Udall: Apple’s cash flow undervaluation is ‘f’ing absurd’

“Apple Inc.’s stock is undervalued based on its cash position, Sean Udall, a tech stock expert recently argued,” Jayson Derrick reports for Benzinga. “But just how undervalued is Apple’s stock? According to Udall, it is ‘f’ing absurd.'”

“Udall continued that Apple’s net cash would be ‘well north’ of $250 billion when factoring in all the money the company spent on stock repurchases and other shareholder friendly initiatives,” Derrick reports. “He added that at a $250 billion net cash position investors are buying the company at a valuation that is just above 2x net cash given Apple’s market capitalization of around of $530 billion.”

Read more in the full article here.

MacDailyNews Take: As some guy named Warren Buffett once said:

Be fearful when others are greedy and greedy when others are fearful.

SEE ALSO:
Morningstar: Apple sell-off looks overdone – January 8, 2016
Real world iPhone 6s adoption data contradicts Apple analysts’ so-called ‘supplier channel checks’ – January 7, 2016
Top-rated analyst: Apple’s iPhone business is healthy – January 7, 2016
Apple falls for third day as so-called ‘iPhone woes’ trim $40 billion in value – January 7, 2016
Apple stock price tumbles 3% in premarket, now trades well below $100 – January 7, 2016
Apple stock slumps near $100 amid ‘iPhone sales worries’ – January 6, 2016
Wall Street’s freak out over declining iPhone sales is overblown – January 6, 2016
Piper Jaffray: Apple’s iPhone production cut do not necessarily presage sales decline – January 6, 2016
Foxconn plans ‘rare’ holiday as iPhone output fears rattle investors – January 6, 2016
Apple to release Q116 earnings, webcast live conference call on January 26th – January 5, 2016

21 Comments

  1. All this means is that Apple shareholders will be screwed for all eternity. Wall Street has a biatch without any protection they can slap around any way they please. It’s being said that Apple shareholders can’t rely on Tim Cook to give them any protection from a constantly falling share price while other tech companies don’t have to worry about anything.

    We all know that Wall Street isn’t going to mess with Jeff Bezos because he’s Warren Buffett’s BBF. They’re not going to mess with Elon Musk because he’s going to change the world with electric cars and home batteries. Tim Cook is the low dog on Wall Street’s totem pole. Tim Cook is the dog they kick when they don’t get what they want. Wall Street also knows Apple shareholders are stupid and delicate so any tiny bit of rumor or speculation sends them dumping Apple stock like a hot potato.

    It’s almost embarrassing to own Apple stock and having to listen to strangers talk about how such a large company is collapsing under its own weight and companies with far less revenue are kicking Apple’s buttocks senselessly. Having to watch Apple’s market cap fritter away for ridiculous reasons is really pathetic. A P/E of 10.7 is closer to IBM and Hewlett-Packard Enterprise P/E territory than any respectable tech company. Apple shareholders are the laughingstock of 2015 and 2016 doesn’t look like it’s going to be much better.

    1. What would you do to change the situation?

      And please don’t go on a ‘dump Cook’ jag. We already know Apple is doing brilliantly well and will do so into the future.

      If it’s have Apple turn vocally defensive of the manipulation and absurd devaluation, all I see there is a rhetoric war and an opportunity for flames.

    2. “We all know…”
      Any argument that begins this way can be flagged as delusion. Anyone who subscribes to such toxic paranoia should at least sell all their stocks to protect themselves.

  2. Why get mad. Enjoy it for the opportunity its it offers.

    Apple should be taking advantage of this and thanking Wall Street. So should everyone here. Buy as much as you can and don’t look back.

    1. Agree. And this is where dividends come in handy. A little bit of cash flow is sweet, while waiting for the stock price to return to reality.

      Sweet dividends in the meantime.

  3. Federal investigation.

    Someone is trying to ruin Apple’s stock position. Maybe Google? Maybe Apple themselves?

    Reduced evaluation, with a pile of cash, I can think if Apple wanted to take themselves off the stock market, completely, you wouldn’t try at it’s height, but when it’s at it’s lowest.

    I am trying to figure this out based on the winners and losers. Maybe someone else knows more.

  4. Stock prices are all about anticipation. Cash describes what happened in the past. For whatever reason lots of WS guys don’t trust that the future for Apple is rosy. They bid up some other companies because, right or wrong, they believe that Apple doesn’t have a lock on future earnings. MS has a lock on selling Office and some other software, Amazon has a story that they will eventually have a monopoly on retail, Google sells the story that they will eventually produce some sort of gee-whiz tech that will be a huge new market. Apple, by contrast, is famous for their secrecy. There is no road map for future technologies. Apple might be far ahead of Google regarding self-driving cars, but Google talks a lot about this publicly and Apple doesn’t.

    Because there is no story with Apple except past earnings it is difficult to sell investors on the idea of future earnings. Horace has shown in the past that share price tracked accumulated cash very well for several years indicating that people invested on cash and not product releases.

  5. Dear Tim Cook,

    Please take 100 billion in cash and buy AAPL today and in the future when the manipulates have done their work to deflate the stock.

    Thanks

        1. Agree: no one said anything about taking AAPL private.

          But buying back AAPL shares when they are silly cheap makes a lot of sense. If no one else thinks AAPL shares are worth it, Apple should scarf up shares at silly cheap prices. Better for Apple and the remainder share holders. (Then increase dividends to those smart enough to hold. Ya, baby!)

          Apple would just be putting their money where their mouth is, so to speak.

          Go Apple!

  6. Just look around, iphones every-f#ckin-where that’s hell of a platform to leverage and the retards on Wallnut street think Apple has no future. You just wait and see!

  7. From the source article:

    This raises the natural question: if Apple’s stock is so attractive at 2x net cash, why is the stock lower by nearly 12 percent over the past year.

    According to Udall, the dip in Apple’s stock is due to “machine driven raids,” along with “fear and crashes.” He added “this is what what happens when there are no humans in charge of trading anymore.”

    Another Hmm.

    1. I’m leaning more towards manipulating the individual stockholders with FUD over anything automated since AAPL institutional ownership is significantly lower than its ‘peers’..

      1. Yes. We read the propagandist and outright ignorant FUD here at MDN on a regular basis. It’s a fact that FUD is a herding mechanism for AAPL stockholders. (And of course a herding mechanism for a great many other things as well, such as convincing the US citizenry to get stuck in yet-another worthless war in the Middle East, as per the wishes of Israel…).

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