This is the best example of stupidity ever seen...
So Apple trades at a P/E of 9. Apple now will pay out a quarterly dividend of 3% yield. They have zero debt. They are buying back shares equal to 60 billion over 2 years. They will continue to generate cash each quarter equal to $10-$20 billion free cash. They will continue to produce revenues of approx $20+ billion per quarter. They still continue to have the best operating system, eco system, hardware and design. Best products by far.
All of this, yet, analysts and traders keep saying that Apple does not innovate. Well, honestly who cares if they never put out a new product. What's wrong with selling the same item over and over again? Coca Cola has been selling the same Coke for 100 years, J & J sells the same band aids etc. And what the heck does Samsung produce? A plastic phone with a silly larger screen? Wow, thats really innovation for you.
CSCO,INTC,MSFT,DELL etc...all have great cash hordes....but no growth. Apple is now like all of them...a value play with a nice dividend. The stock will probably fall more, maybe back to $300 by the time its finished and there it will wallow for all eternity. Short with extreme prejudice.
It.s called Control. We now live in an upside world. Everything today that is logical is illogical. There is no way this market should be up where it is. Pure illogical with the worst global financial indicators and all these companies are just draining the marrow out of the bone but the real numbers are revenue which is not there. But, we have wonderful CNBC advocating that the market is the only place to be in. Total control! Technicals that use to mean sense are totaly thrown out the window as well. I am 61 and have lost a fortune and am getting out and saving what life I have left and getting out of this insanity. Do the same. Peace
Dont be so hard on yourself. The forward PE is 10, they just took on debt to buyback shares, free cash flow is shrinking, but the rest is pretty accurate.
Maybe. Revenue is set to be flat next quarter yoy, and EPS is contracting further than this quarter. All in all they are giving the signs of a company where growth is over. Probably not a RIMM or NOK, but certainly no reason to be buying yet. Wait until the dividend is closer to 4%.