Apple will spring back thanks to strong solid balance sheet and new products

“Apple took a major hit Thursday, with shares plummeting by more than 2.5% at one point,” Kat McKerrow writes for TheStreet. “Apple finished the day down 2.37%.”

“However, now is not the time to give up on Apple,” McKerrow writes. “It is still one of the world’s greatest companies and an excellent place for your investing dollars. It has a lot of cash for developing new products and will introduce a new edition of its popular iPhone in a few months.”

“Apple is one of the world’s most profitable businesses,” McKerrow writes. “Its free cash flow is out of sight, and the company is currently resting on about $230 billion in cash and investments on its balance sheet. ”

Read more in the full article here.

MacDailyNews Take: Please don’t confuse Wall Street with facts.

SEE ALSO:
Credit Suisse: Buy on the weakness in Apple shares – May 12, 2016
Apple quickly retakes ‘Most Valuable Company’ crown – May 12, 2016
Apple again the world’s most valuable company – February 3, 2016
Go figure: Google’s ‘more valuable’ than Apple, but Apple’s iPhone takes 94% of smartphone industry’s profits – February 2, 2016
Apple’s iPhone can soon reap 100 percent of world’s smartphone profits – November 17, 2015
Apple’s iPhone owns 94% of smartphone industry’s profits – November 16, 2015

9 Comments

  1. ‘Actionable research’ notes started today with Credit Suisse recommending that AAPL is a buy … You don’t say! (to be followed by the rest of the Wallstreet sheep, otherwise known as anal gazing cysts!!

  2. Apple’s Market cap is $500B yet they have $230B in ‘cash’. Given that some of this cash is their own shares, Apple owns almost half it’s value. It means that Wall Street consider Apple as worth only about $270B.

    A few more bumper revenues and Apple will own Apple!

  3. And so is L.Ron Hubbard, Tupac Shakur, and Elvis!

    Under Tim Cook, Apple is just as dead as all of the above, as Cook is nothing more than an incompetent babysitter that starts eating your food and screwing her boyfriend in your house as soon as she starts the job!

    Cook should’ve been fired 4-years ago when he decided to steal billions from us for unnecessary adapters, when he intentionally killed the 30-pin connector industry out of pure greed.

    Mark my words, if they don’t fire Cook soon then say goodbye to the rest of Apple.

  4. Stock Market 101: Wall Street doesn’t control, decide or “set” the price of a stock. Nor does it “reflect” the state of the economy, let alone the state of any company represented.
    For example, the success of Apple (or lack thereof) has no direct effect on the price of Apple’s stock. Rather, when traders are (in general) more interested in selling it than buying it, the price of a stock declines. The opposite is also true.
    If you “Play” the stock market (trade) you quickly discover the only way to make money on a rising stock is to be among the first to buy it (when it is still low). And the only way to avoid losing money on a declining stock is to be among the first to sell it (when it is still high). The net result, folks, is traders don’t watch the company behind the stock. They are watching each other. If a few start selling a stock, the rest rush to sell it, too. If they hear some news (or some analyst’s comments) that they think will cause other traders to react, they will try to be among the first to so react. Thus they become a self-fulfilling prophecy.
    Investors, on the other hand, are interested in the company. They buy and hold for the long term. For them, it’s a savings account with (hopefully) a better return. But because of this, Investors don’t influence price changes in any way.
    Wall Street is not smart, stupid or clueless. People who cry, “They just don’t understand Apple,” don’t understand the market. It’s a mob-mentality, pure & simple. They don’t care about you, me or Apple. They only care about each other and any “skill” they may have is simply the ability to predict what other traders might do before they do it.

    In other words, “traders” are like sheep… If a few suddenly start to run, they all run and in the same direction. Only afterward will analysts attempt to figure out why.
    What’s the solution for Apple? Minimize their reliance/exposure to traders. So, you begin share buy-backs and bond issues – with an eye toward reducing your risk (from traders) or perhaps one day eliminating it! (Get out of the stock market and go private. All they’d really need is lots of money to fund themselves! Hmmm.)
    I’ll get off my soap-box, now.

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