Apple: The truth shall set you free

“No matter what Apple does, the critics still come out,” Bill Maurer writes for Seeking Alpha. “A great iPhone weekend was sullied by channel filling remarks, and Apple will have to prove in a few weeks that it sold a lot of iPhones if it wants to beat expectations. Even when bearish analysts upgrade the name, they still manage to poke some holes regarding Apple.”

“One thing is certain though,” Maurer writes. “Apple is off to a great start in fiscal 2014, and more new product launches are coming soon. Analysts are raising their estimates, and rightfully so. The buyback could even be expanded, depending on your time frame, and the valuation remains low for a premium company. The stalemate in Washington might continue to pressure shares, but once that headwind is eliminated, Apple shares should go back to $500 in short order.”

Maurer writes, “In just a couple of weeks, Apple will have its chance to prove the naysayers wrong again, and that truth shall set it free.”

Read more in the full article here.

[Thanks to MacDailyNews Reader “Fred Mertz” for the heads up.]

19 Comments

      1. A Sliver!!! A SLIVER!!!!! You’ve got to be kidding me ‘whogastin’, some of us own wafer thin shares!!! and even then, those wafer thin shares look like giant slivers compared to others shares. My wafer thin shares almost resist gravity, GRAVITY I TELL YOU!!! If those dumb fool anal ysts stopped anal ising for just one day, my shares would experience no turbulence and therefor hopefully sail down like a speck of dust to the ground by the end of the day if not two days!!! Then maybe, just maybe, I could do something useful with them!
        This was not a thought EN!

    1. That cannot happen, Bizlaw. The money that Apple uses for stock buy backs are assets of the company and the property of the shareholders. Apple is buying back shares to counteract dilution of ownership resulting from the issuance of shares to employees and board members. A much larger buy back would be required to actually eliminate a substantial percentage of outstanding shares. Even then, ownership would simply be more concentrated. Apple cannot buy itself back and go private. It would take external funds – and a whole lot of it, likely $700B or more – to attempt a takeover.

      This has been addressed multiple times on this forum. Please, let’s stop bringing up this topic. It has no basis in reality.

      1. Thank you Mel. I too tire of hearing the “private” remarks constantly. I understand that people mean well but it just shows the lack of understanding of the business world and in particular the stock market by almost all who post here. That is so often glaringly obvious! The stock market is difficult to navigate but can at least be understood from a distance if one spends enough time educating one’s self. Spending time posting here does little to enrich a persons life. Go to school. Read a book. Listen. Learn.

    2. Na, I think Apple should just ignore the analysts and Wall Steeters and continue to make great products. I have watched Apple since 1997. The analysts have always gotten them wrong, Wall Street has always reacted against logic. Business doesn’t get Apple, but more and more average consumers do. That is all that really counts.

  1. Do the analysts ever tell Jeff Bezos how to run Amazon or Larry Page how to run Google? Hardly. Could anyone imagine the analysts telling Elon Musk how to run Tesla? You think they would tell him to stop making premium electric vehicles and compete with Hyundai electric cars? Should Tesla go for market share? Unlikely. However, every two-bit pundit is always trying to tell Tim Cook how to run Apple or what Apple should do to gain more market share.

    It’s really freaking annoying to have to listen to such crap all the time. Apple currently has the highest market cap and largest reserve cash pile by a large margin of all companies, so what’s the freaking beef all the time about how Apple needs to alter its business strategy to earn more money or prevent itself from becoming irrelevant.

Reader Feedback

This site uses Akismet to reduce spam. Learn how your comment data is processed.