I Own Apple & Now I Own More
November 16, 2012
– Comments (5) |
RELATED TICKERS: AAPL
I was one of the lucky ones. I got my first Mac back in 2000 right when they introduced the "Clamshell" laptop computer. I still own it as a matter of fact. I was sold on the product, software, and future for Apple from that day forward. Apple was the first stock I ever bought and still hold.
It has been years since I added to that position. But today I just pulled the trigger again. I believe the future still looks very promising for Apple. But this is the very definition of catching a falling knife. Why am I doing this? Well for one, the amount I just bought will never ever damage my returns I've experienced over the last 12 years so there is that bit of safety. But more important if you were to look at a 3 year chart of Apple you'll notice that it is at what I believe represents stability in the form of long term holders. Also, I believe I know oversold conditions when I see them. I want to have a little extra in for that snapback rally that I'm anticipating. We all know that can't build iPhones fast enough. We all know they are taking market share from PC makers and that will continue. Finally, we all know that once you have an iPhone you need an iPad then comes the iMac. Apple is winning over new users all the time and this won't stop. I am still very bullish on Apple for the future.
So let's see what I got for my money. A company with no debt and a huge pile of cash. A P/E of 11.65. YoY revenue growth of 27% and a YoY of earnings growth of 24%. Trading $100 below the 200 DMA of $610. A RoE of 35% and a RoA of 23%. Oh, and a forward PE of 8. Value, growth, and awesome buying opportunity with this dip all in one simple transaction. Sold.
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