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Let's Capitalize On 2014's Dumbest Apple Article

NEW YORK (TheStreet) -- We're only four months into the year, but I don't believe I will read a worse article on Apple (AAPL - Get Report) than the one written by Forbes contributor Peter Cohan.

In a story written Monday, Cohen offers four reasons why investors should avoid Apple stock. Other than reciting popular talking points, Cohen fails to demonstrate any real understanding of Apple's business, at least to the extent that his knowledge exceeds someone who's never glanced at headlines.

The first mistake Cohen made was rely on the same old tired argument that Apple's innovation is dead. Whenever an article cites Jobs' death as a reason for Apple's demise, it's a sign that the author has very little material at her/his disposal to make the case.

Cohen began by pointing out that Apple stock has lost 25% of its value since peaking in September 2012. Factoring Monday's close of $523.47, he would be correct. But he ignored that Apple stock has been up 36% since its bottomed around $385.

Next, Cohen points out Apple's $159 billion cash reserve. But while he notes Apple's net profits margin of 21.3%, Cohen goes on to say that Apple posted an "11% drop in profit in the last year." That's actually incorrect. In the January quarter, Apple posted quarterly net profit of $13.1 billion, or $14.50 per diluted share. This was no worse than flat on a year-over-year basis.

Cohen's article offers no credit to Apple's management for achieving its net profit margin of 21.3%. Nor does he cite Apple's strong gross margin of 37.9%, which is still the highest among hardware vendors, especially in a period of low average-selling prices. Not to mention, Apple's revenue growth has slowed to just 5.6% year-over-year.

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