Yared: 3 reasons to buy Apple shares now

“So we just got a nice $10 correction on Apple (AAPL). Maybe some folks were disappointed that Steve Jobs didn’t do backflips at the Apple Worldwide Developers Conference. Whatever it was, Apple is back from its frothy highs, and now we can start talking again about good reasons to buy the stock. I have three for you, and none of them involves the iPhone,” Georges Yared writes for The Motley Fool.

1. Apple’s Safari Web browser for Windows
2. iPod market nowhere near saturation
3. Apple’s incredibly performing and growing network of retail stores

In addition, Yared reports, “The several portfolio managers I regularly talk to from a previous life are still buying the stock for the long term. Five of them in particular have $200-$225 price targets for calendar 2008.”

Full article here.

32 Comments

  1. Retract this news!!!!

    This should be top secret stuff for Applelites only! how else are we going to be able to by first generation releases from Apple inc. if the World and his relations are being let in on the secret?

    Sell! Sell! Seeeellllll is what I want to hear!

  2. > The several portfolio managers I regularly talk to from a previous life are still buying the stock for the long term.

    In the “long term,” Apple investors will profit nicely whether they bought the stock today, last Friday, last year, or last decade.

  3. Not sure about this. Apple’s market valuation is already over $100 million. Not sure how much higher it can go. For comparison, a gigantic monopoly like AT&T that (arguably illegally) owns the whole world of communications is valued at $250 million. It’s not like Apple’s shares can keep going up infinitely. They’ll never be bigger than AT&T.

  4. MacBill,

    I believe that you are having a problem with your keyboard…. your ‘b’ is getting replaced with an ‘m’. As is billion not million.

    You really did discredit your opion by your obvious lack of what companies are worth.

  5. I think that M=B.

    Otherwise, I think that Apple is given the respect it is due. Comparing other companies isn’t always useful. Take a look at Dell’s revenue– it’s far more than Apple’s, but Apple’s net worth is much greater. To some, that may be surprising, but not to me.

  6. MacBill:

    “Apple will never be worth more than AT&T.” That will make a great quote. Do you want to lay any money on it? “Never” implies the odds are worse than 1,000,000 to 1 against it happening. I’ll give you much better than that: 10 to 1 against. If Apple is not worth more than AT&T by 2013, I pay you $100. If it is, you pay me $1000. This should be a great deal from your perspective.

  7. @ Macbill
    Yeah, wer’e supposed to listen to your ignorant valuation opinions about Apple and other companies. You can not even differentiate BILLIONS from millions. Your parents really wasted their money on your education (if any).

  8. MacBill,

    M’s and B’s aside, and leaving out the relatively tiresome spammyness of your posts in general, I’d like to know… How big COULD it get? What is the limiting factor, other than you Financial Relativistic model? MSFT, for instance, has a market cap of around 300 billion, and has been higher. All the money any they don’t even sell anything you can touch (except for great mice and the odd Zune or two) just software. So how big do you think Apple could be, and by what logic do you come to that conclusion?

    Personally, considering that Apple has about 6% of the overall PC market, there is plenty of room for growth there. But the desktop PC market isn’t really where the growth is anyway, it’s in mobiles. Apple has fared much better with their laptops, taking something like 12 percent in a good quarter. And of course, the MP3 player is owned by Apple.

    So how will the iPhone fit into this? You couls consider it a computer that fits between the MacBook and the iPod. This may be kind of a stretch, but you have to remember the mobile market is a billion unit per-year endeavor, and looking at it in terms of The NExt Big Phone alone, there is little doubt the iPhone will dominate this summer and into the Christmas season. It’s simply too late for even the best competitors to steal the iPhones thunder at this point. Who would do it? Microsoft? If Nokia and RIM can’t compete, what in the world would make us believe that Microsoft could?

    So lets say Apple gets their 1 percent. That’s 10 million phones. Great! But in light of their market dominance in these other areas, and the significant buzz the product is generating, would it be too far fetched to wager on, say, 10 percent?

    100 million phones. Assume an average price of $550, and that’s 55 billion dollars in revenue, or about half of what the company is worth right now.

    From one product line.

    Honestly… I think it’s going to be a long, long way to the top.

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