Bruce Krasting | Dec 18, 2012 04:08AM ET
There is a big crowd of analysts that seem to be stuck with overly optimistic forecasts for Apple (AAPL). For example, Citi (C) did a bearish story on America’s favorite stock yesterday, but even with the bad news, Citi still thinks the stock should be $75 higher.
Morgan Stanley (MS) is behind on what’s looking like a bad call; the folks with the white spats doubled down yesterday. The one-year outlook for AAPL is to trade at $714 (with a potential upside as high as $980). That’s a big call for a stock that has lost $187B of market cap the past few months (equivalent to 3 Goldman Sachs, 5 Starbucks or 10 Dells)
Who knows? Maybe all these bulls are right. That rarely happens. What bothers me with the MS update on AAPL is that the firm sees the downside in the stock at close to zero (no lower than $495). That’s never true. Talk to those who have been saying it has been a screaming buy the last $200.
Rather than raise taxes on the citizens, or cut future benefits for employees, Towson took the “bold” action of just borrowing the money and hoping like hell that it all sorts out over the next twenty odd years.
I don’t get it, and I don’t like it. Think of this from the perspective of the taxpayers. They are borrowing money at 3.43% in the hope that they can earn a much higher return. I think Towson is gambling. Consider the investment portfolio:
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