An Apple a Day ---
Surprisingly there is no thread on AAPL though it has been mentioned from time to time. It had a classic long term rise to $700 about 15 months ago, then stubbed its toe as competition intensified and its high margins slipped. It dropped to under $400 last spring and has since made a comeback with initial success of its iPhone 5S and new iPads. It hit $570 in December and has since retraced to $532. An earnings release is due before the end of January.
Indications are that AAPL is in process of reversing its declining market share and margins. It has begun to successfully sell in Japan and is about to offer its wares to over 700 million potential Chinese customers when China Mobile (CHL) begins distribution shortly. AAPL is also gaining traction in industry where it is largely replacing the Blackberry, and is also increasing Macintosh computer sales as Windows interest declines. The January earnings release will not include CHL results yet.
Adding to all this, AAPL's below-market price-to earnings ratio,its generous and likely increasing dividend,its share-buyback program andits humongousand increasing cash hoard,offer what is likely a sterling opportunityfor a second chance, if you missed the first one, or a good place to add holdings.
Disclosure: I own shares.
Tags
Who is online
405 visitors
While on the subject of China, I detect another good opportunity in China Mobile (CHL). At 50.50 (+.69) its price is near a two-year low as it prepares to distribute the iPhone for the first time. Barron's MarketGrader rates it A+ in market value and has this to say:
Did I say the price-to-earnings ratio is just 4.33?
Disclosure:I am long CHL.
Don't forget other Apple doings like the Apple Store, iTunes, Apple Radio, and computers, where revenues and profits in the billions are also rising rapidly.
As reported by macrumors.com :