At some point in the pas 18 months or so the price of Apple (NASDAQ:APPL) took on a life of its own. The markets have been floating on a mix of hope and unlimited central bank swaps that creates flow in a monetary system that is now nearly incapable of properly valuing anything rationally because all of the statistics have been completely by interest rate rigging, bailouts of companies and countries and agencies actively buying assets to support their prices for fear of the muppets catching on that the whole system is completely and irretrievably insolvent.
Apple, unfortunately, being one of the few companies that is still capable of selling large numbers of very cool devices (even if I don’t personally own a single iGadget) at profit margins that make everyone else in nearly every other industry green with jealousy. That success brought on an ever stronger, widening gap between potential growth and safe haven capital hiding on the part of asset managers the world over.
So, with all of the signs pointing to even Apple not being able to maintain their impressive growth rates the stock price would push higher into the teeth of deteriorating markets the world over. The Wall St. squids, sharks and whales knew better at some point during the quarter but chose to leave their unrealistic revenue and earnings targets in place until Apple eventually had to disappoint the momentum monkeys while the smart money got out during the heady times above $600 per share.
A 10% earnings 6% revenue miss for the most covered, dissected and discussed stock on the planet speaks volumes to the surreality and dishonest nature of sell-side analysis the world over. And yet, I still believe Apple is a $1000 stock in the making, just not today and not in the next quarter. Not until China and Southeast Asia take over the reins of the world economy.Previous Post » Jumpers of the Day: JP Morgan, Home Depot and Wal-Mart Stores Inc