Monkeying around with Apple Q1 2014

SlothropsMonkey writes in the Motley Fool Post of the Day:

Humans,

We’ve all heard that a million monkeys banging on a million typewriters will eventually reproduce the entire works of Shakespeare. Now, thanks to the Internet and the pontification about Apple’s latest earnings update, we know this is not true.

Speaking of true things, Monkey is now going to process Apple’s latest update nice and mumble-like to himself for nobody’s edification nor pleasure but his own, just to see how high he’s swinging from the branches and how hard he’ll hit his head when he slips, flips and falls.

So step by step…

Monkey is paying $506 dollars to own a business that last year paid him $40.32. Which means that for every 12.4 bananas Monkey invested, he gets an extra one “for free” to put into his tummy. Is this 12.4 ratio good? Hard tellin’ with nothing to compare it with. So look up the current S & P 500 P/E ratio and find that it is 18.88. That means that on average, you have to pay 18.88 bananas to eat an extra one. Which makes the price of one of Apple’s earning bananas approximately 34% cheaper than all the companies on the S& P on average. By this measure, Monkey feels like his investment in Apple’s bananas is wise.

Humbly recall there is also $157 per share in the piggy bank, effectively making Apple’s business in and of itself worth $380, which divided by last year’s $40.32 in earnings leads to a ratio of 9.42, or approximately 50% cheaper than the average of the S & P index.

Much more monkey goodness in the full article – very highly recommended – here.

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

15 Comments

    1. feeling down looking at the apple and apple stock news so I needed that, gave me a laugh.

      I remember having a tug of war with an orang utan in Malaysia. The orang sat in his cage waving a stick to passer-byes for a game. I held on to a stick with both arms, the ape was so strong from a sitting lounging position he pulled it out of my hands with a flick of one hand. He looked totally bored : “another weak stupid human”.

  1. Who else reckons that the monkeys will drag the price down to exactly 500 bananas by the close of business on Friday ?

    Then on Monday morning, they can pump it up again.

    Anticipating this monkey business, I sold a load of AAPL last week and will be buying in again this afternoon and expecting to end up with more of them than I sold.

  2. “Monkey is paying $506 dollars to own a business that last year paid him $40.32”

    unfortunately that is nor correct. the business only paid $12.20 to said monkey. the rest was put in a cave by the monkeys who run the business. as they have been doing for ages. monkey scratches his head. why are all those bananas sitting in this cave? why is no one eating them?

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