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  • Wall Street Breakfast: Must-Know News [View article]
    tom 1234 - - -

    Why is Apple down? Try valuation. Expected 2008 earnings are $5.20; 5 year expected annual growth rate 24%; high volatility (Beta = 2.88). If I assign 5% annual growth starting in six years and continuing forever, fair value today for AAPL is $44.

    By the way, I own Apple. However, I do put short position hedges on that holding at every pullback. The potential for Apple to double keeps me an owner. The potential for Apple to go down 50-75% keeps me guarded.
    Jun 24 09:36 AM | Likes Like |Link to Comment
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