“Here’s the bull case (#longread) on Apple for those whose faith is shaken,” Bruce Upbin reports for Forbes. “It was largely written by Mitch Rubin, a veteran growth fund manager who has held the shares in his RiverPark Large Growth and RiverPark Long/Short Opportunity funds’ top ten for years. Like many of us who have owned it for a while (I own some through my wife’s brokerage account), he’s had a great run but is sitting on a 35% hit from the fall highs. The hyperbole in the media (Forbes is just as guilty) is turned to 11. Time to turn to facts.”
“[For the tl;dr crowd] Apple is the cheapest growth stock you will ever own, and will generate more cash (on top of its current cash) than its entire enterprise value over the next three years,” Upbin reports. “What growth buyer wouldn’t want a cheap stock? What value buyer doesn’t want a company that materially grows cash? What contrarian investor doesn’t want a stock that’s hated? As Rubin says, ‘Nirvana.'”
Full article here.
[Thanks to MacDailyNews Reader “David E.” for the heads up.]
the pe is 10.35 but that could get hammered into the ground to 5 or 6 if the street thinks that their growth is slowing
they could post growth of 15-20% for the next several quarters and still have a stale stock price
Sure. Good prospect for a value stock going forward. The dividend will probably be increased very soon. Lots of cash. Still plenty of room to grow but I’d be careful if I were expecting a big growth stock like it has been. That would be hard to match for anyone. Even Apple. But it will see its moments of big gains (like many others). Next time try to reap those rewards when they are available. Learn to profit from your investments. Learn to take some or all off the table. Never be greedy. Learn from this last drop.
It sounds like he’s trying to candy-coat a turd. There’s no way in the world Google shares should be worth $300 more a share than Apple. No freaking way at all. Apple’s growth has been just as high as Google’s if not higher over the past few years and thrown in with a shrinking P/E, Apple easily deserves to have a higher share price than $450. I’m not talking some unrealistic $900.
Apple has been declared a no-growth stock by Wall Street and that’s the way it looks. Wall Street is making up all sorts of weird valuations for companies that are completely inconsistent to fundamentals and past performance. Tell me if I’m wrong based on these numbers.
Apple vs Google revenue growth:
http://www.wolframalpha.com/input/?i=apple%27s+revenue+growth+from+2008+to+2012
http://www.wolframalpha.com/input/?i=google%27s+revenue+growth+from+2008+to+2012
How can there be such a huge share price and P/E gap between the two companies and that’s not even counting reserve cash. If Google is worth $750, then Apple should certainly be worth $650 to $700.