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Yeah, it's slid so far they are trading at a PE of 12.63 instead of the much more respectable 190 that FB trades at. When you think about the world's most valu

by fleitz 14y ago

Yeah, it's slid so far they are trading at a PE of 12.63 instead of the much more respectable 190 that FB trades at. When you think about the world's most valuable company doubling profit year after year and your return on investment you shouldn't accept a mere 12, you should go for the gold with FB's 190, I mean they'd have to 10x their profit just to get to a PE of 19. Dumping a stock with a PE of 12.63 on track to double profits because it slid 3.8% is kind of advice you get from expert traders like Jim Cramer, he was so successful at trading that NBC offered him a show and he took it. This guy knows his stuff! The stock is seriously overvalued if Cramer announces a sell soon and everyone who reads this article dumps it you could be looking at a nice little Christmas present with AAPL at a PE of 9 or 10 just in time for tax loss selling.

po 14y ago
Most of the time, when I have heard people talking about it being doomed, it would have been a good time to back the truck up to the orchard and load up on AAPL. Usually my sell-sense starts going off when I hear Jim Cramer and other bozos talking about how hot a stock is. With AAPL I don't think that will ever happen. Furthermore it has never moved in a sane way with respect to the P/E ratio. Totally confounding.
GuiA 14y ago
I have no clue what you're talking about but I'd like to learn— are there any websites/books you recommend?
prostoalex 14y ago
PEs are reflective of past revenues. As this graph shows, tracing PE is no way to the riches http://finance.yahoo.com/echarts?s=LWPE+Interactive#symbol=LWPE;range=2y http://finance.yahoo.com/echarts?s=LWPE+Interactive#symbol=L...
fauigerzigerk 14y ago
I'm not optimistic on Apple in the long run, because so little of their revenue is recurring. They hit the jackpot with the iPhone, but once that euphoria ends either their sales or their margins will crash. But I don't think that time is now. People will be buying their stuff hand over fist for Christmas and the stock is cheap. Incredibly cheap actually, considering a fifth of their market cap is cash.
- fleitz 14y ago
  In the long run we're all dead. I think the stock is still a solid pick, especially if you have a position already, the article acts like the sky is falling because the stock slid a few points. On the fundamentals it's a very solid business for now. It's interesting to see them still fair well against Android even with ICS which put Google on par. This to me indicates that the smart phone market is much more about brand than features. I think they've done a great job creating a moat via their brand in the same way that Coke did vis-a-via Pepsi. If they can get people to put iDevices in stockings like Coke gets people to drink coke at Christmas then it doesn't matter that their rev isn't recurring, just like Coke. If the perception remains that Android is the knock off then I think they will do well.
  - fauigerzigerk 14y ago
    I agree that the sky isn't falling for now and the stock is cheap. But there is a huge difference between a $1 item and an $800 (ex subsidies) item. It's simply a very different share of people's disposable income.
- nicholassmith 14y ago
  Scroll back about 5 years or so and people were saying that exact same thing about the iPod. They move from one product onto another, and we won't know what's next until it occurs.
  - fauigerzigerk 14y ago
    I don't doubt they will come out with great new products. But one day the kind of growth we have seen will be over. Their sales growth has been about 44% for the last 10 years. Another 10 years like that and Apple sales alone will be a third of the US GDP. That's not going to happen.
antr 14y ago
You know when, non-techie, ordinary people can't tell the difference between a designer and a backend engineer, right? The same applies to all other disciplines in life. Great three paragraphs while saying absolutely nothing insightful, cohesive, nor valuable.

by fleitz 14y ago

po 14y ago

Most of the time, when I have heard people talking about it being doomed, it would have been a good time to back the truck up to the orchard and load up on AAPL. Usually my sell-sense starts going off when I hear Jim Cramer and other bozos talking about how hot a stock is. With AAPL I don't think that will ever happen. Furthermore it has never moved in a sane way with respect to the P/E ratio. Totally confounding.

GuiA 14y ago

I have no clue what you're talking about but I'd like to learn— are there any websites/books you recommend?

prostoalex 14y ago

PEs are reflective of past revenues. As this graph shows, tracing PE is no way to the riches http://finance.yahoo.com/echarts?s=LWPE+Interactive#symbol=LWPE;range=2y http://finance.yahoo.com/echarts?s=LWPE+Interactive#symbol=L...

fauigerzigerk 14y ago

I'm not optimistic on Apple in the long run, because so little of their revenue is recurring. They hit the jackpot with the iPhone, but once that euphoria ends either their sales or their margins will crash. But I don't think that time is now. People will be buying their stuff hand over fist for Christmas and the stock is cheap. Incredibly cheap actually, considering a fifth of their market cap is cash.

fleitz 14y ago
In the long run we're all dead. I think the stock is still a solid pick, especially if you have a position already, the article acts like the sky is falling because the stock slid a few points. On the fundamentals it's a very solid business for now. It's interesting to see them still fair well against Android even with ICS which put Google on par. This to me indicates that the smart phone market is much more about brand than features. I think they've done a great job creating a moat via their brand in the same way that Coke did vis-a-via Pepsi. If they can get people to put iDevices in stockings like Coke gets people to drink coke at Christmas then it doesn't matter that their rev isn't recurring, just like Coke. If the perception remains that Android is the knock off then I think they will do well.
- fauigerzigerk 14y ago
  I agree that the sky isn't falling for now and the stock is cheap. But there is a huge difference between a $1 item and an $800 (ex subsidies) item. It's simply a very different share of people's disposable income.
nicholassmith 14y ago
Scroll back about 5 years or so and people were saying that exact same thing about the iPod. They move from one product onto another, and we won't know what's next until it occurs.
- fauigerzigerk 14y ago
  I don't doubt they will come out with great new products. But one day the kind of growth we have seen will be over. Their sales growth has been about 44% for the last 10 years. Another 10 years like that and Apple sales alone will be a third of the US GDP. That's not going to happen.

antr 14y ago

You know when, non-techie, ordinary people can't tell the difference between a designer and a backend engineer, right? The same applies to all other disciplines in life. Great three paragraphs while saying absolutely nothing insightful, cohesive, nor valuable.