Salient to Investors: Average daily price moves for the S&P 500 have seen the steepest decline since the 1930s – the last time the annual average was this low was 1995, when the S&P 500 rose 34 percent and doubled in the next four years. Going back to 1928 shows stocks gain
READ MORE... →Salient to Investors: Hedge funds Viking Global Investors, Third Point, and Omega Advisors all sold their entire positions in Apple in Q4 2012. Hedge funds Lone Pine Capital, Eton Park Capital Mgmt, Tiger Global Mgmt, and Jana Partners all sold shares. Hedge funds Appaloosa Mgmt, David Einhorn’s Greenlight Capital, John Paul Tudor’s Tudor
READ MORE... →Salient to Investors: Analysts have cut price targets by 21 percent since the stock peaked in September 2012. Apple is trading at 10.6 times reported earnings versus the S&P 500’s multiple of 15, near the widest discount since December 2000. The last time Apple traded at such a discount, it went on to
READ MORE... →Salient to Investors: Mark Freeman at Westwood Holdings said we’ve moved so far so fast that the market is just looking to take something off the table, and needs a positive catalyst to take it higher. Jeff Sica at SICA Wealth Mgmt said there’s concern that Europe will implode and the contagion effect
READ MORE... →Salient to Investors: At least 20 analysts lowered price targets after Apple reported its slowest growth rates in years and said the trend will continue. Abhey Lamba at Mizuho Securities USA said Apple may more closely resemble a value stock, as growth has slowed much faster than anticipated. Avi Silver at Credit Agricole Securities
READ MORE... →Salient to Investors: George Russell at Franklin Equity cut its holdings of Apple to 4.2 percent at the end of 2012 from 7 percent in 2011, saying it lacks a strategy to sell cheaper smartphones in emerging markets such as China and India, with the US market saturated. Russell said Apple hasn’t disclosed a low-end phone market
READ MORE... →Salient to Investors: Citigroup, Pacific Crest Securities, Mizuho Securities USA, BMO Capital Markets and Canaccord Genuity have cut price targets for Apple since Dec. 16 over weak iPhone sales and concern for market saturation and the need for new breakthrough products to fend off rivals Google and Samsung. Michael Obuchowski at North Shore Asset Mgmt said the latest iPhone and
READ MORE... →Salient to Investors: Jeffrey Gundlach at DoubleLine Capital says: The first phase of the coming debacle was the 27-year buildup of corporate, personal and sovereign debt to 2008. The third phase will be deeply indebted countries and companies defaulting sometime after 2013. Buy gemstones, art and commercial real estate and other hard assets. Chinese
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