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Old 12-17-2012, 09:56 PM   #432
SteveEisenberg
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Quote:
Originally Posted by Penforhire View Post
They have been one of THE most-widely held and liquid stocks around . . .
The Dow stocks are also highly liquid, and a quick web check shows that since late September they declined maybe 3 percent while Apple declined about 26 percent. I don't know that you can fully prove why a stock moved after the fact any more than you can predict that it will move before the fact, but, still, your liquidity theory seems inherently implausible.

Quote:
Originally Posted by Penforhire View Post
You're an extreme doubter if you think a stock that habitually sold at a PE of 30 to 40 now belongs at 12 or less.
Stocks belong right at the price they are currently, since this is the only price where buyers and sellers can meet. It could be that the public is being dumb in undervaluing Apple today, but their collective IQ won't be any higher six weeks from now.

If you are actually putting your money where your mouth, or at least typing fingers, seem to indicate, I advise reading A Random Walk Down Wall Street.

Last edited by SteveEisenberg; 12-17-2012 at 09:59 PM.
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