“Reader Travis Lewis points out that after Monday’s $20.41 (5.8%) drop, Apple’s (AAPL) price-to-earnings ratio has fallen below the low point set on Jan. 20, 2009 — six days after Steve Jobs announced his second medical leave — when the stock closed at $78.20,” Philip Elmer-DeWitt reports for Fortune.
“In other words, Apple at $353.21 (which is where it closed Monday) is cheaper than Apple at $78.20 (where it closed on Jan. 20, 2009).,” P.E.D. reports.
Full article here.
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If anybody has any cheap $353.21 shares for sale I’ll gladly pay the higher $78.20 for them.
I’ll take what he can’t handle.
+1000
Mega Like
If you don’t understand what he means by ‘cheap’ there you don’t have any business owning stocks.
cheap |CHēp|
adjective
(of an item for sale) low in price; worth more than its cost: they bought some cheap fruit | local buses were reliable and cheap.
• charging low prices: a cheap restaurant.
• inexpensive because of inferior quality: cheap, shoddy goods.
• informal miserly; stingy: she’s too cheap to send me a postcard.
• of little worth because achieved in a discreditable way requiring little effort: her moment of cheap triumph.
• deserving of contempt: a cheap trick.
From the Apple Dictionary App
Hey idiot, you quoted it: “Worth more than it costs.”
And you misquoted it.
That was good!
I’d say it’s only about $27,500 cheaper for a 100 share bundle.
Good point Travis, good point.
Good report Philip, good report.
Dear Apple:
Instead of concentrating on whether AAPL is unreasonably cheap, consider how some of the others are faring right now. I’d say, this is the best time for the Apple to go out bargain hunting, starting with Dolbe, Motorola, AMD (for the Dresden foundries if nothing else), even RIM. AAPL will blossom ten folds come October quarterly report in anticipation.
Apple buy tech companies that can add to their current skill set. Dolby, Moto, AMD and RIM do not really fit the bill since most of their tech is old.
A lot of people esp. brokers want Apple to spend their cash base. That’s because they want to money to add to the liquidity in the market. It’s just pure greed on their part.
Apple as usual are doing what they want to do. Using the cash to guarantee component availability and cost is extremely smart and very effective. Way smarter and more effective than dumping the cash on has been companies.
I’m not corporate strategist; I’m a lowly engineer. My humble understanding is, sometimes you make acquisitions not based on how it may enhance you or your culture, but how the move may block your opposition from gaining strength. Motorola for instance, has been doing this mobile thingy for a while now and has some patents that Apple may or may not have been a licensee. Google acquiring them would not necessarily threat Apple’s current status but it would certainly strengthen Google’s position overnight in their patent portfolio. Come next hardware refresh or a new product introduction, Apple may find itself in a bit of pickle knocking on Google’s door for a new license. RIM appears to be, somewhat, in a similar boat.
Dolby just got dumped by Windows 8, and is down 18% overnight. I’d say it’s a good buy outright.
Anyway, what Apple really needs and has been on the prowl for only Apple and/or Mr. Jobs know best; I don’t presume to know nor guess well. But seems to me, this unexpected market tumble may afford a good bargain hunt.
Apple is getting real close to Exxon as world’s largest company. Only TWO billion separating them.
No it is not.
It has a lower price/earnings ratio, but still costs more. Anyone stupid enough to say it is cheaper is in denial of the math.
It’s 275.01 more expensive. I sold quite a few Apple shares the day it peaked over $400 that I bought years ago for less than $10/share (pre 2-1 split).
Haven’t paid more than $320 for Apple and don’t plan on it.
Like most progressives, you cannot tell the difference between price and value.
It is your funny math and rejection of the science of economics that is destroying this country.
And no, you never owned ant stock, let alone, bought it below $10.
anyone care to mention aapl is a little step before becoming the worlds biggest company 😀