You act like just because they havent rushed out to make an acquisition during this bull market that they're ignorant. You have companies trading at some of the most ridiculous multiples we've ever seen in the tech world yet you want apple to go out there and overpay??? If you haven't noticed Apple & Gilead are both the leaders in their fields tech & medicine and neither one has made a horribly overpriced acquisition in the recent bull markets....coincidence? I think not. Prudent management doesnt simply go out and buy things just bc they have piles of cash, I mean my god.

Apple has done nothing wrong, just bc they're not constantly buying companies and investing new products doesnt mean its junk. They trade at a ridiculous multiple to the point where if it traded like everything else it would prob be $140/share or more. The fact they have a mountain of cash just means they can weather a storm better than others. It really makes no sense to me when people talk about apples numbers and numbers dropping, the numbers are so ridiculous that it doesnt even matter. Look at apples market cap vs something like amazon with nominal profits and tell me if you think apple isnt a steal. Apple may not have something up its sleeve today, but it will, and when it does, it will have the cash to execute a plan without secondarying all over shareholders.

Apple is slowly taking more and more money from its loyal customers monthly, apple music now is $9.99 and people are paying for it. Apple is brilliant on so many levels, if they wanted to launch streaming, netflix and hulu would be in trouble. If they wanted to build a tv, every other tv maker would be in trouble, most people with apple products are so satisfied with their product that they would literally buy and pay just about any price apple puts on any new product.

This post was edited on 5/3/16 at 9:34 pm

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Posted by TigerDeBaiter

Member since Dec 2010

10268 posts

Posted on 5/3/16 at 10:39 pm to dabigfella

quote:
You act like just because they havent rushed out to make an acquisition during this bull market that they're ignorant. You have companies trading at some of the most ridiculous multiples we've ever seen in the tech world yet you want apple to go out there and overpay???

I couldn't agree more with the valuation argument. Trust me. I've been a big bear the past few months.

That said, they will pay a premium regardless. So I don't think what the company is trading for currently has much to do with anything. There are folks much smarter than you and I that will evaluate what a potential acquisition is worth. But furthermore, I just don't see Apple doing this. What has management telegraphed to you that nobody else has seen? Sure, Tim said "we're acquisitive" or whatever bologna he muttered when he was pressed the other day, but I really think Tim is content to march on and provide a good working environment for thousands of employees and focus on being a socially responsible steward of the business world.

quote:
If you haven't noticed Apple & Gilead are both the leaders in their fields tech & medicine and neither one has made a horribly overpriced acquisition in the recent bull markets....coincidence? I think not. Prudent management doesnt simply go out and buy things just bc they have piles of cash, I mean my god.

It's funny you mention GILD. They are currently facing the a similar problem. One trick pony with increasing competition.

quote:
The fact they have a mountain of cash just means they can weather a storm better than others. It really makes no sense to me when people talk about apples numbers and numbers dropping, the numbers are so ridiculous that it doesnt even matter. Look at apples market cap vs something like amazon with nominal profits and tell me if you think apple isnt a steal. Apple may not have something up its sleeve today, but it will, and when it does, it will have the cash to execute a plan without secondarying all over shareholders.

Weather the storm huh? I think I'd rather grow my dollars with someone like Amazon than have them sit around while Apple "figures it out".

We've discussed my views on Amazon already isn't that other thread, so I won't repeat myself, but your objectivity is clearly lacking. People pay for growth, not past success. You have a very distorted view of market cap, PE, growth, etc and can't seem to distinguish the different stages of a company.

quote:
Apple is brilliant on so many levels, if they wanted to launch streaming, netflix and hulu would be in trouble. If they wanted to build a tv, every other tv maker would be in trouble

Ok, now you're just trolling. WTF does that even mean? "If they wanted to"? They don't want to? I thought they had all the cash in the world to do anything... I guess it's not worth their time.

I'm out. Peace.

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