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Apple, Inc. is at it again and trading |
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at $404.30 per share. |
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Released on Monday, September 26, 2011, 8:00 AM ET
Pittsburgh, PA (SpeculatingStocks) - “An Apple a day keeps the doctor away” or so the old saying goes. Well make that doctor move out of Dodge with this stock.
Apple, Inc. (NASDAQ:AAPL) is at it again and trading at $404.30 per share (Friday’s close). Recent production estimates supported by Craig Berger indicate that Apple has a projected fourth quarter sales budget of some 7 million iPhone 4’s and a possible 23 million of iPhone 5—which has yet to be released to the markets—Christmas presents anybody? Berger has also placed a hefty estimate on the iPad at 17 million units. This total production will result in billions of dollars of revenue for the company.
Just last quarter Apple, Inc. reported sales of $28 billion dollars. But how are the other financials of Apple after the abdication of the legendary Steve Jobs? Surprisingly rock solid. The company released a net income last quarter of $7 billion dollars and with this they currently hold an Acid Test ratio of 1.284 which is substantial given the current global economy. But with Apple keeping enough cash and short term investments on hand to pay-off any and all of its short-term debts it’s no wonder they are one of the biggest financially solvent companies around the world.
Jobs has certainly instilled a conservative fiscal spirit within the company, allowing it to remain afloat and even surpass market predictions through-out the past decade. In fact, compared to other companies such as Canadian-based mobile phone producer Research in Motion--those responsible for the initial Blackberry phenomenon, has a current PEG of only 8.832 compared to Apples PEG of 39.276, dwarfing Blackberry.
The stock as a semi-separate entity seems to have stabilized and regained some profits after Jobs permanent leave of absence; currently, running a 52-week average of $273.68 to $404.50 per share with an EPS of 25.26. The stock is priced at approximately 15.85 times earnings, a healthy threshold especially for such a tech. giant as Apple. The stock's beta is at 1.31 and currently runs a market capitalization $374 billion dollars making it a mega cap. stock.
Overall, it’s looking good for Apple at the time being, apparently Jobs has 'left' the company, but can we really expect a man, whose pecuniary and market prowess rivals that of Warren Buffet and demotes Bill Gates, to completely let the company fend for itself? Most certainly not, as Bill took a back seat to Microsoft, Steven has simply took a step back as well.
All things considered at-least for the next 5 years, AAPL looks to be a safe place to hedge some money, with stable returns and a firm foundation, there are presently few things better.
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