“I’m a lifelong Mac user, but my ardor for Apple’s (Nasdaq: AAPL) stock has been cool. It just always looked too expensive, way too hot to handle,” Alyce Lomax writes for The Motley Fool. “Times have changed, though, and Apple’s increasingly looking like a red-hot stock idea. (Pardon me while I dig around the Necco Sweethearts for the ‘Awesome’ Conversation Heart.)”
Lomax writes, “Apple shares have fallen more than 30% since the start of the new year, and they’re well below their 52-week high of $202.96. Apple is trading at just 28 times trailing earnings, and 21 times forward earnings — quite uncharacteristic, considering the company’s growth rates. (It’s still expected to deliver 20%-plus annual growth over the next five years, and it’s not too hard to imagine Apple exceeding such expectations, given its strong brand and track record of innovation.)”
Lomax writes, “Plus, Apple’s loaded with cash. It’s got $18.45 billion, or a little more than $20 per share, and no long-term debt. In these troubled times, zero debt is a doubly sweet concept.”
Much more here.
We’ll briefly address the negatives that you’ll find presented in the full article:
• Is iPod growth slowing or is it really transitioning into a higher margin multi-touch mobile platform?
• Does Apple really care about Amazon encroaching on their barely-above-break-even iTunes Store when all it will do is help sell more iPods and iPhones with which Apple actually profits?
• Is the MacBook Air really “underwhelming,” Alice or – as with the previous two points – are you just not quite getting it?
The other “negatives” Lomax presents (Jobs’ ego and last year’s iPhone price cut/store credit) are meaningless old canards.