NOK at $3.12 or AAPL at $565? Which is a buy? Message Board

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Technology Stocks : NOK at $3.12 or AAPL at $565? Which is a buy?

AAPL 269.64

-0.2%

Nov 6 3:59 PM EST

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From: Lahcim Leinad	5/16/2012 4:35:32 PM
	2 Recommendations Read Replies (1) of 163

Nothing but Scorn for Apple Bulls I'm not going to say that Jeffrey is a strict, dyed-in-the-wool mean reversionist but his comments on Apple were pretty sharp, almost unnecessarily so. Or maybe my reaction is exactly what he's talking about. He's got a great anecdote about a Uruguayan illegal immigrant, recovering drug addict prostitute (I think I got that right) who is overheard complaining that she got stopped out of Apple the other day, but that that the next time she's buys back in, she will go in with no stop loss. His delivery is flawlessly deadpan, the crowd cracks up. Ritholtz chortles and tries to fit it into a Tweet. Jeffrey's take is that for Apple to continue to grow earnings at this pace, they will literally have to take over the world. He emphasizes the fact that earnings growth does not equal stock price growth (yes, Apple can keep getting more profitable but that doesn't mean the stock price will). The law of large numbers is immutable is the message. His go-to comparison for Apple stock is Google stock last decade, the enthusiasm and expectations were very similar. And then he throws a chart of Google heading into 2007 compared with Apple circa now and there is an audible gasp in the dining room. They are nearly identical and Google hasn't made a shred of forward progress since... Here's Google (white) versus Apple (red): Another money quote: "If I were one of these crazy hedge fund guys, with the slick haircuts and fancy shoes and racing stripe shirts, the trade I'd put on is 10-times-leveraged natural gas long versus 10-times short Apple." I don't think he's joking. From: Notes from the DoubleLine Lunch with Jeffrey Gundlach, Spring 2012 \| The Reformed Broker

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