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Russ Kaplan
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Mr. Kaplan received his Bachelor and Masters of Arts Degrees from the University of Iowa and his MBA from the University of Nebraska at Lincoln. He also holds a Masters Degree in Sociology from the University of Iowa. Russ Kaplan is an investment adviser representative for Russ Kaplan... More
  • Updates On Apple And Hewlett Packard Stocks 0 comments
    Nov 23, 2012 5:19 PM | about stocks: AAPL, HPQ

    Apple Inc.

    One stock you probably thought I wouldn't recommend is Apple (NASDAQ:AAPL).

    Now, Apple is a good case for the role psychology plays in investments. When Apple broke the $700 level analysts were saying it was the greatest thing since sliced bread. After a 25% correction they now say it is mature company past its prime and should be avoided. Honestly, has the company really changed in such a short time, or another speculative algorithm from the Quantitative Analysts (QUANTS)?

    By all my measures of value Apple is a good buy. For example, its price/earnings ratio is 11%, which is less than the total market, and about one half of Apple's normal price/earnings ratio. Yes, there is constant change in the computer industry, but Apple, with its management skills and huge trove of cash should be able to adapt to this in their usual seamless manner.

    Apple pays a dividend of about 2% so if you are looking solely for income this is not a stock for you.

    Hewlett-Packard Update

    One stock I wish I hadn't recommended is Hewlett-Packard (NYSE:HPQ). When I was researching the stock two years ago I thought it was a good opportunity. Unfortunately, with considerable changes in top management, this company, unlike Apple, has not been able to keep up with the current constant change in computer technology.

    To top it off, Hewlett-Packard made a recent purchase of the British firm called Autonomy. It's now looking like they overpaid by $9 billion for the company that has current charges of fraud against them hanging over their head.

    This report is based on research from sources considered, but not guaranteed reliable. Mr. Kaplan may have positions in some, or all, of the recommendations

    Disclosure: I am long AAPL.

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