AAPL's current momentum, fundamentals

C

cqm

Hello, I have never done a fundamental analysis of apple

all I know is that they have a high powered growth stock, that is very liquid, they charge a premium for their products and services and people like them enough that they are a market leader in innovation simply because people will adopt whatever they put out = more money in their coffers. They also have low overhead costs from china.

what I don't understand is apple's forward momentum:

Everyone knows how much Apple has in the bank, its always the talk of the town. Isn't that priced in already? like at earnings reports.

with that in mind I don't understand what would prompt a rally on a stock with such a high price as is.

they did a 2:1 reverse split before, so their share price is close to 1000?

anyway, I haven't looked into it further than that. please explain with fundamentals to back it up
 
Quote from cqm:

they did a 2:1 reverse split before, so their share price is close to 1000?
More...

They have never done a R/S before. Since inception, there has been three AAPL 2-1 stock splits (1987, 2000, &2005), so that would put the stock price actually at $3,945.36 per share.
 
IMO the new product introductions will reach new users. Yes apple has more growth ahead in fact (IMO). I think your analysis is spot on so far. Also consider that apple is inefficient relative to Microsoft, given they're operating lots of storefronts and other overhead just to get the thing running. They also have multipule target audiences - iPhones are one set of people, iPads include largely another set, macs are another set, and iPods even have separate owners who would normally not buy any apple products. One nice thing about this is once someone buys into only one apple product, they're inclined to go to the next level (ex laggard buys iPod, then iPhone, then Mac three years later).

Apple is effectively an iPad company, iPhone company, Mac company, and the us dollar (almost 25% now). With their further outreach to their new customers, along with their expensive overhead in the us, they can easily blow past $500b marketcap.
 
Quote from cqm:

what I don't understand is apple's forward momentum:

Everyone knows how much Apple has in the bank, its always the talk of the town. Isn't that priced in already? like at earnings reports.

with that in mind I don't understand what would prompt a rally on a stock with such a high price as is.

anyway, I haven't looked into it further than that. please explain with fundamentals to back it up
More...

The stock has a "high price" compared to the universe of stocks, but it's trading at very low price to earnings (P/E) ratio for a growth stock that produces quarter after quarter, and it's still bargain-priced even after today's clean uptrend.

The price momentum is based on real buyers initiating or adding to long positions; it's not a short squeeze. AAPL's short interest is only around 1% of the float.

I posted this on GrandSuperSalad's "AAPL Crash" thread this morning in pre-market:

Quote from NoDoji:

AAPL's currently undervalued. Their 2012 earnings are projected at $42/share, a 50% gain over 2011 earnings.

AAPL grew revenues and earnings through a near-Depression recession and has shown no sign of letting up.

AAPL trades at a P/E of 13 and right now as I type this 99.999999% of its shareholders are profitable.

Look for crashes elsewhere. Maybe AMZN with its P/E of 135...
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Quote from cqm:

Hello, I have never done a fundamental analysis of apple

all I know is that they have a high powered growth stock, that is very liquid, they charge a premium for their products and services and people like them enough that they are a market leader in innovation simply because people will adopt whatever they put out = more money in their coffers. They also have low overhead costs from china.

what I don't understand is apple's forward momentum:

Everyone knows how much Apple has in the bank, its always the talk of the town. Isn't that priced in already? like at earnings reports.

with that in mind I don't understand what would prompt a rally on a stock with such a high price as is.

they did a 2:1 reverse split before, so their share price is close to 1000?

anyway, I haven't looked into it further than that. please explain with fundamentals to back it up
More...

That's the typical misunderstanding when I hear people discuss leverage they don't know the difference between 1:2 and 2:1. 2:1 means you get 2 for 1 or 2 shares for every 1 share you own or 1 extra share or twice as many as you had before.

Whenever I see people discussing leverage and they write 1:10 for 10:1 even though I know what they mean I still think it's bad most people don't understand the semantics.
 
Quote from bwolinsky:
even though I know what they mean I still think it's bad most people don't understand the semantics.
More...

peculiar addition to the thread then


thanks, in the OP I didn't mean reverse split but it wouldn't let me edit it
 
Quote from cqm:

peculiar addition to the thread then


thanks, in the OP I didn't mean reverse split but it wouldn't let me edit it
More...

Basically after every post I might spend the next half hour editing it after I've posted.
 
If you believe Aapl can acheive 20%+ FCF or earnings growthy over the next 10 years,its a very cheap stock


Quote from cqm:

Hello, I have never done a fundamental analysis of apple

all I know is that they have a high powered growth stock, that is very liquid, they charge a premium for their products and services and people like them enough that they are a market leader in innovation simply because people will adopt whatever they put out = more money in their coffers. They also have low overhead costs from china.

what I don't understand is apple's forward momentum:

Everyone knows how much Apple has in the bank, its always the talk of the town. Isn't that priced in already? like at earnings reports.

with that in mind I don't understand what would prompt a rally on a stock with such a high price as is.

they did a 2:1 reverse split before, so their share price is close to 1000?

anyway, I haven't looked into it further than that. please explain with fundamentals to back it up
More...
 
You can never go wrong with AAPL. Just look at last three month's rank. It has been breaking all resistance levels and reaching higher.
 
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