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Technology Stocks : Apple Inc.
AAPL 277.23-0.3%3:59 PM EST
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To: give_me_a_break who wrote (148997)1/24/2013 8:43:22 AM
From: Keith Feral  Read Replies (1) of 213174
 
$40 billion in the US and $100 billion outside the US. That's pretty consistent with the percentage of sales between the US and foreign markets. That gives them 4 years of dividend coverage as that cash balance continues to grow. Still leaves them plenty of room to grow the dividend nicely again this year. At current prices, a dividend hike would have a meaningful improvement on the yield around 2.25%. Whatever the case, their balance sheet is still rock solid.

With all the rhetoric about supply chain and gross margins now behind Apple, I have little doubt that things will get much better for Apple very shortly. At the beginning of 2011, Google went through the same transition from $750 to $450 after December earnings release. It probably only took 2 weeks for Google to regain their pre earnings level, and really never looked back from there.

Pricing was not much of an issue for Apple this quarter, and revenue quality was great. The cost of goods sold has been spiking the past couple of quarters, but I don't see that getting any worse than the 38% GM that the company is projecting. In fact, it probably improves back to 40% or so over time.

Usually when the slug fest is over, the market has a very generous way of giving stocks plenty of room to recover.
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