“All the news today is about Apple (AAPL) clearing $300,” Stone Fox Capital writes for Seeking Alpha. “Okay, maybe just the financial news, because of the heroic rescue of the trapped Chilean miners. It’s amazing though that the financial media still becomes fascinated with these psychological numbers. What does $300 really mean?”
“Keep an eye out for when AAPL hits the size wall, but until then the stock remains incredibly cheap for their growth rate,” Stone Fox writes. “The market correctly understands that being a large company, growth can’t be sustained for ever, but for now AAPL will continue generating huge cash flows, reminding us of another benefit to buying the stock. A huge horde of cash and strong cash flow greatly reduces the enterprise value of the company.”
Stone Fox writes, “Ignore the stock price and pay attention to the value. AAPL remains cheap at $300+.”
Full article here.