“I am an avid believer that among large caps, Apple offers investors one of the best opportunities to profit,” Michael Wiggins De Oliveira writes for Seeking Alpha. “Furthermore, Apple does not need much in the way of growth to truly reward long-term shareholders.”
“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.]
Apple, please do something with the cash like designing a new Mac Pro, Mac mini, Cinema Display, etc…
It would be nice if Apple would go back to designing their own routers. My 4th Gen 2TB Time Capsule is getting old. They were really some fine routers that Apple sold. I think the drive in mine is starting to struggle a bit after years of use. I wish I could take it to some repair place to reliably get the drive replaced.
amen, to that thought
I was drawn to AAPL long ago, when the mac lineup was boring and beige,…
then steve came back, gave computers a whole new look, made OS 9 “STABLE” AND taught people to “think different”
what AAPL needs to do is go retro,… excite users an w/ old school lap computer that are somewhat upgradeable w/ two 2.5″ SATA sold state drives, upgradeable RAM and various ports (like the now discontinued 2016 13-inch non-Retina MacBook Pro) BUT w/ a rental screen AND the latest i9 processor,…
this way it won’t be too difficult to also make a mac mini version as well
I don’t want or need the slimmest, lightest fashionable form factor housing,… what happened to ‘It just works’?
So what’s Apple’s total capitalisation now? at USD$178/share, must be v close to USD$1T surely?
Just about $904B according to Yahoo. Still a ways to go. I believe the target share price is around $192 to reach $1T if the share count doesn’t decrease.
Why are they always bringing up this point? Apple stays undervalued because investors aren’t willing to pay for the stock like they would any FANG stocks. Big investors would rather pay for Facebook stock even when the CEO is put on the hot-seat by the Feds. I’m not going to concern myself with Apple being under-valued or under-appreciated because that’s the way it’s always going to be. Just give me higher dividends, if that’s the case.
I see the way Wall Street appreciates Netflix due to subscriber growth and I say to myself, “Hey, Apple could do something like that if it really wanted to.” Apple could at least offer some competition to Netflix if there really is that much low-hanging fruit to be taken. Everyone says Apple’s iPhone business is in a rut due to market saturation, so why doesn’t Apple get into a business that supposedly has unlimited growth potential? That’s what they keep saying about Netflix. The sky is the limit for them.
That type of business seems like it would be just the ticket for Apple’s Services Division growth. Apple could certainly afford to run a business like that and sell hardware at the same time. I’m not saying Apple should try to put Netflix out of business but just take some of the cream, as usual, if there’s that much to be taken. It certainly makes some sense to me.
The wise investor doesn’t reward corporate executives for sitting on cash while 2/3 of the product portfolio rots.
Does it seem to anyone else like Apple is one of those Barbarian kings who conquered nations in his youth but is becoming just a ‘big boned’ lord sitting on his throne and receiving tributes in recent times?
Or maybe the strongest person in the world but lacking the brains to use the body properly?
History repeats. Some scary shit Apple is nowadays. Those anals only base their quote on iphone growth. Manipulation Brats!
you mean the very same war chest they intend to eliminate by going cash neutral?
not very bright, but no wonder goldman sachs is vying to give them guidance on how to get there…. so G/S can then loan them money to do what mr. apple should and could otherwise do on their own, from their own resources.
getting to where i don’t trust the apple brain trust anymore.