Apple’s value for themselves. It doesn’t hurt the company and it shouldn’t hurt investors as long as Apple pays decent dividends. We may not be happy with Apple’s share price being manipulated down in comparison with many other nearly profitless companies, but that can’t be helped.

        There’s no white knight coming to save Apple investors. I’m totally pissed that Google is seen as a better company than Apple, but maybe that’s because I don’t own any Google stock. I don’t think it’s fair that Apple has the P/E of an auto manufacturer or oil company because it doesn’t make any sense Apple’s P/E value should fall well out of the tech sector range. I’m just fortunate I bought the majority of my Apple stock in 2004, so I haven’t been taking any losses like recent investors.

        I just wish Apple was more aggressive as a company. Start making acquisitions, start challenging companies like Google and Netflix. Don’t allow the investors to run to easy money. Force them back to Apple. Maybe I’m just impatient. It’s possible Apple has great plans down the line and I’m merely not privy to those plans. Apple deserves to be an 800 lb. gorilla with it’s cash reserve and I wish Apple wouldn’t hold back on putting pressure on rivals. I hate to listen to the doom–mongers trashing Apple, but if Apple has a long–term plan then we’ll just have to wait and see. Still, there’s no guarantee that Apple’s share value will rise appreciably even if these hoped-for plans are carried out. In a manipulated market there are no guarantees.

    3. @GM wrote, “That incredible run-up in August and September was justified? Of course it wasn’t.”

      Of course it was, GM. At $700 the stock was–and still would be–badly undervalued.

        1. Right. The value at any point in time is meaningless unless you are transacting. There is no magic in pricing on wall street, and in many cases prices are being manipulated.

          I’m seeing more manipulation today than at any time in my decades of experience in markets.

          On another note, how about Warren Buffet getting in bed with that Brazilian financial house. No surprise at all that that group got their hands caught in the cookie jar. The have a poor reputation, surprising old Warren got in bed with them.

          1. If your comment is that a product is always worth what someone will pay for it, then you are right, but, That is only in the moment. Right now, Apple earns 10% of its share price. Where else can you get that rate of return?
            The market seems to be betting that Apple not only will not grow, but will start to make less in the future.

            1. Well, nothing in life is guaranteed. Not even future earnings of AAPL. Apple has competition now. Competition, good or bad, is still competition. There’s potential for Apple losing sales to other companies. Will Apple simply keep growing forever? Infinity? I doubt it. Hasn’t happened with any company so far. But I do think they’ll do well in the second half of the year.

  4. Wall Street is the ‘den of financial iniquity’ second to none. It is the playground of the manipulator, fraudster and scheister par excellence! He who listens to and or reacts to the mutterings and BS that eminates from from this place shall suffer the financial consequences as a matter of course.

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