July 18, 2011

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All Eyes on Apple

ValuEngine.com Now Rates Apple (AAPL,$AAPL) a 3-Engine "HOLD"
Apple Computer, Inc. designs, manufactures and markets personal computers and related personal computing and communicating solutions for sale primarily to education, creative, consumer, and business customers. We are into earnings season again and some big names report this week. One company investors keep a particularly close eye on is Apple. Apple has been on a tear for a long time now, and new highs have been set. It is a bellwether for the tech sector. Our models have a hard time quantifying the fundamentals given the fanatic loyalty of its fan boys and girls and the mystique of the company's many must have gadgets. ValuEngine has issued a HOLD recommendation for APPLE INC on Jul. 18, 2011. Based on the information we have gathered and our resulting research, we feel that APPLE INC has the probability to ROUGHLY MATCH average market performance for the next year. The company exhibits ATTRACTIVE company size and risk, but UNATTRACTIVE market/book ratio and price/sales ratio. Based on available data as of Jul. 18, 2011, we believe that AAPL should be trading at $390.31. This makes AAPL 6.50% undervalued. Fair Value indicates what we believe the stock should be trading at today if the stock market were perfectly efficient and everything traded at its true worth. For AAPL, we base this on actual earnings per share (EPS) for the previous four quarters of $23.10, forecasted EPS for the next four quarters of $27.26, and correlations to the 30- year Treasury bond yield of 4.25%.

Technically speaking, our Chief Market Strategist had this to say, "Apple has an overbought daily chart with an all time high of $365.00 set last Friday, July 15th. My semiannual value level is $333.40 with a weekly pivot at $350.60 and monthly risky level at $375.48."

MARKET OVERVIEW
Summary of VE Stock Universe
Stocks Undervalued Stocks Overvalued Stocks Undervalued by 20% Stocks Overvalued by 20% 54.40% 45.60% 22.46% 16.86%

SECTOR OVERVIEW
Sector
Aerospace Auto-Tires-Trucks Basic Materials Business Services Computer and Technology Construction Consumer Discretionary Consumer Staples Finance Industrial Products Medical Multi-Sector Conglomerates Oils-Energy Retail-Wholesale Transportation Utilities

Change
-0.39% 0.35% 1.19% 0.29% 0.31% -0.21% 0.19% 0.52% 0.08% 0.39% -0.13% 0.04% 2.02% 0.65% 0.11% 0.37%

MTD
0.77% 0.06% 2.09% -1.75% -2.14% -0.74% -0.75% -0.16% -1.80% 0.14% -0.31% -3.64% 0.24% 0.17% -1.65% -1.56%

YTD
16.52% -4.99% -3.66% 6.60% 5.86% -10.64% 3.43% -2.87% 1.26% 4.34% 13.77% 0.10% 0.84% 8.29% -6.87% 4.53%

Valuation
0.91% undervalued 1.57% overvalued 2.82% undervalued 2.00% overvalued 3.72% undervalued 5.76% undervalued 0.00% overvalued 4.55% overvalued 0.81% undervalued 1.93% undervalued 2.26% undervalued 4.72% overvalued 3.43% overvalued 0.76% overvalued 6.48% overvalued 5.81% overvalued

Last 12MReturn
29.26% 49.55% 60.69% 22.44% 32.62% 5.37% 28.11% 18.37% 12.95% 39.35% 27.75% 30.70% 45.69% 33.97% 18.17% 21.77%

P/E Ratio
21.68 24.66 30.45 24.31 42.67 39.15 35.53 28.24 26.97 29.78 32.22 25.82 57.64 31.14 29.41 28.48