APPLE'S TASTY VALUATIONS
Apple Inc. (AAPL) is a unique company. It has the market capitalization of a widely popular and established brand but the coolness of an up and coming trend. Its products are part design genius and marketing brilliance. Surprisingly, for all of Apple's success and potential, its valuation multiple are growing slower than the earnings. While the trailing price/earning ratio is 18.69, a healthy but expected multiple for a company of Apple's cache, the forward price/earning ratio is 12.56. Once you eliminate the approximately $50 billion of excess cash, the forward price/earnings is a surprisingly low 10.90! To be clear, we are not Apple bears. But despite the valuations, there are reasons for caution.
READING BETWEEN THE HEADLINES
TechCrunch reported that Apple had blacklisted Best Buy (BBY) from further iPad 2 supplies because the company was unhappy with certain sales policies at the big box electronics retailer. This
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