It's Very Encouraging How Stupid The Bears are on Apple
I haven't read a single post on this board from an AAPL bear that make a remotely compelling bearish argument against Apple. Just a bunch of children pulling numbers out of the air; 300; maybe I'll buy at 380; AAPL is dead, etc. etc.
This little hiccup is merely a bump in the road in AAPL's long upward trajectory. All one needs to do is pull up a 5 or 10 year chart to see how little and insignificant this short term hiccup is. Yes, Apple will continue to thrive and grow earnings. Even if they have to grow them until both growth and value funds will HAVE to by or breach the fiscal responsibility of their investors; which any value fund not invested in Apple right now is doing. AAPL will be back to 600, 700, 800 and yes, it will be the first trillion dollar market cap company. At the rate they are going they will have close to 500 billion in cash in 5-6 years. No reason why they cant to continue to grow at 10-20% for the next five years. Even if they only grow at 5% they can grow earnings another 5% a year just by buying back shares.
Anyone who has the slightest modicum of an idea of how to value a stock in absolute or relative terms knows AAPL is ridiculously oversold at this level. To suggest that the stock deserves to be trading at levels lower than here shows a complete lack of understanding of how to value a stock.
Let me disclose that I am neither a short nor a long but it is just the fascination of the company that leads me to these message boards and articles on Apple. Apple is a fantastic company and I own apple products but I think you should agree that as of now the bears are in command and it would be arrogant to label them as 'stupid'. I had always wondered when this stock was at a market cap of 1/2 "trillion" dollars and managed to generate 50 billion dollars every quarter with the stock well above 600 dollars.C' mon this has to stop at some point. As of now it is still fairly valued but I think you will agree that going forward it is going to get more and more difficult unless they come up with some new product which has the potential to become another iphone. The funny thing is that there is a very small short interest in Apple atleast as of dec end so the selling is mainly people just getting out of the stock. I think the huge market cap makes it very very difficult to grow.
I'm glad you know the future. You should be thrilled to be able to pick up so many cheap shares and options.
Nice to see you are unconcerned about the decreasing margins, slowing growth, and the upcoming EPS drop yoy for the second, and probably third, and fourth quarters. The facts are EPS for 2013 will be lower than 2012 and probably by 10% or more. That obviously doesnt concern you, but it's freaking out a lot of other people.
No one knows what tomorrow holds, and Apple might halt that trend. Or it might not.