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Moby Waller
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Moby Waller is a former CBOE Market Maker floor trader and off the floor London-based European Index Options Trader. He now works with BigTrends.com and is a Research Analyst and Portfolio Manager for BigTrends.com's ETF TRADR (http://www.bigtrends.com/getstarted/etfgrowth/), which provides... More
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  • The Cult of Apple (AAPL) - A Contrarian View 1 comment
    Jan 11, 2011 1:58 PM | about stocks: AAPL, QQQ

    We all know how well Apple's (NASDAQ:AAPL) stock price has done over recent years, and how they have had the hippest, coolest, cutting-edge products — basically since the iPod revolutionized the music industry.

    Longer-term market watchers will remember that the company almost went out of business a couple of times, but Steve Jobs has seemed to pull a magic product rabbit out of the hat which saved them and/or propelled growth (Macintosh, iPod, iTunes, iPhone, iPad).

    There is such an overwhelming love for the company and its products (I'm not one of the true believers), that people are even getting the Apple logo tattooed on themselves:

    aapl10 aapl9 aapl8 aapl7 aapl6 aapl5 aapl4 aapl3 aapl2 aapl1

    First, I can't fathom getting a product logo tattooed on yourself permanently, but certainly some others disagree.  But for example, suppose you had a Commodore 64 tattoo done in 1984, would that be relevant now?

    As a contrarian by nature, the overwhelming love I see for AAPL stock (almost every portfolio manager needs to own it) and its products (consumers camping out for the latest version of a phone) is troubling to me.

    I would be cautious on the stock going forward, remember how many of the "hippest" things from the past are now out-of-style relics today.



    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
    Stocks: AAPL, QQQ
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  • rubicon59
    , contributor
    Comments (1502) | Send Message
     
    What kind of "love" does the current PE of 14 indicate? Try using brain before publishing this kind of "analysis"
    12 Jan 2011, 03:00 AM Reply Like
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