“The Apple trade is officially over,” Thomas H. Kee Jr. writes for MarketWatch. “Before I start, to all the diehard Apple fans out there, yes, AAPL is still a good company, their products are great, I personally love my Macbook Pro, and although they are in a very fickle industry, it is impressive that they have been able to do what they have done. But good companies see stock prices fall, too.”
“There is also a coincidence between the AAPL trade and the shift in the psychology of the market, and ultimately that may, as simple as it sounds, be the reason the AAPL trade is over,” Kee Jr. writes. “We do not have free-flowing liquidity anymore, in fact we are now officially in a liquidity crisis, and the obvious flow of money into Apple is no longer there as it was before. In years past, any time money came into the market, it naturally came to Apple… Well, those days are over, and that constant bid in AAPL can no longer be depended upon.”
“The psychology of the market and the obvious shifts in liquidity have caused the Apple trade to change,” Kee Jr. writes. “Investors should not expect money to be there to pick up the pieces anymore.”
Read more in the full article here.
MacDailyNews Take: Sounds familiar for some reason. Oh, iCal?
Nothing in Apple’s arsenal is compelling enough to command multiples as high as recent growth rates… [If] you own AAPL and you are expecting the company to grow like it has in the past, you are sorely mistaken. Apple is not what it was… Apple is a sell. — Thomas H. Kee Jr., January 12, 2012
On January 12, 2012, Apple shares closed at a split-adjusted price of $56.29.