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Forum List » Guru News and Commentaries Guru News, Stock picks and commentaries  
GAMCO's Haverty: Apple is a Cash Machine
Posted by: Dheeraj Grover
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Date: January 27, 2013 04:38PM
GAMCO's portfolio manager, Larry Haverty was on Bloomberg to discuss his views on Apple (AAPL). He thinks Apple is a cash generating machine and is priced very attractively at its current level after the big decline in stock price after the earnings release -- Apple is one of GAMCO funds' very big holdings. -- Apple stock at $460 is very cheap for a company that earns 70% in its operating assets. -- Projected revenue increase of 7% is not a bad rate of growth as compared to other consumer product. companies and putting into perspective that new products will be coming, this is a trough in revenue growth. -- Cash generation is just astounding at this company. Cash grew by $9 billion in the last quarter. Cash is now $137 billion and return on equity is around 33% with cash earning nothing which is 3x average American Corp. and sells at 6x cash flow, at 16% FCF yield. These are just too low of a valuation for the astounding cash generation that Apple has. -- Apple should think about repurchasing shares at this price. It is 16% return and next year will be 25% -- Lawrence will prefer buying Apple at these levels for his personal portfolio Credit and Source: www.bloomberg.com, Bloomberg TV Here is the video:
Re GAMCO s Haverty Apple is a Cash Machine
Posted by: vgm
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Date: January 27, 2013 05:12PM
A bit of common sense being talked on Apple for a change! Thanks for posting.
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