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Technology Stocks : Apple Inc. -- Ignore unavailable to you. Want to Upgrade?

To: zax who wrote (148976)	1/23/2013 6:50:04 PM
From: Cogito	4 Recommendations Respond to of 213176

You're right that it's one hundred dollars, not two hundred, above your called high. You should be so proud. Nothing else in you post is correct or meaningful.

To: zax who wrote (148976)	1/23/2013 7:07:57 PM
From: Keith Feral	8 Recommendations Read Replies (4) \| Respond to of 213176

Apple recorded the best revenue quarter in history. With $137 billion in cash, Apple will be trading with about a $300 billion market tomorrow after the drop. With $180 billion or so in revenues this year, that puts the prices to sales ratio on Apple around 1.5%. As they generate another $50 billion or so in cash this year, that puts them around $190 billion in cash by the end of the year. I don't think a valuation of 1 times 2013 cash and 1 times sales is much to be nervous about for very long. The only thing really bothering Apple is the higher cost of sales wiped out revenue growth, almost dollar for dollar this quarter. Taking 38% GM as a long term assumption for Apple, that leaves them with about $10.75 in EPS next quarter. I expect some of the higher end estimates will have to move closer to $10 or $11 for next quarter, but I think that's a very sustainable business model for Apple going forward which probably leaves them with $46 in earnings for this year, which leaves Apple with a PE of 10 for this year at $460. If Apple is guilty of anything, they were too aggressive this quarter with new products. But, I think they had to get very aggressive to stay ahead of the competition. At the end of the quarter, iPhone prices were very stable, iPad prices were down 17%, MAC prices were up and even the iPod prices were up. I really can't get too stirred up about Apple at 10 PE, when they are making 5% of their market cap in cash every quarter. That's a helluva bargain, if you ask me.

To: zax who wrote (148976)	1/23/2013 8:06:11 PM
From: BDAZZ	3 Recommendations Read Replies (2) \| Respond to of 213176

He's got you there Zax. If you both had applied for a brokerage job based on your Apple call at 350, he easily gets the job. Bragging that your call is only off by a hundred dollars doesn't help either.

To: zax who wrote (148976)	1/23/2013 8:38:10 PM
From: pyslent	Respond to of 213176

Apple and Sony are the companies you should be comparing. Apple makes and relies on consumer goods, a very fickle and competitive market. Zax, I actually like your answer here-- it explains your perspective. Apple's unprecedented ability to print money is indeed predicated on a fickle consumer market. Like Sony, Apple loves lock-in. Personally, I think they do it much better than Sony ever did. But I question your contention that enterprise adoption could insulate a company from the ebb and flow of consumer fancy. Look at RIMM or even Microsoft. Falling out of favor with the masses (the consumers) has hurt them too. To be successful, Apple needs to keep making products that people want. That much I agree with. Edit... On second reading, I see that RIMM fails your test of enabling "a competitive ecosystem of hardware manfacturers," so you would have predicted their demise as well. So then who would you consider a safe investment (other than Microsoft and Google, for Android).