Hold Onto Your Apple: Its PE Is About To Experience A Gut Wrenching Drop

Here's my October prediction: Apple's PE is going to get a lot smaller, even if the stock price goes up 10%.

You can count on that sad prophesy. Apple's PE is already an absurdly low 16 despite its booming business. Compare Amazon's much higher 98 PE for far less growth. Even Yahoo's valuation is higher!

How could the PE go any longer? After all, Apple's growth story is intact. If the analysts even come close in their predictions, this fiscal year's earnings are going to be up a whopping 80%. Yet, even sensational earnings won't matter. The sad fact: It is virtually certain the company's valuation will drop further. Before we go any further, look at how little the market values Apple's growth:

We're about to go experience a gut wrenching PE drop. Hold onto your Apple.

Apple closes its fiscal year in a week. For the last four quarters,