Apple Stock to Go to $200? Vanity Fair Writer Loses Her Mind

NEW YORK (TheStreet) -- Apple(AAPL) has been the subject of hyper-criticism, some of it justified. But this last one, I just can't let go. I wouldn't be a good journalist if I did.

Vanity Fair contributor Bethany McLean was on CNBC discussing Apple's "demise," saying the stock could go to $200 (from $444 today). While anything is possible (she did correctly call the demise of Enron), it's more likely that $200 is in Apple's rear-view mirror, absent a stock split or a complete mismanagement by the people in charge, namely CEO Tim Cook.

Here is McLean's interview in its entirety.

First, for McLean to question the opacity of Apple's earnings power is laughable. Apple has increasingly made itself more transparent, not less. Apple now breaks down not only product revenue, but geographic sales as well.

Even if you're going to go as far as to mention Braeburn Capital, Apple's asset-management arm, as opaque, that's a weak argument. Per its 10-Q, Apple had more than $42 billion in U.S. Treasuries, over $49 billion in corporate securities and around $6 billion in money market funds and CDs. That's not exactly playing games with the company cash. In its entirety, Apple had $137.1 billion in cash and cash equivalents at the end of the quarter.

McLean describes Apple as "basically it's a phone company with a few other businesses." McLean is correct in the sense that the iPhone does account for most of Apple's revenue. Last quarter, the iPhone accounted for 56.5% of Apple's $54.5 billion in revenue. However, to suggest it has just a few other businesses is ignoring facts. I guess the 19.5% of quarterly revenue the iPad generated doesn't mean anything. You are entitled to your opinion, but not your own facts.

Apple: A Great Company, for Now a Toxic Stock