Says earnings are inflated in some way that normalized earnings are much much lower and that if and when this comes to light the stock will possible crater to 200 per share. Same analyst that worked at the Wall Street banks that aided Enron in the fraud. Some say it was like Christopher Columbus discovering the new world when it turned out that people were already here and Vikings and such came before. Crazy.
This is what happens to a company when the founding CEO dies. Ken lay died and then this Skilling fellow steps in with Andrew Fastcar and commit accounting fraud. Now we have Steve Jobs dying and Cook steps in and decides to Tim Cook the books. It's why always say you should hire from within.
Now, correct me if i'm wrong, but i read through the article. i didn't see you say $200 a share, though, that was in the headline. do you think 200 is the right number? how do you get there? i don't think 200 is necessarily the right number. what the article says is, is apple a value trap? and i think the idea is, it might have farther to fall. just because it was once $700 a share doesn't give any reason that it should be $700 a share again. and it seems like, you know, you lay out a lot of the case that the bears will throw out, that it's momentum its slowing, that its share is decreasing, but a lot of the argument has to do with stock psychology and how so many analysts were just willing to give it a pass. do you think that is what had kept apple going higher and now is responsible for the fall? i think there's some of that, yeah. i think psychology is a really powerful thing. it's human nature to think that there's a reason it should be at $700 a share again. but there's this argument, if you think about value investor, they look at normalized earning, and there's this argument that apple's earnings of the past couple of years, which make its stock look so cheap weren't real. they were this extraordinary thing. and that apple's true level of earnings is something much lower, making it more expensive stock that it might appear, by the p.e. measure. bethany, it's karen. let me ask you. how do you think about -- i know $200 isn't the valu assigned, but given what you're saying about potential slowdown and loss of market share and ing -- earning less what the street thinks, what is the rice price for apple at this point? i have heard people toss levels around $200, the apple skeptics out there. the huge amount of cash apple has, tax adjusted, $111 a share right now, so, you'd say it's hard to believe it's going to go to that level, until they show signs of starting to burn through cash. if they do. there's an aument that technology companies once innovation dries up
U can gargle this bs in any way u like... At the end if the day there is 137 billion of earnings sitting in cash at apples banks and investments... Adding aprox 1 billion to the pile per week.....
Yup i guess if u normalize that it is actually 65billion... Lol... Numb nuts !
First, Ms. McClain worked for Goldman Sachs and was the top option strategy analyst. Also she was the first one who spot on Enron fraud and collapse. Second, maybe it is her speculation, but this theory explains some odd news and silence of AAPL management in the past 3 months. Some evidences are
1. AAPL cut parts order by 50%.
2. AAPL have a lot of iPhone returns. (to prepare public for an explanation of coming earnings revision).
3. AAPL dump iPhones on Wal Mart unless they really need to move the inventory at whatever price.
Looks like AAPL booked future earnings in previous 2 quarters because they anticipate iPhone5 will skyrocket like previous generations. Instead, the sale is stale. Tim Cook is trying to come to an explanation and fix the overstatements in the second half of 2012, thus the silence. Her theory explains everything and it is the only thing that fits. Some people can smell fraud with limited clue. I think she is one of them.