Expensive Apple?

[iGas]

Apple Inc. (AAPL)
Mkt cap 229.37B
P/E 21.39
(gross margin 29%)

Microsoft Corporation (MSFT)
Mkt cap 223.21B
P/E 13.17
(gross margin 86%)

Google Inc. (GOOG)
Mkt cap 153.38B
P/E 20.84
(gross margin 64%)

International Business Machines Corp. (IBM)
Mkt cap 162.28B
P/E 12.31
(gross margin 45%)

By the look of P/E & gross margin Apple shares seems to be a expensive to me. Apple have on thing going for it self is that they have products that people wants and growth potential, however profit margin is some what low compares to the other 3 tech companies indicates that Apple does not have a strong war chess to protect its self during downturn or to buy potential technologies/patents. (And such low profit margin suggests that Apple will not be paying dividend in the near future).

What are your though on this?

 

[darkxshade]

it is overpriced because of momentum... also why I wouldn't want to short it

 

[JS80]

Learn to analyze relevant info:

AAPL forward PE 15
Qtrly Revenue Growth (yoy): 48.60%

MSFT
Qtrly Revenue Growth (yoy): 6.30%

IBM
Qtrly Revenue Growth (yoy): 5.30%

 

[little elvis]

Apple Inc. (AAPL)


By the look of P/E & gross margin Apple shares seems to be a expensive to me. Apple have on thing going for it self is that they have products that people wants and growth potential, however profit margin is some what low compares to the other 3 tech companies indicates that Apple does not have a strong war chess to protect its self during downturn or to buy potential technologies/patents. (And such low profit margin suggests that Apple will not be paying dividend in the near future).

What are your though on this?

Err... Apple has about $45 billion in cash and short term investments. Sounds like a pretty strong war chest to me

 

[JS80]

Apple does not have a strong war chess to protect its self during downturn

Lesson2, net cash (cash minus debt):

AAPL $23.16B
MSFT $31.19B
IBM -$12.34B

 

[Gigantopithecus]

Learn to analyze relevant info:

AAPL forward PE 15
Qtrly Revenue Growth (yoy): 48.60%

MSFT
Qtrly Revenue Growth (yoy): 6.30%

IBM
Qtrly Revenue Growth (yoy): 5.30%

This. It's easy to grow when you start from nothing.

 

[lothar]

Apple Inc. (AAPL)
Mkt cap 229.37B
P/E 21.39
(gross margin 29%)

Microsoft Corporation (MSFT)
Mkt cap 223.21B
P/E 13.17
(gross margin 86%)

Google Inc. (GOOG)
Mkt cap 153.38B
P/E 20.84
(gross margin 64%)

International Business Machines Corp. (IBM)
Mkt cap 162.28B
P/E 12.31
(gross margin 45%)

By the look of P/E & gross margin Apple shares seems to be a expensive to me. Apple have on thing going for it self is that they have products that people wants and growth potential, however profit margin is some what low compares to the other 3 tech companies indicates that Apple does not have a strong war chess to protect its self during downturn or to buy potential technologies/patents. (And such low profit margin suggests that Apple will not be paying dividend in the near future).

What are your though on this?

You base your investment decisions on "P/E" and "Gross Margins"?
You might want to stick to buying S&P 500 index funds instead.

 

[Patranus]

it is overpriced because of momentum... also why I wouldn't want to short it

77% rise in profits while Google missed their mark.
Apple is the primer tech company.

 

[iGas]

You base your investment decisions on "P/E" and "Gross Margins"?
You might want to stick to buying S&P 500 index funds instead.

It is just a few things that influent my purchase decisions. Currently I only hold Canadian stocks (mainly energy & minerals) because the Canadian market is much more stable than the US market at the present IMHO.

My hunch is that Canadian tar sand & rare minerals are going to be in demand soon, because the Chinese demand for energy is still rising at a rapid rate. China also put a halt on rare mineral export (I think China produce 96% of the world rare minerals), thus leaving the gap for Australia & Canada to pick up the slack.

