"The one point they did try to make was Apple's 3% margins, which are low regardless of how you look at them. They might've actually made a point if they had compared it to other companies like Dell and MSFT, but they didn't. "
The fact is, even during this time when AAPL is in a transitional period and revenue is at a low in company history, it is still very high compared to its market cap, and the revenue of other companies.
That should be seen as a positive thing,...it's one of many of Apple's attributes. Imagine how things will be like once things are back on track. Then imagine what it'll be like when the revenue starts to grow. That's the potential.
I don't see The Motley Fools complain about AOL's valuation. TMF would not exist had it not been for Iomega and AOL... The run away stock price of IOM and AOL gave birth to The Motley Fools...so I guess it would't be right for TMF to criticize AOL now, would it?
AOL's revenue is about one third of AAPL, it's book value is less than one fifth of AAPL,It's PE is 10-20 times that of AAPL. It's profit is about half of AAPL its earnings per share is one fifth of AAPL. Yet, its stock trades more than double that of AAPL. Its market cap has been inflated to 5 times that of AAPL. And you know what? It's net margin for AOL is also about 3%!!
I'm not bashing AOL because I have anything to gain financially. But I'll certainly get quite a bit of emotional satisfaction seeing TMF eat its words. Iomega has fallen...maybe when AOL take a dive the Fools will shape up.
Eric |
