Each and every one of them was touting go pro, tesla, linkedin, etc etc. Cramer went on a rant when apple was half the price about how his kids saw Samsung as cool and apple as masse. The unmitigated gall of these guys to say the opposite with a straight face is criminal.
Why is Disney cheap to some at $90 and apple is rich at 95? The answer is Disney remains overvalued and apple is dirt cheap.
As soon as the fed started taking away the punch bowl 7 years of overvaluation had to correct or a huge bubble would have formed. The move from an S&P multiple of 19 needs to come down to a more reasonable level in a stalled economy with few companies growing double digits. Where this finds a bottom is anyone's guess. Many stocks are in bear territory and many more must enter the same. Apple is in the catbird's seat having already corrected to the bare bone still selling for a 10 multiple with a 2% dividend and obscene cash and cash flow. You simply can sleep well at night buying or holding apple while collecting the dividend and enjoying the billions in buybacks reducing the float.
Apple remains king of the money mountain top.
India has room for lots of growth in apple's iPhone sales.
Is probably the greatest. Think if they followed advice of so many and bought go pro,fitbit or tesla. They'd have squandered billions they now have to pick up bargains.
There's close to 200 million out there who have yet to buy a 6 series phone. If the 7 is anything like what has been leaked apple is a mortal lock to beat their record by double digits.
It is happening right under your eyes. I hope you see it.
That's a big market for a new improved speedy fully modern 4 inch phone.
Please tell me what pe a value stock like apple should have with $40 in cash, a 2% dividend and billions of dollars in projected buybacks. Keep in mind they will make a minimum of $9 for fiscal 2016.
The market, as a whole, got ahead of itself selling for 18 times earnings in a no growth world. Apple was said to have their first yr over yr downturn in iPhone sales in over 5 years. This is a shock to a system that has advertised apple as a growth stock. Some think this means growth that never stalls. Well apple's growth is stalling so some growth investors have panicked. This is short term and nothing for long term investors to fret about.
As for the market,as a whole, there is still room for correction to a multiple somewhere south of 16.
The good part is apple will not be one of the stocks correcting much more because their value is just too great. They are minting cash, buying back shares and paying a 2% dividend. Value investors will be all over them at the PPS.
The best part is long term investors will be in for a double positive as apple resumes growth with the 7 series, new products and the monetization of the many products comprising "other" on the balance sheet.
The first is that the 6 series of iPhones has neutered Samsung and samsung is the only Android user left standing.
The second is Blackberry and its enterprise security advantage is history so where is Enterprise going to go for mobile solutions,Android????
Enterprise growth is not sexy but boy is it lucrative,it just takes time.
The man was the visionary of our time but he was vindictive and inflexible.
More importantly he lacked the diplomatic skill that was needed to get into China.
I have been saying for years that apple should switch to just reporting the total of computing devices sold. They should add all iPods,iPads,watches,laptops,desktops, and iPhones into one bundle and lay that on analysts to chew. If Google can call themselves alphabet and get away with apple can surely put all their devices into a category that makes sense and shows how ubiquitous that have become.
That would unleash an upgrade/switching cycle that could double the stock price.
Tim Cook said the last quarter had their highest number of switchers than ever. There are at least a billion people entering the middle class in China and India alone in the next several years. Apple has about 530 plus million iPhones in the wild upgrading at less than 40% per year. Their base represents only 20% of the total smartphones in the world.
If apple can get 20% of the billion entering the middle class that's 200 million, if they get 5% of the current 80% of smartphone owners to switch that's another 200 million, and if they can increase the upgrade cycle to 50%, just 10% higher, that's another 50 million for a grand total of 450 million which is a doubling of the total iPhones sold in their best year. That adds around $6 in earnings absent any other products growing. With a pe of 15 that's a PPS of 225.
Suddenly the 530 plus million of iPhone owners upgrade at 50 or 60% instead of 40%. A 10 to 20% increase not counting first timers or switchers. Come on man, the big boys get this.
Unleash the apple hounds.