Is AAPL significantly undervalued?

[Ghost of Cutten]

Quote from bozwood:

If AAPL "only" grows at 20%/yr for 10 yrs its mkt cap will be about 1.35 trill. *If* the economy grows at 5%/yr for the next 10 yrs, GDP will be about 22.8 trill. At that point AAPL's mkt cap would be about 5.9% of GDP. Currently the largest mkt cap as a % of GDP is about 2.3%.

I think that argues for overvaluation. It's not easy to grow 20% from the current base for 10 yrs (my definition of long-term in this case).

How does that argue for overvaluation? Your premise appears to be that if something does not grow at 20% per annum for 10 years, then it is overvalued. That seems a rather flawed premise, to say the least.

 

[noddyboy]

Quote from Ghost of Cutten:

If two people are long 1000 shares of AAPL, one from 245 and one from 25, how much they make tomorrow is 1000 times the change in the share price tomorrow. The guy who is long from 25 doesn't make any more tomorrow because he made money in the past from a much lower price. So yes, cost-basis is irrelevant to how much you make or lose in the future - all that matters is the current market price and your future exit price.

I agree -- to the extent that people mark to market and avoid mental accounting.

 

[FanOfFridays]

Quote from retaildaytrader:
ATTENTION: Apple is right now falling through that trap door as predicted by myself right here on this site. This is a good time to get out. Get out now and go short!

That was April 5.

Coinzy, stocktrad3r and this guy should have a separate forum just to archive their posts. They are the ET Triumvirate of Stupidity.