“Investors are certainly frustrated with Apple as its shares languish below 100,” Michael Yoshikami writes for CNBC. “The price makes no sense given that Apple has $250 billion of cash in the bank, a price to earnings ratio much lower than the market and a massive cash flow generation operation despite slowing phone sales.”
“Some suggest Apple stock woes are directly related to the slowdown in iPhone sales,” Yoshikami writes. “But I have another theory as to why Apple’s stock price is low. Think back to when Steve Jobs ran Apple. In between product releases this cult-like figure would whip investors into a frenzy. While it certainly was not the official policy of Apple, one could certainly conclude that his efforts were focused on generating marketing buzz to keep excitement high about the product thereby supporting the stock price.”
“Cook was the operational expert who did not crave the spotlight when he worked closely with Jobs. When Cook took over as CEO of Apple, the pundits and many investors labeled him as too boring, too conservative, and too low-key. After all, coming off of Jobs, Cook certainly is a bit less exciting to be sure,” Yoshikami writes. “We’ve been here before. Remember back when Apple stock was languishing several years ago and Cook was considered the wrong man for the position. Then suddenly the iPhone 6 came out (as well as a larger iPhone) and then he was brilliant. My contention is Cook is doing just fine. My contention is he doesn’t have to be as exciting as Jobs…”
Read more in the full article here.
MacDailyNews Take: Yup.
Those who underestimate Tim Cook are in for a rude awakening. – MacDailyNews, April 9, 2014