I kicked off the New Year by writing a report about the top “clunkers” of 2019. These are the stocks and companies you’d do well to avoid.
And guess what… Apple (Nasdaq: AAPL) is one of them.
There are a couple of reasons that I have put them on my “clunkers” list, but, in short, they really shit the bed last week. Apple came out and said that they were no longer going to report iPhone unit sales.
Now, as a forensic investor, this is a giant red flag waving overtop the Cupertino headquarters.
As someone merely looking at Apple’s stock, this should be signal for some concern. I can respect the honesty, but this kind of transparency doesn’t help a company. It hurts it.
The CFO tried to reason that there’s no correlation between iPhone sales and Apple’s stock, which is just ridiculous. The only reason Apple did so well in the past is because of their higher pricing. iPhone unit sales fell short compared to previous numbers.
So, the bombs are falling for Apple at the start of the year. And, of course, it doesn’t stop there.
I explain more about how this once-treasured stock has turned into an over-owned clunker in today’s video.
And now is as good as ever to read, or revisit, my book Rule of 72 to prepare yourself for the new year.