Analyst: Three reasons not to buy Apple stock

“Not everyone loves Apple,” Christina Medici Scolaro reports for CNBC. “Take Fort Pitt Capital’s Kim Caughey Forrest. The portfolio manager and equity analyst says it’s a fantastic phone company, but her accolades stop there.”

“Forrest gave three reasons for her lukewarm analysis of Apple. First, Apple’s record-high stock prices reflect a willingness to believe that the tech giant can reinvent an entire product category every few years,” Scolaro reports. “Second, Forrest said Apple will have a tough time shifting consumer tastes back to wrist-pieces when the Apple Watch launches in April. After all, it was Apple that helped shift consumers away from watches in the first place.”

MacDailyNews Take: There’s some twisted logic right there.

Scolaro reports, “Lastly, Forrest questions the growth prospects of the iPhone… Forrest is neutral on the stock and says she has to question the fact that people are buying the stock based on the notion that market share of iPhones is going to continue to grow… Forrest wants to see Apple create a clear path to lower pricing for its iPhone models.”

Read more in the full article here.

MacDailyNews Take: Kim who? From Fort Pitt where?

Anyone who suggests that Apple needs to “create a clear path to lower pricing for its iPhone models” simply doesn’t understand Apple at all.

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

27 Comments

    1. clueless or desperate for cash?

      I watched the video. this person convincingly says either she has no idea of what she’s talking about —OR— she knows what she’s saying is akin to Balmer’s dubious take on the iPhone and then later the iPad.

      I’m gonna say it’s the later. she looks extremely uncomfortable with the prospect of looking like a complete reprobate shill two years from now.

  1. I don’t understand Apple, but even I would not declare what forrest has just declared!
    Hell!! If I haven’t started an IT company let alone any other business large or small, why would i be talking of business as though I was the world’s foremost expert in the creation of said enterprises???

  2. Another “analyst” who knows the industry, but knows next to nothing about the industry leader.

    The first “reason” is not even a real reason. Just saying something does not make it true. Considering about $30 of each AAPL share is pure CASH, Apple’s ongoing business is being valued at less than $100 per share. That’s not investors over-valuing Apple. That’s obvious UNDER appreciation of Apple’s TRUE value, present and future.

    > Apple will have a tough time shifting consumer tastes back to wrist-pieces

    iPhone and Apple Watch are not mutually exclusive choices for the customer. They are mutually reinforcing choices. There is no “shift” in “tastes” happening here. Apple wants customers to own an iPhone AND an Apple Watch; you can’t even use an Apple Watch without being an iPhone customer.

    > the notion that market share of iPhones is going to continue to grow

    Market share does not need to grow for iPhone sales to continue to grow, because the entire worldwide market for smartphones is growing rapidly.

  3. Classic CNBC. Every analyst known to man is bullish on the best company in the Milky Way, so find some dunderhead living in her mom’s basement who is bearish, and if it bears, it airs on CNBC! And voila! Worst ratings ever. Rinse and repeat. How do the idiots who do programing at CNBC keep their jobs?!?!

  4. Reasons not to buy Apple stock:

    1. Not enough disposable income for speculation.

    2. Wanted by police, FBI, CIA, or other three letter acronym.

    3. You’re a doomsday prepper, the world as we know it is ending soon and stocks will be worthless.

    4. Your favorite hats are lined with tinfoil. 😉😀

    1. Boeing is a great aircraft company, but…
      ExxonMobil is a great oil company, but…
      Intel is a great processor company, but…
      GM is a great automobile company, but…

      But all of them have some weaknesses because anything can go wrong at some point. Natural disasters, economy downturn, labor strikes, new technology, etc.

      Apple is clearly wealthier than all those companies combined. I just don’t get CNBC always looking for narrow-minded Apple critics. All those reasons not to buy Apple could apply to almost any other company on the planet. Getting these anti-Apple people are only hurting potential Apple investors from making some decent returns if they take these analysts’ advice to heart.

      Apple’s fundamentals are rock solid with an extremely loyal customer base, high-traffic retail stores and a sticky ecosystem. Apple has a lot going for it. However, some Chinese-American incident could likely do great damage to Apple and any number of tech companies who do business with China. There are never any 100% guarantees that something can’t go wrong.

      As far as AppleWatch is concerned, I think the high number of developers will make AppleWatch a success if Apple can get a device on people’s wrists. Apple’s global retail stores will go a long way in helping to make that happen.

  5. Kim Caughey Forrest proves that anybody can claim to be an analyst. The harder part of being an analyst is knowing what the fuck you’re talking about. Forrest’s reasoning is poorly reasoned 1st year Finance major thinking. Who knows, maybe that’s what she is.

  6. Wow, she really doesn’t know what she’s talking about at all. Hey, I can buy an argument about various reasons why Apple’s stock might not continue to grow, but here’s a person who admits to having no Apple products herself, and while that’s not grounds in of itself to be clueless, she clearly goes on to demonstrate that she doesn’t know Apple at all…

    She calls it an “iWatch”. She “predicts” that Apple will likely make some sort of information/entertainment system for cars that would work with your Apple phone.

    Jesus, the lower third actually says “I-Watch”.

    She’s completely ignoring the stock fundamentals as well as having a complete lack of understanding of the technology… hell, she doesn’t even address the technology. She’s not saying here are the reasons why an “I-Watch” will fail, but instead just ethereally providing an opinion on it.

    She ends with the red flag of having found one vendor who is “focusing” on Android for their new app because more of their customers (at this restaurant) and Android phones. How has that worked out for everyone else?

  7. just when you educate one group of died in the wool ‘analysts’ the truth about Apple, a whole new virgin bunch of ill informed University droids come along needing the obvious banged into their heads because they can’t think different or learn from the ill judged mistakes by their forebears.

  8. I just adore these analysts. By ignoring their advice for the last 16 years I’ve turned a few thousand dollars into a half a million dollars in value. Not to mention selling a few shares from time to time to buy the new release.

  9. if you child wants to be a neurologist and cure Alzheimers or something ….. instead of following your advice to become a ‘Financial Analyst’ SLAP her.

    Tell her: “There’s nothing Better and Safer than being a Financial Analyst. You can be a totally stupid, make no sense, have a track record of complete misses (i.e lose clients money) , shit you can screw up like you were smoking crack or drunk on the job, and instead of being FIRED be treated like a STAR on shows like CNBC! You can even make ridiculous statements like ‘record high stock price’ implying that it is OVERPRICED while in actuality aapl ‘s PE is lower than the S&P AVERAGE… and STILL keep get quoted like it’s an accurate insight of an Expert!”

    /s

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