“Bears swiping at Apple’s stock price have created a profitable entry point. The time is ripe for hesitant investors to become shareholders,” Marie Palumbo writes for The Motley Fool. “Apple is dedicated to expanding shareholder value, here’s how.”
• A moat of protection
• New products
• Share repurchases
“The Oracle of Omaha once said ‘Be greedy when others are fearful.’ With the stock market surging ahead, it won’t be long before Apple catches up,” Palumbo writes.
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Palumbo writes, “Apple’s board and management are committed to creating long-term value. Through multiple moats of protection, new products, and a share repurchase program, shareholders will be rewarded. Now is the time to buy. ”
Read more in the full article here.
Let’s hope so, crossing my fingers!. If AAPL 500 I’d be happy very happy.
Crossing my fingers.
This guidance from Palumbo/TMF is a bit late, IMO, but i agree that AAPL should pay off nicely over the next few years. In the longer term, Apple and others will have to deal with a saturated smartphone market and lower margins. High rates of growth cannot last forever. Fortunately, Apple has a diverse product portfolio and the culture/foundation to continue developing new and exciting products for years to come.
It is short sighted to worry about smart phone market saturation, IMHO. Smart phones are not commodities. They are in a state of flux. The iPhone is just six years old. Ten years out we won’t recognize the iPhone. Computational power and storage will be huge. The network speed will likely increase a lot. Battery life will be extended. Most importantly, the social aspects of the iPhone will likely be extended a lot. By that I mean it will takeover payments for purchases, it will store your insurance cards, health insurance cards, drivers license, etc.
I don’t mean to go off on a tangent about the future of the iPhone. My point is that this is the starting point of this industry. The market is not even close to being mature and saturated.
Nothing annoys me more than share repurchase programs.
Why?
It takes shares “off the market,” making the shares you own represent a greater portion of Apple (because there are fewer shares outstanding).
It’s not a matter of fear with Apple. It appears to be a matter of indifference for investors. Look at companies like Netflix, Google and Amazon. They just continue to climb like rockets. Everything they do earns shareholders money. Everything Apple tries to do only helps drive the stock down further. Why the hell would anyone looking for quick profits purchase Apple? Tim Cook isn’t doing anything to excite investors. Apple is sitting on a mountain of cash and the stock is going nowhere.
I don’t care if it takes time for Apple to start moving again. By the end of the year I expect the hedge funds to be back in. I’ve got my hands on some spare cash and will soon be buying more shares this week. I’m certainly happy with those dividends and to me it’s like a bonus paycheck every quarter. I think if Apple gets a China Mobile contract, releases newer iPhones and adds some services to iTunes, I’ll be sitting pretty no matter how much Wall Street screws over Apple shareholders. However, I honestly think Apple should be able to do more with their wealth. Why can’t Apple start bidding for some government contracts like Amazon and IBM? Give investors some confidence that Apple has a future and it might help boost the P/E a slight amount. All I see from Apple is a rather lax attitude at this point in time considering their pile of cash. Since Apple hasn’t announced any specific big plans for the future, what else can I go by.
follow the patents and you will see apple future. It is not in smartphones…thats done.
What then?
What?
it doesn’t matter whether repurchase program works or not because I’ve already done with apple. it doesn’t make you rich for god sake. do you want to be rich? try something else out.
I would really want to see them invest 60 billion in new products not wasting it on a stupid buy back.