“In my humble opinion, as an incessant bargain hunter, I believe that the market is under-appreciating Apple’s unrivaled war chest,” De Oliveira writes. “Apple’s Q1 2018 results showed it having a net cash position of $163 billion – roughly speaking 20% of Apple’s market cap made up of cash. Furthermore, CFO Luca Maestri was resolute and unshakable on its earnings call that Apple would be a huge beneficiary of the recently enacted U.S. tax law, and that it would seek to repatriate its huge overseas cash.”
“Apple is that rare beast that should not be available in a fully efficient market – yet here it is,” De Oliveira writes. “Apple does not need much in the way of growth to deliver shareholders with a rewarding investment. In fact, even with close to nil growth, simply by keeping Apple’s top line steady and using some of its cash to repurchase its own shares, its shareholders will be rewarded… [Yet] Apple has numerous underappreciated opportunities for growth. Such as its newly found direction of moving away from being a hardware seller to an asset-light business model. Apple has of late migrated more towards a service business, which has started to show on its improved margins. And here is the thing, when I look at one the most valuable companies in the world, to think that it is still growing, I find this stupefying.”
Read more in the full article here.
MacDailyNews Take: AAPL is a rare beast, indeed.
Long-term holders have the potential to realize significant returns on their investments.
[Attribution: Apple 3.0. Thanks to MacDailyNews Reader “Dan K.” for the heads up.]