-- Trades at 6x current cash flow plus they have $121 Billion in cash which is going to $130 billion.
-- Stock buyback will be a great return for shareholders at this point.
-- While Apple is down, everyone knows the cash story, capital gains. People were sitting on $300 billion in capital gains in 2011 alone on this stock and they want to cash in before the capital gain taxes go high from 15% this year to normal income tax rate
-- Apple is the no.1 retailer in terms of profitability, has recurring revenue from iPhones and Apps, has planned obsolecense, has very high return on capital and very high profit margins.
-- Put all these financial characteristics and business characteristics along with a stock trading at half the multiple of Coke (KO), and you have an excellent opportunity for great return.
Credit and Source: Bloomberg
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Teddi Knight fullyinformed.com