I'm going to address this board from a stand point of someone who are licensed Series 6 & 63, 26, 7 Sec over 10 years. Has anything changed fundamental regarding apple? Not really. In fact, Apple has been beating quarter after quarter. They are beating their guidance every single time. It's just because these idiots analysts are putting apples guidance off the roof. They raise guidance so high and expect apple to beat it, and when they don't beat it, they bash it. It's all BS. These are herds, hedgies manipulate the stock at will for their masters. For example, Doug Kass of Sea Breeze partners tweeted that apple might announce split, the stock pop and he sold all of his positions. That home boy should be going to jailed for his actions.
I'm going to share the fundamentals of apples. these are the catalysts that is going to move apple in the upswing
1) China Mobile: There's no questions that apple and china mobile will ink the deal every soon. The CEOs of both companies were meeting not very long ago to ink out the agreement. Apple growth will not in the US, it will have to come from emerging market and far east. this could move the stock 100 point.
2) Cheaper Iphone for emerging market. you can bet your money on that. Samsung is spreading the market with low margin phones to gain market shares for so long. Apple will respond.
3) Dividend and share buy back. $137 billion of cash and cash equivalents, you can bet your hard earn dollar, they will return it their rightful owners. The shareholders. This will announce soon.
I will continue more.
I currently have no position. Don't get too far ahead of yourself it was options exp. China mobile has an old network, not compatable with 4G LTE. Will take them 3 years to build it out. There are other carriers in China that already offer the current iphone 5 and you can buy a fake for $300 instead of $750. Also, everybody and their brother is about to deliver a smartphone. Ride will be bumpier for a while with expanding revenue and shrinking margins.
Apple guidance 41-43 billion
Analyst avg. 45 billion
Street 40 billion with smaller margins, hence the low PE.
The problem with your thesis is that you are speculating. APPL products are turning into a commodity. Competitors are including the same features in their phones at a lower cost. As far as the $137 billion of cash and cash equivalents goes; most of that is in securities that are paying a return greater then the banks. Did you ever consider that APPL is waiting for the stock to drop further before buying? Just some thoughts.
4) New products and innovations. Apple have a lot in the pipelines. Ipod, Iphone, Itunes, Ipad are the four pillars of the company. Soon there will be iTV, Iwatch, etc. Smart phone is the future of computing. I can't live without my Iphone, trades, watch sports, watch news, tvs.
In conclusion, I have lost my life savings in apple for the past two years. But this is baccarat, 7 rounds, and it's all banker. You can double down on player, and get all of your money back and little profit.
how to invest in apple. Leap call options is the way to go. I have buy options at least 2 earnings ahead for added safety.
Longs and Strong guys. Never listen to the bashers and pumpers.
Also, a little side note. Samsung is the worst devil in the word. They produce chips for apple, they have the specs, and copy exactly what apple does. they should burn in hell for their actions. The chinese, koreans are never good at innovation, they are only good at imitation. and I'm speaking as someone who's Asian heritage. if you invest in apples, sleep well, you will get your money back.