Thought you might be interested in my thoughts on
Apple stock.
Apple is extremely under valued! From a company perspective, Apple releases new products at certain periods of time, with long dwell periods without apparent activity. The market seems to assume that Apple, during these dwell periods, is not innovating, and creating product improvements, new products. Based on past history, and intellectual and engineering resources this is just flat wrong! Apple is a proven would class innovator and will continue to do so…watch the product released over the next 18 months. From a stock perspective, Apple is going to buy back $60 billion in stock to be concluded by 2015. That means that each existing stock will be increased by about 15% automatically, over this period. Plus they will pay out about $40 billion in dividends over this period! Apple has not started to buy stock in the open market yet. When they do, this will increase aggregate demand and will elevate the stock price, and it’s nice to get the dividend every quarter! $150 billion in cash is very reassuring. Cash
flow is and will continue to be superior!
Now for a list of Apples core advantages: Superior innovation on new and existing products, one of the worlds best brands, unified operating system among products creates “very sticky” customer loyalty and superior functioality between Apple products, superior product quality/custom designs… chips, cases, batteries, etc. provide better performance/differentiation, world-class Apple Store network, world class management…chosen, educated by Steve Jobs, iTunes, and huge economies of scale and buying power. And did I mention China, other world markets… positioned with the best products right in the middle of the Mobil world explosion….large and growing markets…yes there is some competition,
but room for all!
Apple stock is on sale, better get some
before it goes up!
Larry
Sent from my iPad
Sent from my iPad
