I think alot of people on here need a reality check. Aapl told you they are going to take out 15% of the float, and bump the div to 3%. They also said they will use debt to do that. What does that tell you? They have extreme confidence in their cash flows going forward. They still have their cash and will do something with it.
Next quarter will not be good. Why? Because they know people that have older Ipads or Iphone 4 or S's will wait til the next cycle. That is the only reason revenue will be down. They are in a true quiet period.
What everyone is missing is there is now a massive floor in the stock and the weak hands are completely out. Unless you think they have nothing in the pipeline, this goes nothing but up from here.
I hope alot of the trash talker shorts on here got washed out. All big talkers, owing puts and talking a big game. Please keep it going.... we love you..
Apex. Makes good sense. If the new product launch wasn't known we'd be up. If however, the China deal comes through, or a leak about a larger phone ( that seems to be what the analysts think we need ) trickles out, we may jump prior. Good reasoning on your part. Now I'll wait for the comments .
Sentiment: Strong Buy
Aprex, I agree with you - unlike some of the momo shorts here. AAPL is not fundamentally changed as a company compared to last year. They still have the same products, management and growth. The ONLY issue is the short-term squeeze on their margins. I say short-term because we all know they will have new products coming out later this year which can give them pricing power again. They will come out with the cool watch and tv. They will come out with their new cheaper iPhones for the emerging markets. They will come out with the new iPhone 5s and possibly iPhone 6 (6 because it will have a 6 inch display).
And once the glass-half-full attitude of the investors is swayed to glass-half-full, we'll have a massive rally. It'll be as dramatic moving up as it was moving down the last 6 months. Everyone is hung up on the lowered guidance for this quarter. Wait till ANALysts start to realize and communicate the power of the $60B buyback! That's like AAPL adding another 15% to their earnings. It's also smart to borrow and repurchase shares. The shares would cost AAPL over 3% in dividends to be paid. They would borrow at less than that AND get a tax write off on the interest expense. So they would likely be ahead by about 2% of the amount borrowed EACH YEAR!! That's smart management.
BTW, the reason why the AAPL suppliers are not doing well is not because volume is drying up - that's obviously not the case based on the number of units of products sold. It's because AAPL is squeezing them to improve it's own margins.
News was average....I feel like I did weeks ago. $500 is not going to happen this year. This is still a p/e story in that its not going over 10. $400 is fair price to own and hold this stock.