PS. I'm just voicing my opinion that Apple share are a bit high compares to the rest of the pack, suggests that it is likely to come down to a more par level.

 

[iGas]

77% rise in profits while Google missed their mark.
Apple is the primer tech company.

How many iPhones/iPads/... that Apple can peddle to the general public before the fad die?

 

[iGas]

Err... Apple has about $45 billion in cash and short term investments. Sounds like a pretty strong war chest to me

My bad.

 

[thepd7]

My thoughts are every product they have released in the last 3 years has been successful (wait...when was Apple TV?).

Seriously, the iPhone and any new iPod are instant hits and they have a loyal hippie I mean artist I mean pothead fanbase.

How could you not like this stock long term?

 

[JS80]

It is just a few things that influent my purchase decisions. Currently I only hold Canadian stocks (mainly energy & minerals) because the Canadian market is much more stable than the US market at the present IMHO.

My hunch is that Canadian tar sand & rare minerals are going to be in demand soon, because the Chinese demand for energy is still rising at a rapid rate. China also put a halt on rare mineral export (I think China produce 96% of the world rare minerals), thus leaving the gap for Australia & Canada to pick up the slack.

PS. I'm just voicing my opinion that Apple share are a bit high compares to the rest of the pack, suggests that it is likely to come down to a more par level.

Lol you're either a troll or you have no business investing in stocks

 

[Ms. DICKINSON]

Lesson2, net cash (cash minus debt):

AAPL $23.16B
MSFT $31.19B
IBM -$12.34B

+1

 

[thepd7]

How many iPhones/iPads/... that Apple can peddle to the general public before the fad die?

When it's the best product on the market? Unlimited.

 

[JS80]

When it's the best product on the market? Unlimited.

Pfff what are you talking about smartphones are a fad! Who will continue to pay $200 for a phone and $100/mo for the cell bill!?!? Everyone will go back to dumbphones and get MetroPCS for $40 unlimited!

 

[QueBert]

My thoughts are every product they have released in the last 3 years has been successful (wait...when was Apple TV?).

Seriously, the iPhone and any new iPod are instant hits and they have a loyal hippie I mean artist I mean pothead fanbase.

How could you not like this stock long term?

AppleTV is older than 3 years, but they're about to put out a new one which should go on to absolutely own sales wise. The original AppleTV was meh but the next version should continue their trend. No other company can do what Apple does, and I don't care what people attribute it to (stupid fanboys who don't know shit) no other company can do what Apple does. Seeing how a lot of American's are R-tards I wonder why no other tech company can pull out the feats Apple does. Apple ain't going nowhere but up, hell even if it's just a fraction of a percent sells of Mac's are going up even. The cycle will be this

1. Apple announces a new product (iPad for example)
2. Apple haters pick it apart, call it stupid and proclaim it will be a huge flop of epic proportions.
3. Apple sets records with the product release
4. Apple haters attribute it to people being tech illiterate and say they'll buy anything. - Too bad this didn't work for MS and the Kin.
5. Cycle starts over.

 

[Pliablemoose]

1. Apple announces a new product (iPad for example)
2. Apple haters pick it apart, call it stupid and proclaim it will be a huge flop of epic proportions.
3. Apple sets records with the product release
4.) Hedge fund managers with paid staff spread FUD over some aspect of Apple's new product(s) and drive the stock price down, shorting the stock all the way down.
5.) Apple continues to sell it's loved products and announces a massive bump in earnings yet again. Hedge fund managers load ou on depressed stock/options long this time and ride the stock price back up, making millions on the way down and up.
6. Apple haters attribute it to people being tech illiterate and say they'll buy anything. - Too bad this didn't work for MS and the Kin.
7. Cycle starts over.

Fixed that for you by adding a few steps. Apple is the most manipulated stock at the moment.

 

[iGas]

Lol you're either a troll or you have no business investing in stocks

Look what we have here, a smart ass financial adviser wannabe.

Read it a weep son

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