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