Apple gets creamed

Wow. Apple got juiced last evening. The stock fell below 400 Dollars for the first time in a year and a half, ending the session down 5.5 percent to 402.8 Dollars. 52 week closing low. The dividend yield is now 2.63 percent. That is right. It now has cash as a percentage of market cap of 36 percent, that is about as high as it got in the financial crisis of 2008, cash as a percentage. And I am just guessing that they probably have more cash, not less. You would swear, as Cramer said on his show, that they were going to register a loss next week. Of course we are talking our own book.


Debating Apple's Stock as It Hovers Near $400. That was interesting. Blodget from the BusinessInsider points out that Apple trades at a monster discount to the broader market, and trades at the same levels as "broken" tech stocks like Dell, HP themselves and even attracts a discount to Intel. Really? That is dumb. But most of the fall yesterday was a result of a warning that did not actually mention Apple by name.


Cirrus Logic is the provider of various components to Apple. Here was their results release a couple of days ago: Cirrus Logic Announces Preliminary Q4 Revenue Increases 87 Percent Year Over Year to Approximately $206.9M Wow. It hardly looks like a gigantic miss to me. Guidance is poor. But as this holder of the stock points out, Cirrus is so cheap: Cirrus Logic: Really, 5 Times Earnings? 90 percent of their business comes from Apple. So warning that a key customer had told them to back up a little equals proof that the current quarter won't be a positive surprise for Apple. Amazing. Of course we will see.