Apple touches $161.83, a new all-time intraday high

Hey Mr. Barr, how’s that ‘dump Apple’ idea working out?

Wall Street Journal’s markets editor Colin Barr told readers Friday morning that it was time to sell their Apple shares. His reasoning was specious. His timing was terrible. A week ago, Apple was trading for $149.10. Today it touched $161.83, a new all-time intraday high. See Spectacularly bad advice from the Wall Street Journal.

Update: Apple closed at $160.08. That’s a new all-time-high closing price, the third this month, according to AAPLInvestors.net:

Click to enlarge.

9 Comments

  1. David Emery said:

    How many other ANALysts are under water now?

    By the way, that’s $1,132.81 for original Apple stock before the 7:1 split.

    1
    August 8, 2017
    • George Row said:

      David said:
      “By the way, that’s $1,132.81 for original Apple stock before the 7:1 split.”
      Or indeed $4531.24 if you unravel the other two stock splits. Hence, the shares I bought for $14 back in 1997 have grown 324x. 🙂

      4
      August 8, 2017
      • David Emery said:

        If I’m doing the math right, MSFT has appreciated almost 1000x (99,826%) since its IPO of $21 and spit 288 to 1. I remember when it first came out, I thought MSFT might be a good investment, too. (Didn’t act on either AAPL or MSFT, I didn’t have the $ to invest back in the early ’80s.)

        0
        August 8, 2017
    • Ken Cheng said:

      So Brian White’s $1111 target finally was broached. How many years after he set that target? 3?

      0
      August 8, 2017
  2. Fred Stein said:

    Love it.
    I did a little more digging. There are several artifacts that drove the original write-up by Ned that Colin just re-hashed.
    1) Acquisitions: Over the last 45 years a lot of companies got to the top by acquisitions. GE is a prime example. Also HP. I added all HP’s acquisition from 1996 to 2016 and the total was greater than HP’s 2016 market cap. The biggest acquisitions are often disasters. Apple famously takes great care w.r.t. acquisitions.
    2) Frekonomics: The S&P is self-healing. Losers fall off the bottom. Growth companies enter. Over 45 years that guarantees higher growth.
    3) Portfolio rules: Most funds can only invest in Large Cap stocks, which generally pushes up the valuations of the top companies.

    There’s data to support this higher valuation of top stocks. Of course Apple’s P/E is LOWER than their peers. So this tendency of top stocks to be over-valued does NOT apple to Apple. From this thoughtful WSJ article: https://www.wsj.com/articles/are-stock-prices-dangerously-high-it-depends-how-you-look-at-it-1502071980

    “Mr. Kleis notes, for example, that the average price of the S&P 500 is driven up by the 100 largest stocks in the index, with the remaining 400 trading closer to their historical P/E levels.”

    4
    August 8, 2017

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