Oliver Pursche writes for Forbes,”What if I told you I wanted you to buy shares in a company as follows: The most profitable company in the United States; trading at a discount to the S&P 500 (14.0x versus 9.2x); with a higher dividend yield than the S&P 500 (2.7% versus 2.03% — and being raised to above 3% after the dividend hike announcement); growing faster than the consensus forecast for the S&P 500; and, cash sitting on the books that represents 38% of the share price.”
“If you were looking for long term growth would you buy this stock? Likely,” Pursche writes. “Be honest, if I then told you it was Apple, would you still buy it? As far as I can tell, approximately half of all investors wouldn’t. Why? Because it’s Apple. And that my friends, is the issue. But since it’s the only one there is, and it doesn’t constitute a reason, really, for the rest of us, there’s a tremendous opportunity.”
Read more in the full article here.
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Apple’s foreign cash hoard piles up: $54 billion and rapidly growing – January 11, 2012
Senator John McCain eyes Apple’s $54 billion overseas cash pile – November 3, 2011
Google joins Apple in push for U.S. repatriation tax holiday – October 3, 2011
Apple lobbies Obama for tax holiday, wants to bring overseas bounty home – August 24, 2011
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Ever watch Jurassic Park, the first one that was directed by Steven Spielberg? Do you see how the dinosaurs group together and stampede when T-Rex appears on the scene? Wall Street is a bit like that. You have the T-Rexes like Goldman Sachs & JP Morgan and then you have the rest of the herbivorous duckbill dinosaurs wandering around the landscape until a T-Rex appears over the horizon. Then you get a stampede.
WS operates by herd instinct. If WS operated on fully rational terms Amazon would be a penny stock by now. Stemming the tide is like Moses parting the Red Sea. And we know there’s only one Jesus at Apple and his name is not Tim Cook.
Yes, that would be Jesús Ramírez, the head gardener at 1 Infinite Loop.
LOL, BLN talking about rational behavior!?!
Wall Street might own the watches. But the patient investor owns the time.
It is frustrating and often a fool’s errand for an ordinary investor to try outmaneuvering Wall Street in the short term. But over the long term, the patient small investor can wait out Wall Street’s games.
If you own a stock like Appe that pays an above average dividend (and I refer to the new dividend increase), reinvest the dividends. That is crucial. Than wait. Let all the hype, outright lies, misinformation and hatred roll down your back. Ignore it. You know more about Apple than most analysts and all pundits. Use that knowledge.
Over a number of years, Apple will grow significantly, your reinvested dividends will dramatically compound the value of your investment, and you will be the winner. That is how you beat the street at its own game.
A splendid aphorism, on line one. Also, nice demolition of the pundits. OS that you, Obi-wan?
“Is” that you.
Apple: not perfect. Self: less so.
At some point the Apple stock manipulation pendulum has to swing from “Sell” to “Buy”
That’s the reason they’re shouting “sell” . . . To manipulate the market before they buy.
Just don’t buy it if you think the shares are suddenly going to leap towards heaven. With the next iPhone due six months from now, be concerned if the stock might drop further than it is now until that time. Buy if you like the dividends because you’ll be sure to get them. I don’t know if there’s really an iRadio coming but that might give a minor boost to the share price if there is such a service. Right now, Apple is a severely tainted stock, so really, what’s the rush to buy it. Don’t think it’s at some “bottom” just because it’s hovering around the $400 mark. It could just as easily be at $350 in a week. If other stocks are doing well, the hedge funds will just pull more money from Apple to buy those other stocks. Netflix will probably go up $50 more before Apple moves up a measly $10. Play the favorites.
And the dividinds keep.rolling in!
If you buy shares to churn, look at the weekly prices. If you buy to invest, look at the long run.
Say from about $20 a share to $408 isn’t so bad (plus the splits)… What are your motives and motivation for making any investment?
By the way, churning is unethical…
😛
When you consider that 98% of the press about Apple is speculative nonsense by “armchair experts”, and then consider how much is published about Apple, is it any wonder that the stock price bounces up and down like a yoyo?
I would rather spending time looking at Marissa Mayer in a red dress sitting on a red ball than trying to decipher Wall Street.
I agree.
Even with the rally up to 705 Apple was trading discount I believe. Of course now every one thinks that 700 was a ridiculous height for the stock to reach but there were many good arguments made then why the stock would to even higher. And when I listened to what people said about the stock even at 700 was that it was cheap. Apple had a parabolic move but still didn’t get the love it deserved. It wasn’t very expensive at that level. Of course now everyone takes the same argument that they had when Apple was going up and turning them around using them against Apple. I mean, it depends on what you want, what you are. Sentiment. You can make both a Bullish and a Bearish case for Apple. Of course since most people on Wall Street don’t want to be wrong or have a back bone everyone was scrambling to lower estimates and go bearish on Apple when the stock was going lower. It’s really amusing and at the same time.