“I’m not going to bore you with another Apple article paying tribute to the great company. Our praise is meaningless,” Richard Saintvilus writes for TheStreet. “”
“With 51 million iPhones sold in the most recent quarter, iDevices are everywhere,” Saintvilus writes. “And when it comes to tablets, Apple is the only one making any money. The company has amassed $160 billion and cash. But everyone volunteers their opinion of how CEO Tim Cook should spend it. Heck, even without Apple’s cash the stock would still be valued over $500.”
“So it’s a little surprising that Apple’s stock looks as cheap as it does,” Saintvilus writes. “I expect Apple to raise the dividend and double the buyback program to $120 billion. With $160 billion on the balance sheet and $53 billion in operating cash flow, financing will be no issue. With the cash earning next-to-nothing on the sidelines, Cook has no choice but to place the bet on his own company… Apple will immediately be seen as shareholder friendly. Institutions will return like bees to honey. It wouldn’t be beyond the realm of possibility for Apple’s stock to then appreciate 50% in the next twelve months. From current levels, this projects fair value right around $800 a share…”
Read more in the full article here.
[Thanks to MacDailyNews Reader “David E.” for the heads up.]