Are Apple Inc. (AAPL) Shares Rotten?

You can clearly see two periods of divergence between the two: The first as Apple shares shot ahead of the market, peaking above $700 on Sep. 19 and the second one, which is ongoing, during which the shares are underperforming. As far as herding goes, according to Goldman Sachs, the investment bank, Apple Inc. (NASDAQ:AAPL) was the most heavily owned stock among hedge funds at the end of 2010 and 2011. That was not the case at the end of last year, as the stock fell to third place in Goldman’s ranking behind AIG And Google. In other words, pile in as a group and leave together as well.

Momentum is a reality, but ask yourself: If you’re a value-oriented investor, when are you most interested in looking at Apple shares: when they are above $700 and everyone is clamoring to own them or when they are no longer the flavor of the month and the price is knocked down?

The article Are Apple Shares Rotten? originally appeared on Fool.com and is written by Alex Dumortier.

Fool contributor Alex Dumortier, CFA has no position in any stocks mentioned. You can follow him on LinkedIn. The Motley Fool recommends and owns shares of Apple.

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