“I’m not changing my stance on Apple [AAPL],” Cody Willard writes for MarketWatch.
“I’m holding onto a large common stock position with huge gains that I’ve owned for years and I’m sitting on losses from the recent call options I’d scaled into,” Willard writes. “I do expect that Apple can and will deliver nearly $60 in earnings this year, and I expect that the market will pay 10X those earnings, plus net cash, which would put the stock up near $750 or $800. And I still expect that we’ll see a $1,000 price in AAPL sometime in 2014 or 2015.”
Willard writes, “I think the retail shareholders and mindless long money managers just got complacent with AAPL and that we’re still shaking the people who bought AAPL in 2012 out and that could take a while longer. The multiple will be supported by the cash, the yield and the giant earnings that will continue for the next few quarters, so I still think it goes higher eventually.”
Read more in the full article here.
First optimistic report for ages!
There are some interesting comments under Cody’s article. It appears the Asian money theme is catching on.
I like his strategy. I like it a lot 😉
That’s a long way off to make such a call. The hedge funds own the market. They’ll go to whatever company they can make quick money from. I expect Apple’s P/E to drop down into the low 9s with the continued ‘carrier subsidy loss’ scare articles. That’s about the most powerful anti-iPhone message out there. Apple has some control over shrinking margins, but Apple can’t offset that particular investor fear with anything.
That’s a pretty ballsy prediction.
We live in the most debt-infested country in the world. U.S jobs reports are dismal. The number of people not working recently hit its highest level ever. GDP contracted for the first time in 3.5 years. Institutions, not private citizens are buying homes. 10.7 million homes still have negative equity.
With the race to a $20 trillion national debt and a debt-to-GDP multiple of 125% in full swing, I’m in the camp that’s betting the worst is yet to come.