“When Steve Jobs passed away last month, I wrote that Apple stock was due for a price haircut,” Dana Blankenhorn writes for Seeking Alpha.
“I was widely criticized for that, especially as the price of the stock rose more than 10% in the week after, peaking at $426. Fans of the late Apple co-founder and his products pounded the table with my prediction and pounded the table for the stock,” Blankenhorn writes. “But now, after a less-than-thrilling earnings report, Apple shares have fallen back to Earth. At the current PE multiple of 13.71, they’re priced nearly at par with Matthews International (MATW), which is in the business of producing marketing materials and (interesting) caskets and tombstones.”
MacDailyNews Take: Less-than-thrilling earnings = Record quarterly revenue of $28.27 billion and record quarterly net profit of $6.62 billion, or $7.05 per diluted share. In their last “less-than-thrilling” quarter, Apple sold 17.07 million iPhones in the quarter, representing 21 percent unit growth over the year-ago quarter, while the world waited for the next-gen iPhone no less. Apple also sold 11.12 million iPads during the quarter, a 166 percent unit increase over the year-ago quarter. And Apple sold a record 4.89 million Macs during the quarter, a 26 percent unit increase over the year-ago quarter.
Blankenhorn continues, “At these levels AAPL is a screaming buy. Time for the post-Jobs haircut to end until there is something real to justify it.”
Read more in the full article here.
[Thanks to MacDailyNews Reader “Opportun” for the heads up.]