Analyst Calls Apple Sell-Off 'Insanely Insane'

Posted November 19, 2012 at 6:17pm by iClarified | Please help us and submit a translation by clicking here | 10160 views

Topeka Capital's Brian White comes to the defense of Apple's stock calling the recent sell-off 'insanely insane', reports FORTUNE. As of Friday, Apple's stock has dropped 28% over the past eight weeks for a loss of $187 billion in market cap.

Here is White's comments:

Apple is now trading at just 7.6x (ex-cash) or a straight P/E of 9.8x our CY13 EPS projection and below the S&P 500 Index at 12.5x.

Apple's discount to the S&P 500 becomes even more of a "head scratcher" when you compare growth rates. For example, between CY03 through CY11, Apple has grown EPS by 92% per year versus just 7% growth for the S&P 500 Index.

Essentially, Apple has delivered annual growth that is 13-fold the S&P 500 over the past eight years but trades at a 20% P/E discount (or 40% discount ex-cash).

While we don't expect Apple to grow EPS by 92% per annum over the next five years, we believe 20-30% growth is reasonable based on the Company's low market share in mobile phones and PCs, combined with growth opportunities in tablets and new potential areas such as Apple TV.


White concludes by saying that "those investors that have missed Apple or have been under-weight the stock now have another opportunity to buy Apple before sentiment takes a turn for the positive during what has historically been the strongest quarter of the year for the stock."

Following positive comments from analysts Apple's stock has moved up over 5% today.

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burningspear - November 20, 2012 at 3:31pm
Sad that this site is - and has always been - so thoroughly owned by Fandroid trolls comment-wise. It's worse than Youtube commenters.. Thanks to iClarified to point out the sweet spot for buying Apple stock though.. ;-)
Curtix - November 20, 2012 at 4:49pm
Really!?!?!? Really??? That's what you took from my comment? Wrong! This site has been dominated by apple fans for as long as I can remember. That's exactly my point. If the analyst were watching public opinion and sentiment, in places like these forums, his feelings about the Apple sell off wouldn't be so misguided.
burningspear - November 20, 2012 at 5:21pm
^^^^^^^^^^^^^^^^^^^^^^^^^^^ Wow, one of the troll accounts answers within one hour! (Falsely) claiming an Apple-related site has been "dominated" by Apple fans too. (LOL on that delusion) iClarified, you should do something about these trolls. - They drive people off your site. I've reached your site via the excellent guides and firmware download links you offer and stayed on reading news. Even though there are better less sites with much less trolls - including sites less Apple oriented (including Gizmodo).
Curtix - November 20, 2012 at 5:56am
I remember clearly, not more than a year ago, if anyone here in iClarified's comments section said anything remotely anti-Apple they would get flamed so badly you'd feel bad for them. Now every comment is anti Apple. That says it all.
Apple lost its touch - November 20, 2012 at 5:35am
Apple lost its innovative design and thats why they are going down, the iPhone 5 seems to be the last iPhone I will buy, only reason I bought it was LTE, and I just love the speed, but other than that its just a stretch out 4s, the market knows they are not introducing new technologies and thats why they stop growing. if the bring a completely awesome out of this world new device then they will get back on track but once you fall behind its really hard to get back to the front
Curtix - November 19, 2012 at 9:57pm
This is a perfect example of how knowing markets means nothing compared to knowing product. No one who has followed this company and it's produce like any of us here on this site are the least bit surprised by this. I would bet all that Apple is worth that Brian White will never read any of our comments. Because he isn't a member here. If he were, his information and opinion wouldn't be so wrong. Apple, smell the smoke. Your tail is on fire. Revamp your OS or go the way of the dodo.
U all know - November 19, 2012 at 7:53pm
That Apples stock and almost all of The stock market is overvalued And that until scott Forstall bevomes CEO apple Will continue to lose stock value
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