Apple, Inc. (NASDAQ:AAPL)

CAPS Rating: 4 out of 5

From iPods to iPhones to MacBooks, Apple uses its “think different” approach to reframe computing, communication, and more.

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Player Avatar boxxer55 (98.25) Submitted: 1/28/2013 10:38:09 PM : Outperform Start Price: $63.07 AAPL Score: +27.96

The selloff is nearing completion. I don't think folks fully appreciate the value of the environment Apple has created through iTunes and the app store, nor where those markets may go next. Apple is currently trading at below utility company valuations, as though it has only inflationary growth opportunity and a healthy dividend. Bulls were too optimistic at $700 and the Bears are too pessimistic at $460. While growth may slow, it remains the gold standard and will continue to flourish. It was too rich to pick previously, but now is a great entry point in my opinion. I wanted to wait for $425, but $460 is satisfactory for the long haul. It is a fair price for a great company.

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Member Avatar tepidfool (< 20) Submitted: 1/29/2013 7:23:41 PM
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This is my first time to reply on fool.com. I had some questions about AAPL maybe you guys could help me with. I'm poised to buy some but I don't know.

Got interested in this recently after seeing pessimistic newspaper articles about the stock being down, for me that can signal a deal.

I had some questions about the 10-K and Q-1 10-Q. I had heard a guy on yahoo financials talking about AAPL's $140 billion cash stockpile. I don't see that in the statements. I see: Cash and cash equivalents $ 16,154 Short-term marketable securities 23,666, and a total assets of $196,088 mil. Am I missing something? That doesn't seem like the legendary cash stockpile I've heard APPL has.

I noticed someone liking the "great dividend" they're giving. $2.65/ share at $450.00 that's a "great" .5% dividend this Q to put them at around 2% for the YTD. I can get a better dividend with PG.

I don't think about APPL being a cautious man's stock, but I'd be interested in advice about where a good time to buy in would be based on a value approach. Does it need to come down further?

Member Avatar davidm9999 (< 20) Submitted: 1/30/2013 7:51:56 PM
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According to Apple's annual balance sheet, its cash stock pile is $57 billion. In its last quarter, it had $72 billion in current assets aka cash. The $140 billion figure may come from the fact that Apple has reserve stock that it could quickly liquidate, to the tune of $70 billion. I would pin the figure somewhere between $50 and $70 billion. Then again, you never really know. It's just a figure.

Member Avatar NovaTodd (68.45) Submitted: 1/31/2013 10:39:23 AM
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Tepidfool,

The $139 billion figure comes from including long term marketable securities in the cash calculation. Most of these securities mature within the next five years, but obviously not within the next 12 months. Thus, although not included in the GAAP calculation for total cash on hand, some people will include this figure in their calculation. I personally do not include this amount when evaluating Apple (for example, when calculating Enterprise Value I use only $39 billion), but it is something to be aware of. It's also worth noting that much of this cash is held overseas and would be subjected to a tax penalty were it to be repatriated.

You are right that there are better yields available elsewhere; however, one thing to keep in mind with Apple is that the current dividend payout represents only about 20% of annual free cash flow. This means the company has plenty of room to increase the dividend over the coming years, and I suspect they will do that.

Member Avatar boxxer55 (98.25) Submitted: 12/3/2013 3:37:47 PM
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Tepid, did you ever buy AAPL?

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