I am NOT someone who focuses on charts, and that voodoo. However, if you look at price action it appears a lot of short term focused people are trapped just above this price. As the price rises, these people sell just to get out even. Until this is consolidated by long term investors the stock will buoy around.
If you are invested in the stock why do you care what it does day to day? Apple is tremendously under valued at this price, on a simple cash flow basis it is selling at about .7 to fair price.
Apple's price target is $159 based entirely on its metrics. I laid out how above. Icahn is very aggressive but I assume he is adding in the cash on the balance sheet, which I think is misleading for a growth investment.
FCF 2 yr avg: $59B
Growth rate 5 yr est: 13.95%
Total Equity: $125,677M
Dilluted Shares: 5,773,099
((FCF * Growth) + (Shareholder Equity) *.8) / Dilluted Shares = $159
Price : Value = .70
Applying an 80% shareholder equity value, and using two year FCF average, which arguably lessens the FCF as year one is less than last year...
Last eight quarter FCF:
12,899 16,605 30,457 9,390 7,825 12,051 20,626 7,601 = 2 yr avg 58,700
Risk Free Rate 2%
Market Risk Prem 6% (10 yr avg)
Tax Rate 26.2%
After Tax COD 1.84%
Long Term Debt 47.4B
IC Market 689B
IC Book 176.6B
Apple is exceptionally undervalued (even if there was 0% growth in revenues). Cheap
I still have a 4S, but I plan to upgrade to the 6S. You think I am alone in this regard? I don't think I have one friend who has the IPhone 6. And yet, the revenues year over year just keep substantially increasing.
If you think IPhone sales have leveled off, you simply need to study Apple's FCF to see you couldn't be more wrong.
I'd wager you through money around will nilly (likely in put derivatives) thinking you were going to hit it big today...you are losing and as a result the Apple message board gets to listen to your endless whining.
Do you understand what that means? The reason for the drop is a drop in retained earnings, which relates to their dividend. Apple is loaded with investable cash so, a drop in what they don't use to pay dividends or debt is of no substance to Apple's balance sheet whatsoever.
For a company this size Apple's balance sheet in every aspect is a dream come true. They have rouhly 177B in invested capital which has added roughly 470B in market value.
You are not understanding what you are reading, this isn't a reason to sell the stock, it is a reason to buy and hold it.
If you sold this morning, you should be legally obligated to buy Certificates of Deposit the rest of your life. Apple's FCF is so absurdly high any fool that sold at the prices you saw this morning has the aptitude of a toad.
Oh? At one point, Motorola was worth more than Apple and its trailing earnings and "PE" were better as well. It eventually was purchased by Google for $300M.
When you want to "educate" people, make sure you have a clue what you are talking about first so you don't look so uttlerly ignorant when you click Post.
That's the equivalent of saying a car that weighs 1000 lbs is worth the same as every other car that weighs 1000 lbs simply because they both weigh 1000 lbs.
You have no idea what you are doing kenji. You are absolutely clueless. Comparing a company to the human body...good lord I think I have heard it all now
Oh yes, when the sky turns orange and pigs fly planes to Mars "It's gonna end bad for longs in Amazon..."
Hey I have a riddle for you genius... If there aren't any earnings now what is "supporting" it now?
The fact you think 'earnings' are how you properly value a company tells me you have no idea what you are doing.
You think the collective knowledge of all the Amazon employees has no value whatsoever? What do you think other corporations would pay to bring those people on-board their own companies? Do you think 'earnings' decipher what the top technology engineer at Amazon is worth in value? What about 4,000 engineers? 5000?
You'd think you fools who consistently crow "earnings, earnings earnings" would learn something as simple as what i just highlighted. But you don't...you are too ignorant in your own grandiose perceptions of yourselves to realize you have no idea what you are doing.
Enjoy your 'earnings' focus...amateur
I guess all those collective minds at Amazon are pretty much worthless to you...because it is all about this magical "PE Ratio"?
Let me give you some advice amateur, if you don't know how to conduct basic financial valuations other than the average third grade level you should probably stop throwing your money around like it grows on trees.