Cody Willard: Post-election ugly; buy Apple cheap

“Ugly day post-election. Oh, and there’s panic about the EU debt crisis in the headlines again,” Cody Willard writes for MarketWatch. “Shocker, eh?”

“The Dow Jones Industrial Average [DJIA -2.15%] opened down 100-plus and has faded another 200 since then. Apple’s [AAPL -4.09%] being a high-beta version of the market, as I’d surmised it would be until we get some clarity on holiday demand for its wares,” Willard writes. “Here’s a different way of looking at Apple altogether to help analyze the stock from a variant perspective. That is, divide everything you know about Apple by 100 and see what it looks like.”

Willard writes, “Apple’s stock is at $570, so picture it at $5.70 instead. Apple’s got $130 billion, or about $130/share net cash on the balance sheet, so call it $1.3 billion and $1.30/share net cash. Apple’s going to earn more than $60/share next year, so call it 60 cents instead. So if I told you I found a company that is one of two that is totally dominating the two fastest growing and largest end markets (smartphones and tablets) on the entire planet Earth, with more than a $1.30 in net cash per share while earning more than 60 cents a share and adding another 50-70 cents per share in net cash to the balance sheet over the next twelve months and that the stock is trading for $5.70, would you think that stock would be a buy?”

Read more in the full article here.

Related articles:
U.S. stocks deeply in the red in post-election selloff – November 7, 2012
Amidst broader market sell off, Apple shares fall 20 percent from peak – November 7, 2012
Four more years of Obama gets chilly Wall Street reception: Stocks begin in the red; Apple down – November 7, 2012


  1. Apple’s stock continues its free fall. This is beyond a bloodbath now and it is ALL due exclusively to the appearance of SURFACE. Apple has no response to SURFACE and must be scrambling like hell to update the iPad now. This is going to get a LOT worse before it gets better.

      1. Just remember that the ZunePad RT already has MS Office on it, a FULL-SIZE USB port and expandable memory to 128 GB. The iPad has none of those things that corporations love so dearly. Meanwhile, Tim Cook is sleep-walking the parapet with his eyes wide shut. So, what makes you think the joker is actually being sarcastic.


    1. Where exactly does surface excel s iPad 4? Surface – No LTE, slower, bloated Operating System/Apps. No need USB and SD memory if you’ve got full time cloud access. No need Office, if you have Pages and Numbers. No need the $130 key board cover when their many great ones at 1/2 the cost or you can use voice recognition input which has a high degree of accuracy.

    2. Apple doesn’t need a response for Surface. It’s going to be D.O.A. like all of Microsoft’s products in 3 months. There are a lot of Tablet computers on the market already that don’t sell and Microsoft just added another one. Did I hear of any 3 day sales records for Surface, nope. To expensive, takes have of the storage capacity just for it’s operating system, has no applications what’s so ever. Screen is horrible and like I said before. There are hundreds of tablet computers already on the market.

    1. God. Don’t you people ever take a day off? You just got your asses handed to you but you’re still at it. Racial insults included.
      The stock market today is down because of fears in Europe. The same Europe that followed the GOP favored “severe austerity without stimulus” ideas. As a result, Europe is in a double dip recession, unemployment is growing and economies are shrinking. Whereas the US, following Obama’s policies, has unemployment shrinking and an economy that is growing. And Europe is now, belatedly, starting to follow the stimulus model to emulate the US.
      When on earth will you rabid republicans learn to do some research??? Did you notice that stocks were up significantly yesterday, despite all the projections that Obama would win??
      And the classless racist insult thing destroys any credibility you might have had anyway.

      1. Wow. Delusion much? So this is about EU concerns that have been concerns for years now? How do you explain that we lost more value than the EU markets? Amazing coincidences.

        I have an idea, try running your personal or business finances with the genius stimulus model you love so much. Spend your way out of debt and tell us how that goes.

        1. Pocketrash and Thelonious: Do your damn research. Europe is a trading day different to the US. The concerns that arose there during the European day affect the US market as soon as it opens. You truly are dumb fucks.
          And you still haven’t worked out that businesses are different to countries, have you?
          Thelonious – your comments in particular are egregious. I understand you repubs are upset and getting rejected by the country for the second time in a row. But you’re now showing your true utter lack of class.

      2. As far as racial insults, the entire Obama administration has been a racial insult.

        In the speech that propelled the President into the limelight, he stated that there is no black America, no White America, no Gay America, or straight America. Yet sadly he’s gone on to take advantage of such perceptions and separate us even more along those lines. A leader doesn’t jump on the publicity bandwagon and exploit a racially charged incident by suggesting that the death of a man was due to his color. A leader asks for people to remain calm until all the facts are in. A leader doesn’t throw gasoline on the fire by saying, “If I had a son.. he’d look like Trayvon Martin.” That is something a divisive, opportunistic, duplicitous, self interested politician would say.

        If being divisive isn’t bad enough, the condescending nature that he’s approached African Americans with has been despicable. While African Americans voted in droves for the President the first time, and this time, the only elevation African-Americans experienced while under the Obama administration has been to the top of the unemployment lists, more of our wealth vanishing than all others. Don’t talk about “racial insults.” You know not of what you speak.

  2. Tough day in the stock market. AAPL Down $22. Ouch! I’m hearing $525 for the next resistance. I hope not. I’ve been dipping my toe in here lately and I’d like to see it go up not down. I’m afraid the election and capital gains taxes aren’t helping any. Sure, it should go up after the first of the year but that’s a long way off. The last five weeks havef been rough for a lot of investors. Especially those who didn’t take profit at the top. AAPL investors could use a little love. How about a Santa Claus rally!

    1. Never dip your Apple-testing toe into a pond filled with Wall Street piranhas unless you prefer to have only nine toes. You do realize that Santa hocked his reindeer to buy Apple stock because Andy Zaky said Apple was on its way up after bottoming at $610. Don’t count on Santa to come to your rescue unless Mrs. Claus decides to pull his sled.

  3. Hopefully the prodigal President won’t be able to accomplish anything too damaging. He’s facing a Republican House of Representatives, which should be enough gridlock to prevent us from completely becoming Cuba.

    Republicans held Clinton in check and to this day he’s taking credit for it. Which is fine by me.

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