AAPL set to open $10 over yesterdays close

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mikebw wrote:
Sorta reminds me of the housing market where the prices were going up so fast that I had to get in before I was priced out of ANY house. Of course we know that didn't last. How much different is AAPL than the housing market of 2005-2007?

Very different. Apple's valuation is based on fundamental financial measures, not speculation.

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GGD wrote:
At what point will it no longer be considered "cheap". The PE was about 12.7 just after the last earnings were announced, and now it's up to around 16.6. Is it still "cheap"?

The S&P 500's P/E average ratio is currently 23.2. For the last decade it was 20.2. In what universe does the world's greatest corporation not warrant at least an average P/E ratio?

http://www.multpl.com/table

Summary: You're damn right it's still cheap.

[mikebw]

Article Accelerator wrote:
[quote=mikebw]
Sorta reminds me of the housing market where the prices were going up so fast that I had to get in before I was priced out of ANY house. Of course we know that didn't last. How much different is AAPL than the housing market of 2005-2007?

Very different. Apple's valuation is based on fundamental financial measures, not speculation.
That seems to make sense, but the stock market is not tangibly based on anything except hopes, worries and fears. If we all keep hoping that Apple will do well then AAPL will do well. If anyone begins to doubt it then AAPL might take a hit. Not that I expect that or want that to happen, but there is no direct physical link between stock prices and company performance, as we have all seen in the past.

[Anthony]

Volume over 50 million today! Wow.