Apple Computer is doing very nicely, thank you very much. AAPL share prices have doubled over the last year, and are at an all-time high, yielding a market cap of just over sixty billion dollars. Earnings have doubled, revenues are up by two-thirds, the company is cash-rich and debt-free, iPods are selling fast, but that’s not enough for Alyce Lomax and the investment analysts at The Motley Fool.
Despite all of the above, Apple did not make The Motley Fool’s Stocks 2006, which is their list of top recommended stocks for the coming year. It seems that Alyce didn’t care for Apple’s discounted cash flow (too low), their P/E ratio (too high), and the competition (too many). Oh well, she may be right, plus there might be a head and shoulders pattern forming, and the Feds are likely to keep raising interest rates.
2006: Year of the Apple? – Motley Fool, January 26, 2006
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I wonder how they feel now about not recommeding Apple stocks in ’06.