Quote:
Originally Posted by Asherian 
It's really simple. You don't buy a stock based on what it did in the past or even what it did today. You buy a stock for its future performance.
It's quite obvious that the market doesn't have much faith in Apple without Jobs, and the underwhelming launch of the iPhone 4S didn't help. And yes, I'm well aware of the spin of the fastest selling iPhone ever -- a complete miracle considering it went on sale in far more countries the first day than the iPhone 4 did.
The percentage growth rate AAPL has been on has been stunning, to be sure. But the low P/E indicates that the market, as a whole, thinks the ride is over and that kind of growth is not going to continue. Especially sans Jobs.
Statistically, AAPL is undervalued for its current earnings. No doubt. But I know a great many people who now won't touch AAPL stock.

It's really simple. You don't buy a stock based on what it did in the past or even what it did today. You buy a stock for its future performance.
It's quite obvious that the market doesn't have much faith in Apple without Jobs, and the underwhelming launch of the iPhone 4S didn't help. And yes, I'm well aware of the spin of the fastest selling iPhone ever -- a complete miracle considering it went on sale in far more countries the first day than the iPhone 4 did.
The percentage growth rate AAPL has been on has been stunning, to be sure. But the low P/E indicates that the market, as a whole, thinks the ride is over and that kind of growth is not going to continue. Especially sans Jobs.
Statistically, AAPL is undervalued for its current earnings. No doubt. But I know a great many people who now won't touch AAPL stock.
On a 2 to 5 year timescale, that might be understandable. At least you stay more alert.
But as Zaky said
Wall Street is currently modeling for massive contraction in the growth rate. Thats an unwise decision given that Apple just guided fiscal Q1 2012 this quarter for 80% earnings growth. Notice, Wall Street is modeling for 25% growth while Apple has guided for 80% growth. Who do you believe?
Of course Wall Street has been modelling for massive contraction in the growth rate next year, every year since pretty much forever. They havent been right yet. That has been going on since long before Jobs health was an issue.
And I suspect you would have to go back further than that to find a quarter where Apple didnt meet their own guidance. Oppenheimer has been doing the guidance for years. He hasn't changed.
Have Apple ever guided higher that 80%. This isn't about 2 years forward, or 5, This is about January. I can here that P/E compression creaking.










