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

To: neolib who wrote (149246)	1/25/2013 6:42:21 PM
From: Doren	Read Replies (1) \| Respond to of 213176

> cash Not to mention buying dogs with fleas and putting them to sleep. How many companies have done that?

To: neolib who wrote (149246)	1/25/2013 9:45:26 PM
From: Keith Feral	2 Recommendations Read Replies (1) \| Respond to of 213176

My biggest concern on Apple at $700 was the ultra low yield of 1.5%. The biggest reason I like Apple now is the yield is closing in on 2.5%. If and when Apple raises the dividend, Apple's yield could be enormous at current prices. They still have a lot of room to grow market share in US, Japan and China this year, just as the refresh cycle for the iPhone 4S begins to kick in. Income and growth are the only two reasons to like an investment. Apple has gone from being a subpar income stock to an above average income stock the past couple of months. I also think they will be going from a subpar growth stock back to an above average growth stock after this quarter in March. If Apple steps up the dividend program this quarter, they will become an exceptional income stock just as they make the transition back to growth after this quarter. Apple's FIRST run to $600 and higher wasn't a fluke, but it didn't carry any great yield to make it stand up very well at those levels. A higher dividend would give Apple alot more support back at higher levels on the SECOND run back to $600. I don't know how much more the shorts can squeeze out of Apple with a 2.4% yield after today. Maybe they can fill the gap back to $425 before it's all said and done, but the gap from last February is falling off the 1 year charts, so I think it doesn't mean a whole lot except the dividend will be even more attractive at 2.5%. At that level, Apple only needs a $15 billion dividend hike to start approaching a 4% yield. Plus, Apple stands to start making a whole lot more income off their investments as the yield curve continues to reflate. People love banks right now because of their ability to make more income off rising rates. Apple has the same amount of cash as JPM to invest with absolutely no debt to worry about. Apple's balance sheet has the capacity to generate a lot of income going forward. Many reasons to like Apple at $500 with a low PE and 2.1% yield. Many reasons to love Apple with a 50% discount value to the S & P with a 2.4% yield right now.