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Strategies & Market Trends : Buy and Sell Signals, and Other Market Perspectives
SPY 687.01-0.1%Dec 30 4:00 PM EST

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To: Vendit™ who wrote (44478)1/24/2013 9:32:36 AM
From: Keith Feral  Read Replies (1) of 220894
 
Apple will work it's magic again, this time with less fluff generated by 44% margins a year ago. They are just as profitable today with 38% margins, which probably have some room to improve going forward over the next few quarters. Plus, Apple still has plenty of time to organize higher dividends and buybacks this year after increasing cash to $137 billion last quarter.

Apple is very cheap with a market cap of $425 billion and $137 billion in cash. That leaves them with a market cap of less than $300 billion or 1.5 times sales. Right now, the stock is trading around 9 times earnings for this year with a healthy 2.25% yield. Taking out the cash it's probably trading around 6 times earnings.

Last time that Google came anywhere close to $450 from $650 or $700, it took about 2 months for the stock to recover.
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