USA Today article
Title: Apple Dead Money As Rest Of Market Takes Off
Author: Matt Krantz
Date: July 10, 2013
As if it weren't already enough for technologically clueless Wall Street to relentlessly trash and bash Apple 24/7 for 9 consecutive months, the technologically clueless Media is also still doing the same thing.
It has become the new National Pastime for the U.S. Media to relentlessly trash and bash Apple.
But in contrast to what technologically clueless Wall Street & the Media are claiming:
iOS is the world's most advanced mobile operating system that is the foundation for the iPhone, iPad, iPod touch, Apple TV and the world's best mobile ecosystem.
iPhone has received nine straight J.D. Power and Associates awards, ranking iPhone "Highest in Customer Satisfaction with Consumer Smartphones" (that's every study since the first iPhone was introduced).
Apple is the #2 Global Brand (just behind #1 Coca-Cola), according to the world's leading global brand consultancy, Interbrand.
iPad has received two straight J.D. Power and Associates awards, ranking iPad "Highest in Customer Satisfaction with Tablets."
The American Customer Satisfaction Index ranks Apple (Macs) first in the category of personal computers.
Even so, technologically clueless Wall Street is still foolishly undervaluing Apple with a waaaaay-below-market (ex-cash) P/E of 6.4 (vs. the S&P 500 market P/E of 18.4).
Are you a tech wiz but market moron? Its supply and demand that dictates margins and profits. Its supply and demand that dictates share price. Apples share price is basic economics projected forward. Look at all the people(including officers) that started bailing at 600+ spring/summer 2012. Did they have a crystal ball? Nope, everybody else started making nice phones and everybody already bought a phone. T-A-D-A ! Now you get Q3 & Q4 and revisions aren't going to take this stock above 450 this year. Management appears to have little incentive to reflate the share price until 2016 options.
Well Apple is down for the year while the market is making new highs. It does make me wonder about the wisdom of the folks that recommended this stock 6 months ago. When Apple first sold off how many "generational buy" outbursts did I have to endure from the media?
Best way for the Street to make money on Apple is to call it a loser, issue downgrades, point out the reduced production of the current iPhone (no one's upgrading, you idiots, because they know the 5S is coming), and then bemoan Apple's growth to get the IDIOTS that bought the shares THEY sold up near $700 to part with them under $450 so they can take away their shares before they start doing the next round of upgrades.
This is, what, the 3rd or 4th time its happened since 2004.
Stock prices fall when earnings growth falls, they rise again once belief that earnings will grow again at a similar pace as before. There is no conspiracy, although wall street big wigs shorted at $700, and are probably accumulating now, while retail investors are doing the opposite.
You speak the truth. And you would be 100% correct if all stocks were measured by the same p/e standard - but they are not, by a wide margin. Apple's p/e has been depressed way below a reasonable level, just as Amazon's and Netfix' have been elevated way above. This is the broadest definition of WS manipulation. And they will use any weapons at their disposal, not the least of which is the media.
Saw an interesting documentary on Netflix about how retailers were suckered into stocks in the US in the early 1900's. Stock market was the sole domain of big boys before then. The entire idea from the get-go was a pump-and-dump scheme.
Leap Wireless lost $100 million on iPony. Today's report shows Verizon will be in the red for $19 Billion. Those stats were in the past. Investors and traders are interested in the future and Verizon's predicament is an ominous sign of what will become of AAPL.
Alright melt, give it a rest with your technologically clueless stuff. I too am long Apple - check my MB history - but WS is a lot smarter than you think. They don't love or hate a company, the love to make money. Whether on the long side, short side, in the options pit or whether through other contrived, structured vehicles and misdirection.
There was a definite agenda in taking aapl down, but it was not out of technological ignorance, but because there was more money to be made on the other side. Did you really think WS was going to pay out billion$ in ITM call options - I think not? Do you think Apple was a threat to many competitors and industries - you bet.
Apple had become the biggest company in the history of companies, was the most widely held (everyone was going to be rich), and was widely hyped by the media to reach 1 trillion market cap. The media is not appearing from nowhere here - they are following the herd and quite possibly in the employ of Apple enemies.
Your 'technologically clueless' reasoning is just too simplistic and shows a lack of understanding of investing. Separate Apple from aapl. Perception often trumps reality, which is what's going on here. Still long Apple but have put new money to work in other areas in the meantime.
And in the long term, the sizzle is nice, but the bacon drives the fundamentals. Jobs had both, and while the emotionally driven Apple lows indicate a shallow lack-of-sizzle perception, Apple will zoom once the market "sees" what was written above and new products are closer to reality. It's a matter of when, not if.