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re: Time to buy some AAPL?

Posted on 12/12/12 at 3:51 pm to
Posted by TheHiddenFlask
The Welsh red light district
Member since Jul 2008
18384 posts
Posted on 12/12/12 at 3:51 pm to
quote:

but when a company is sitting on cash equal to +20% of their value


It is a great point that 20% of thier value was cash. However, I discount that amount because I don't trust companies stockpiling cash. If you can't put it back in the ground, just start paying a dividend.

quote:

I think it's difficult to see the price being much lower as their earnings continue to rise.


That last assumption is VERY dangerous. MARGIN COMPRESSION will be the pitfall for AAPL's valuation as soon as they go 4 or 5 years without completely changing the landscape of the technological world.
Posted by C
Houston
Member since Dec 2007
27845 posts
Posted on 12/12/12 at 5:35 pm to
That's not an assumption, that's a fact that their earnings have risen. And they have started to pay a pretty nice dividend. As much as I love XOM, they are having their own troubles finding new sources of oil.
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