I actually agree with your assessment of AAPL...once the dam breaks, doubtful it will take out the all time high again...now somehow GOOG managed to do this but it has a ridiculous bull mkt now carrying it but AAPL wont have that luxury as time is running out on the bull...would be surprised if the bull lasted 9 more months.
At some point, MSFT, INTC, CSCO were all high flyers and while they continued to make bank even after the growth phase was over, you dont get that sick dumb explosive stock price growth anymore.
The momo players are into 3D printing and TSLA now...
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Damn TSLA I have been wanting to get in for over a week now but the price wont allow it!...we need a 20% correction so I can get in.
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Originally Posted by mmahany
I agree with your first statement, although I certainly don't believe that it's a $400 company. A great deal of negativity would have to occur for it to be "fairly valued" at that price.
It's P/E ratio ranks it around the top 10% for Tech companies. They are still posting some of the highest quarterly earnings of all time (for any company). They're still very heavy on cash and still have a significant market share.
The bad:
-They're running out of steam. They haven't come out with anything innovative in a long time. The iPad mini was long overdue and it's also a product with more narrow profit margins.
-Android based phones are continuing to improve. In my opinion, the iPhone 4 was the last phone that I considered to truly be the best out there. The 4s and 5 include dated technology and the 5 certainly came with its fair share of flaws.
-It's not that cool to own an iphone anymore. Apple's stock price got as high as $700 because it was cool to own Apple products and it was equally cool to own Apple stock. It was the number one owned equity in mutual fund portfolios and mutual fund companies were using it in growth and value based funds (in some cases dividend funds as well). After the stock fell, it fell sharply. Many fund managers started dumping the stock which only made the price fall faster.
I think the price has overcorrected and it's fairly valued at around $500-525, but the technology sector changes daily so my opinion on those figures may change in the blink of an eye.
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