Thursday, January 26, 2012

Is Apple cheap?

At the current P/E, it is cheap esp. if you consider their cash reserve. However, Apple will not have the same growth rate, so it is turning itself from a growth stock to a value stock with minor dividend. After one or two upgrades by the consumers, the current products will not be economically feasible for upgrades except to boost one's social status.

There are bright spots.

1. Apple Text Book. Imagine all students carry a iPad instead of text books.

2. Apple TV. It is a loser so far and it is a very risky venture. However, the potential is great. It could give all cable companies a run for the money.

3. While he iPad and iPhone are peaking in the hardware, the software and contents for these devices to access have no limit. From TV, we have witnessed how it helps the folks with autism. I can envision many similar applications.

4. Apple moves to Kindle's market.

The minus for Apple it has lost a visionary leader Steve Jobs, I hope he was not replaced by similar managers at Microsoft , who are responsible for Microsoft's lost decade without innovations.

-------

(c) TonyP4 2012. Written in 1/26/12. Last updated in 7/16/12.

Disclaimer:

Do not gamble your money you cannot afford to lose. Past performance is a guideline and does not guarantee future performance.

All my posts are for informational purposes only. I'm not a professional investment counselor. Seek one before you make any investment decision.

No comments:

Post a Comment