Bravo to all those Apple Inc. (NASDAQ: AAPL) shareholders that were looking for the share price to pass $200 this year, because today it did just that! The stock reached $200.96 just before 2:00 PM EST.
I can just picture my colleague Georges Yared smiling at the news since he has been the most fervent Apple supporter. I'm sure one of our frequent commenters "Beltway Greg" is patting himself on the back at his huge call. Both of them envisioned this milestone as realistic, although perhaps not so soon.
Greg even wanted to bet me that Apple would reach the $200 mark within a twelve month period. If memory serves me correct he not only would have won the bet, but done so six months early. Apple closed on the 24th at $198.80 and is up pennies today after trading in a $4 range throughout the day.
Apple's newly released Leopard operating system upgrade is now being distributed and has found it's way into our household and millions of others while most Apple stores are a buzz with people of all ages leading one to believe that the momentum of the company has not lost any steam.
At a trailing P/E of 50 and a forward P/E near 40 I do not consider the stock to be anywhere near the bargain today's investors think it is. However, value is in the eye of the buyer, not me sitting on the sidelines watching others rake in the profits this year. To those of you many investors that made the right call this year along with Georges and Greg, have a happy new year!
Sheldon Liber is the CEO of a small private investment company and the principal for design and research at an architecture & planning firm.
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Reader Comments (Page 1 of 1)
12-26-2007 @ 8:05PM
Beltway Greg said...
Sheldon,
You are a true gentleman. Lunch on me in NYC at the restaurant of your choice. Of course, I wanted to bet Richard Gardner? of Citigroup $1 million that it would end-up beyond $115. Never heard from him. I agree that Apple is priced to perfection but it has become a new company. The 5 million Iphone rumour is astounding if it is true. The US economy has managed to survive George and Dick and their debt/war. Bravo American consumer. I'm cautiously optimistic going forward for the coming year. I've had an absolutely astounding year. The golden three for the coming year GS, Apple, and ICE. One thing I have to add though, all stock recommendations/predictions have the half-life of a turtle on the interstate. With the flow of information and the threat of terrorism it could all come crashing down tomorrow so move quickly; and don't fall in love with your own ideas.
Beltway Greg
12-26-2007 @ 8:43PM
Mr. noitall said...
O.K, congratulations to Beltway Greg on his Apple pick, and his astounding year. But Georges Yared??
I was going to nominate him for most absurd statement/article of the year for his "Solid as a Rock-Washington Mutual" article which he posted on 02/21/2007. So Georges was right about Apple, but so wrong about almost everything else. Georges not only recommended buying WaMa, but also most of the other big banking stocks. And let's not forget about his Sbux & Crox picks.
As for me I didn't like Apple, mostly because of their backdating history, I wouldn't buy into a company that I knew was that dishonest.
12-27-2007 @ 9:03AM
tenergyllc said...
Mr. N,
I agree that Georges did makes some bad picks but this story is about Apple. On that call no one was bolder or longer on the stock.
12-26-2007 @ 9:47PM
Mr. noitall said...
O.K., congratulations on your Apple pick, Georges.
It was a bold call. ......But, If I was going to trust some one's ability to give financial advice, I would judge them on their over-all track record. I'm sure Georges has a good long term track record, but all those years of experience didn't seem to help him foresee the problems that the subprime mess would cause. Let's face it Sheldon, anybody can pick10 or 20 stocks and just by pure luck have one or two turn out to be big winners. So if his Apple pick was based on some kind of knowledge, where was his knowledge when he made the bold statement that WaMu was "solid as a rock"?