FLASHBACK | McCullough: Apple Is the Most Over-Owned Stock In Human History

Hedgeye CEO Keith McCullough didn't mince any words discussing Apple (AAPL) this past summer on Fox Business' Mornings with Maria. The following day McCullough told the London-based City A.M.:

 

"Apple is the most over-owned stock in human history." 

 

Here's a snippet from the conversation:

 

Do you think Apple and tech stocks in general are overvalued?

 

A) Apple isn’t a value stock – it’s the most over-owned stock in human historywhere “valuation” comes into the debate on down days. It’s actually a product-cycle stock, and all cycle stocks should look relatively “cheap” at the peak of a cycle

 

B) What Morgan Stanley calls “New Tech” trades at an average P/E of 149.5x forward earnings. Overvalued is an understatement. It’s obviously a bubble.

 

Is this another tech bubble? Does this look like the dotcom bubble?

 

Yes (see above).

 

Across market histories, from tulips to dot.bombs, every bubble is unique. Instead of the internet, I think we’ll call this one the cloud of expectations.

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Here's a look at what's happened to Apple since.

FLASHBACK | McCullough: Apple Is the Most Over-Owned Stock In Human History  - apple

 

***On a related note, each morning in our Daily Trading Ranges product, Keith sends subscribers his updated risk ranges on myriad tickers including Apple. Here's a look at a handful today, including AAPL.

 

FLASHBACK | McCullough: Apple Is the Most Over-Owned Stock In Human History  - z aapl