Question:
Chuck, Way back on December 8th, I noticed a divergence between the MACD and the price of AAPL. I asked you if you concerned yourself with divergences. You didn’t really answer that question, but you did say:
“I think it [APPL] is the most undervalued quality growth stock out there and am buying any dips.”
I have gone through every bit of material you have published to see what method you use to determine a stock’s vaule or even relative value (undervalued/overvalued).
Can you please teach us the type(s) of analysis you perform to be able to make a statement like the one you made about AAPL’s value?
Thanks!
Answer:Yes I look at equity growth which can be found on Google finance in the annual balance sheet section. AAPL is growing its stockholder’s equity at more than a 100% rate but has a P/E of 14 so it is still undervalued. Equity growth is covered in several of my videos and books.
