Monday, April 30, 2012


People have been accusing me of being an Apple Hater. My commentary has nothing to do with Apple products.  I have iphones, Ipad and ipods the products are fine.  But to say Apple products are significantly superior to other electronic devices would be a lie.  I have been providing my comments so people will think before making a stock purchase they may regret.  I believe I am reasonably intelligent.  So should I  just believe all the analysts forecast about Apple stock  are would a prudent person investigate before purchasing an asset to insure it is properly valued.  I realize my insignificance in this world and know it is short-lived.   However, I do believe in integrity and I do not see much of it on display on Wall Street.  Considering the majority of Apple’s Stock is owned by institutional investors, I believe it has been manipulated based on future earnings growth which is overly optimistic.

Apple’s last quarter net Profit of 11.62 billion and increases of 11% to 31% on earning is very suspect, considering the fact Apple’s 2007 net income was 3.5 billion.  So if the recent reported earnings are accurate, which I doubt that will mean Apple's net income for 2012 will be approaching 40 Billion which will be about 1150% from 5 years ago.   I don’t know of any company in the history of the world that has had that type of growth, it’s unbelievable.
Apple cannot continue to grow its sales and earnings at over 200% a year and is likely hitting the top of the bell curve?    If the sales numbers are accurate then apple is manufacturing at least 340,000 Iphones a day.  Their product will become commonplace, they are definitely overpriced with that kind of production rate and will lead to a price cut as currently Apple products are unaffordable to the world mass population.

Time will tell who is right, if the analysts or me.

I have reviewed the numbers and can see the waning appeal of apple in the United States which will likely spread to the rest of the world.   Apple net profit will stagnate at 40 billion, maybe 50 billion.  For God Sake they are just smart phones, and the Ipad is nothing more than an enlarged iphone.
If I am wrong I will acknowledge my error, will the analysts.  I doubt it.

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