Apple’s Been a Laggard Over Past Year: Buckingham

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March 21 (Bloomberg) -- John Buckingham, CIO at Al Frank Asset Management, discusses his concerns about the equity market and why he likes Apple on Bloomberg Television’s “In The Loop.”

Run-up we saw last year, we might see a tiny upside this year.

Does that mean you need to be more vigilant about how you approach investing?

I absolutely think so.

We cannot continue to go up 30% every year.

The year before, we went up nicely as well, 17%. you do need to be selective and focus on valuation.

I know there are concerns about some of the ipos that have come and the .coms.

Those stocks -- what valuation?

Or the what's that valuation?

That is one of the concerns.

Easy money has made valuation perhaps too high.

Some fear that we could be looking at an asset bubble.

Do you worry about that?

I do worry about those things.

I am focused on individual stocks.

So, we do think there are pockets of that ouitt there.

We are not buying expensive things.

If you look at the pe ratio, we are in the 14-15 range.

You do need to be selective.

You need to be careful in your shopping.

That is why we published the prudent speculator newsletter.

These are ways to invest.

Give me some picks.

You like apple, why?

It always comes down to valuation.

I would rather buy things today that have not had their day in the sun.

Apple has been a laggard over the last 12 months.

These days, they are trading at an inexpensive valuation.

13 times the earnings.

They used a bunch of cash right after their earnings went down.

They bought that $14 billion worth of stock.

Here is a company that will earn $40 per share, trading in the 500 range.

The fear on apple -- why it does not trade at a higher multiple, it is so product dependent.

Until we get that new ipad that changes the world, whether a watch or a tv, people are looking at the company and saying ok -- they spent all this money on r&d, where are the results?

You have to keep in mind that this is a company that has been innovative.

We could have said the same thing after the ipod.

What is next?

They have a history of extremely innovative products.

Let's give them the benefit of the doubt.

We have an inexpensive valuation -- even if earnings do not materialize, this is still a company that is attractive.

We will leave it there.

Think you very much for joining us from al frank asset management.

With tiffany's disappointing results -- what this tells us about the

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