Howard Ward, chief investment officer at Gamco Investors, explains why he thinks Apple is a great buying opportunity right now. He speaks on Bloomberg Television’s “Bloomberg Surveillance.”
Apple is the largest holding in my fund. This is a company that’s going to earn about $42 billion dollars this year. That will make it #1 in terms of earnings in the U.S. Exxon will be #2 at about $35 billion. Exxon has 2.4 times the revenues of Apple and sells at 5X EBITDA. Apple sells at 4.4X EBITDA. Exxon’s top line and bottom line have been growing at about a 4% rate, Apple much higher… I think this [pullback] is comparable to buying JP Morgan last spring after they had the big trading loss and the stock was beaten up and it was at $30 a share and now it’s $50, but you have to go against the grain of public sentiment and buy these stocks when they have fallen from grace and this is a great buying opp… I think that next month, we’re going to get an announcement from the company as to how they intend to reallocate some of their cash and I think they will put a floor under the stock at a higher price that is is today.
Direct link to video here.
Captain Obvious, but nice to see the comments being made.
He’s trying to boost his AAPL share price with this statement. I hope it works.
It would be risky to buy Apple shares right before the introduction of the Galaxy S4. If the news media and tech-pundits love it and praise it to high heaven, Apple’s stock will immediately drop as more hedge funds run to buy Google, Amazon, Netflix, Intuitive Surgical, LinkedIn, Facebook or practically anywhere else. Any place where they can possibly get some financial returns. They’re not going to get any from Apple. I don’t suppose many of you realize that even dying Hewlett-Packard has been outperforming Apple by quite a wide margin which may or may not mean something is seriously wrong.
Out performing by whose standards, yours?
Then call me a risk taker, LB, because I recently bought more AAPL. If I had more cash to invest, then I would have bought even more. Good luck with that Google investment…
And the stock falls another percent.
This just in from Barron’s Tech Trader Daily: “By Tiernan Ray
Shares of Apple (AAPL) are spiking higher after trading down all session, currently higher by $4.31, or 1%, at $436.03, on a spike in volume, on no apparent news.” That’s great news!
I just saw the spike a few minutes ago and wonder what rumour is flying around out there?
Key sentence in the beginning of his comment. “Apple is the largest holding in my fund”. He is backpedaling from that point on.