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Technology Stocks : Apple Inc.
AAPL 260.060.0%12:04 PM EST

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To: MGV who wrote (190172)5/1/2016 5:27:42 PM
From: Ryan Bartholomew  Read Replies (2) of 213182
 
If profits contract less than 5% annually for the next 5 years with zero growth indefinitely after that, $112 would be a fair price based on DCF. Based on multiple compares, a fair price is higher.
If a fair price assuming 5% annual profit contraction is $112, then why is the stock priced ~$20 lower right now with roughly flat profits? This would be the arbitrage opportunity of a lifetime, where $100 calls should be purchased in droves for a certainly massive return. No?
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