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

To: Ryan Bartholomew who wrote (190042)	5/1/2016 2:06:34 PM
From: MGV	Read Replies (1) \| Respond to of 213182

Until recent months, profit growth had been priced into the market value. You write that like you know what you're saying but, you show no signs of knowing a reasonable basis for saying it. A DCF model assuming 3% iPhone sales growth for 5 years with a terminal growth rate thereafter of 0%, punches out a value of $124. The current price assumes declines in iPhone sales of over 5% annually for five years and a terminal rate of minus 1% thereafter. The DCF suggests the exact opposite of what you represent. There has been no profit growth priced into the market value for some time. The share price is oversold and discounts, not only no growth but, perpetual declines in sales. If profits contract over the coming year, what's a fair price? 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.