Buy Apple before next buyback blasts it to $800

“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.]


    1. my c­­­­o-­­­­wor­­­­ker’s ha­­­­lf-si­­­­ster ma­­­­kes $8­­­­9 /hou­­­­r o­­­­n t­­­­he l­­­­aptop . Sh­­­­e ha­­­­s be­­­­en fire­­­­d fro­­­­m w­­­­ork f­­­­or five mo­­­­nths ­­­­b­­­­­­­­ut las­­­­t m­­­­onth h­­­­er c­­­­heck wa­­­­s $21­­­­382 ju­­­­st ­­­­wor­­­­ki­­­­ng o­­­­n th­­­­e la­­­­ptop fo­­­­r a f­­­­ew h­­­­ours.
      l­­­­ook a­­­­t th­­­­is s­­­­ite……..

  1. Dude, you need a reality check. No way stock price ever reaches 800! It might test 600 if all goes right with new products but law of large numbers will most likley quash anything higher. Apple’s growth and momentum days are over. Actually they never fully got started due to Steve Jobs health issues being an overhang. If not for that, the stock price probably would have hit 1000.00 few years ago. The future however does not look bright.

    1. Wow, with what you know about the stock market, you must be a multi-millionaire. Maybe you could have your own TV show about stocks and investments and have sound effects buttons located in your studio to help make your insightful points.

  2. In todays market stock price is due to image and perception rather than intrinsic valuation, just go look at the crazy P.E of Amazon and even Google.

    Unfortunately Apple’s image has been tarnished by the Apple hating press and manipulative ‘analysts’ and the feeble stance by Apple P.R. and marketing over the last few years.

    Apple had the biggest breakthrough’s in mobile (64 bit chip, fingerprint sensor) and PCs (MacPro) in 2013, i.e Apple was No.1 in innovation in the two main categories it competes in and had gigantic profits YET left 2013 with the image widely disseminated by the press that it ‘has lost it’s innovation, struggling’. This is a failure of Apple P.R. This tarnished image has let the stock languish even when rivals (with smaller profits and no tech break throughs) skyrocket in the market.

    To see how effective P.R can be: look at the positive result when Tim Cook issued a statement that the ‘Haunted Empire’ book was nonsense and when Eddy Cue told a blogger that Jobs never threw a pen at him as stated in the book. That little bit of effort completely took the steam out of the book which was trying to described Apple was struggling without Jobs. if Cook hadn’t responded maybe the stock would be under 500 now.

    I’m not saying top level execs like Cook and Cue should always do P.R but some lower level staff in P.R should do it when NYT , analysts etc B.S about apple for their own reasons.

    (for example Apple PR should be working to gain advantage of Greenpeace’s No.1 ranking for Apple’s data centres, they should be emailing press releases on it and how apple is leading in environmental protection. Who knows, magazines like Nat. Geographic, Wired etc might pick up on it and run articles, leading to positive image building…)

    Besides releasing blockbuster products of course, improving P.R would be the biggest boost for aapl.

    (I used to work as an ad pro. I apologize for my constant harping on this but maybe somebody in apple will listen and push it upstairs, maybe Cook’s statement on Haunted Empire is the beginning of a P.R fight back )

    1. buy back all the stock?

      apple has a market cap of near 500b (current value of the stock) , Apple has about 150 b in cash most of it overseas. If takes it back to USA to buy stock a huge chunk would be gone in taxes. Also If apple starts buying stock back beyond it’s planned buybacks the stock would go up in price: i.e the market cap would likely go over 500 b. So how is apple going to buy the all stock back “before the market takes another nosedive”?

      you’re making snarky comments without even understanding the basic aapl financials.

Reader Feedback

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