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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: E_K_S who wrote (56781)	1/28/2016 9:30:47 PM
From: MNTNH	Respond to of 78753

I think looking at cash is not likely to be a good approach in this case. The reason why APPL got hammered is because of slowing China iphone sales, and they are increasingly like someone said, a one product company. Their latest products have been somewhat disappointing. You can even feel it from their ads. Personally I picked up some programming just to open my eyes a little. Admittedly APPL has superior hardware for the macbook but that isnt the driver of growth. Its the people who are fanatic about the brand and buying the phone. Think about it, a macbook air costs (in my area) about S$1.3k+ while a iphone 6 costs about north of S$1k +. No prizes to guess which churns more money. And the reason why FB is priced higher is because it seems their profit can still grow at 30-40% p.a. levels. Additionally Mark talked about untapped business segments such as video, occulus etc. Also mobile ads growth has been fairly strong.

To: E_K_S who wrote (56781)	2/1/2016 5:44:00 PM
From: Graham Osborn	Read Replies (1) \| Respond to of 78753

My screener says that AAPL is only 7% cash/ cap. Cash of 16B vs LT debt of 53B. Whatever the case this is basically a low PE cyclical. Deploying their cash strategically will not work right now because the only assets of sufficient size they can buy are overvalued as well. That is especially true of media companies and DIS. Assuming acquisition pressure, a dollar in my bank account is worth more than a dollar in AAPL's (not always the case). I notice they stopped growing their tangible book in 2012 after steady growth since 2000 at least. I think APPL has seen its best days..