Why I Don’t Own Apple Stock
by | Posted 2.4.2013 | Post Comment (No Comments)

Last Thursday January 24, 2012 shares of Apple stock (AAPL) dropped 12.36% after announcing quarterly earnings that failed to meet analyst expectations. I’m going to admit that I was very interested as I watched all of this unfold because I suspected the market was greatly over reacting. After the large drop, Apple stock was trading down close to 10 times earnings (P/E near 10) and had a dividend yield close to 2.3%. When I looked over the fundamentals, I think the company looks strong and I couldn’t understand why the market is not willing to pay as much for $1 in earnings from Apple compared to other companies like Microsoft, McDonald’s or Wal-Mart (each of whose P/E’s are in the mid teens).

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