MGV,
Hate talking heads, no matter what network they are on.
No matter what anyone says, Apple's growth has slowed
google.com
It is inevitable when you are talking about a base of revenue of 170 billion. Now Apple, I think, has some pent up value because it has been undervalued, not that its growth prospects are so great anymore. The last quarterly numbers weren't that great in terms of growth but were great in comparison to expectations. So that is why Apple is doing as well as it has been doing. I also think there is some potential for some new products that may be able to drive revenue growth and increased profitability. Hard to say where these new products will take margins, which in Apple's case, since revenue growth has slowed, are especially important. The question really is how much revenue growth, in percentage terms and then actual dollar terms, these new products will bring. If you take the position that Apple has no innovation left, you will feel like this Gundlach character. I think most of us here feel that Apple has good potential to get another blockbuster product out there to drive some growth and will continue to be innovative so we feel there is still some value there. Especially, if you subtract out cash, you are looking at a PE slightly north of 10.
So for me, I am continuing to hold. The dividend and the low PE make Apple attractive for me as well as seeing some of the things that they may be able to come out with to drive some growth. But I can see why some may not be able to see Apple's in a positive light. I think how the share price fares will depend on setting reasonable expectations for revenues, earnings and margins. And when the new products have a reasonable chance for being ready for market.
Neal |
