Apple…Overwatched and Underowned!! $AAPL

  • Posted by
  • on April 21st, 2011

Apple does not go up everyday because it is OVERwatched. Everyone wants to be famous by calling a top and so sellling pressure is persistent.

Apple will not go down in a serious way because it is UNDERowned. Too many people want to own it on dips.

I own Apple for my fund and my client accounts and I am astonished that great traders won’t leave it alone. I can totally understand not owning it and even disliking the Company and Steve Jobs for their tactics. But to mess around on the short side is just wrong.

Your kids will have many reasons to dislike you but not owning this run for them is inexcusable. They will forgive the ‘short sale’ of your home, missing the Priceline monster run and owning a ‘Droid’, but not your lack of intelligence for padding their college account with Apple stock.

Apple makes great products, has silly margins and continues to expand distribution with no end in sight. The perfect storm for stock price appreciation over time.

Here is the‘money quote’ from a fund manager at Wedgewood today:

“We still believe Wall Street consensus has not grasped the enormity of what Apple is delivering on a global basis,” Rolfe tells me. “We’ve never seen anything like this in our careers.”

Rolfe contrasts Apple’s low valuation multiple with the high-flying stocks of the DotCom era.

“This isn’t Cisco [Systems (CSCO)] circa 2000, with a P/E of 100,” says Rolfe. “This is John D Rockefeller, Standard Oil kind of stuff. They are taking a disproportionate share of revenue and profit.”

Luckily for me, the stock will continue to be overwatched and underowned for the forseeable future.

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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