The "bounce" already came & went earlier this morning.
Longer-term, Apple will have to actually DO something positive concerning their cash hoard, in terms of benefitting the share holder, instead of feeding the greed and lust of the executives for wealth and power.
MarketWatch presented Goldman Sachs' top ten picks for upside potential in 2013 earlier today. It was nice to see two of my core holdings listed as #1 and #2 on the presentation and have two other of my positions in the top ten as well. Here are Goldman Sachs' top three picks for upside potential in 2013 profiled.
#1 - Apple (AAPL) - No surprise here given the low valuation of this once beloved market darling. Goldman Sachs sees the shares climbing to $660 a share in 2013.
4 reasons AAPL is extremely cheap at $458 a share:
The stock is selling at just 9x forward earnings, a deep discount to its five year average (18.2).
The company has over $135B in net cash and marketable securities on its balance sheet. This is enough to buy Ford, Nike and Kimberley Clark and still have change left over to put in perspective.
Apple's growth story is not over. It is expected to grow revenues in the mid-double digits for both FY2013 and FY2014 and the stock sports a minuscule five year projected PEG (.52).
The company is generating over $40B of cash annually and the stock is selling at the bottom of its five year valuation range based on P/E, P/CF, P/B and P/S.