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To: Swordmaker
Why is it that most stock analysts state the AAPL is actually UNDERVALUED?

Stock analysts?

Have you ever heard of stock analysts being crooked? IOW, have you ever heard of stock analysts hyping a stock, in order to gain from the sales of that stock? That's how a lot of stock bubbles are created. I'm pretty sure that, besides Apple, there are a lot of other stocks way overvalued. It ain't going to be pretty during the next stock correction or slew of bubbles that will be bursting. Apple is just the best known and biggest of the stock bubbles.

BTW, who does that Apple cash stash belong to? Is it discretionary money? It is "cash on hand" that can be spent as the Apple management wishes? So, again, who does that cash belong to?

YOU mention Amazon and it's earnings vs stock market valuation. But, Amazon is also a stock bubble, and earnings reflect the true value of the company. IOW, Amazon should not be valued as high as the stockholders have made it. Same with Apple. Yeah,for now, Apple's products are producing decent earnings, but the stock is still way overpriced. FACT is that, neither Apple nor Amazon should be priced so high. Meanwhile, Amazon has products that will be more productive in the long term than Apple's set of products. Amazon is in a business which has better long-term prospects than smartphones. Apple will eventually be less valuable than Amazon, while Amazon will still be a stock bubble but with a more reasonable expectation for a better future.
16 posted on 11/03/2017 5:34:12 PM PDT by adorno
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To: adorno
Have you ever heard of stock analysts being crooked? IOW, have you ever heard of stock analysts hyping a stock, in order to gain from the sales of that stock? That's how a lot of stock bubbles are created. I'm pretty sure that, besides Apple, there are a lot of other stocks way overvalued. It ain't going to be pretty during the next stock correction or slew of bubbles that will be bursting. Apple is just the best known and biggest of the stock bubbles.

There is no way that any stock analyst can cause a stock the with the number of AAPL's outstanding shares to go up by merely talking it up. You are completely delusional. Now you seem to think that ALL stock analysts are somehow working in concert to talk up one stock in particular? And they've been doing it for almost twenty years, building one company into the most valuable company in the world? That is really delusional, adorno

BTW, who does that Apple cash stash belong to? Is it discretionary money? It is "cash on hand" that can be spent as the Apple management wishes? So, again, who does that cash belong to?

Do you really not comprehend the concept of a corporation? A fictitious corporate (read literally "in the body") individual? The cash that Apple has belongs to Apple, no one else until Apple's board of directors makes the decision to distribute it to the investors. It does NOT belong to the investors who own shares of Apple Inc., which is obviously what you are getting at. . . but you are wrong. . . just as the investors do not have the right to walk into any Apple inc. properties and walk off with a stapler or an Apple computer sitting on a desk. It is not theirs. The Board of Directors can spend that money as they see fit for the benefit of the corporation. . . within certain explicit constraints of law.

YOU mention Amazon and it's earnings vs stock market valuation. But, Amazon is also a stock bubble, and earnings reflect the true value of the company. IOW, Amazon should not be valued as high as the stockholders have made it. Same with Apple. Yeah,for now, Apple's products are producing decent earnings, but the stock is still way overpriced.

There are certain acceptable and expected price/earnings ratios and some indicate what are termed "bubbles." Amazon's P/E is representative of a classic bubble. Apple's P/E is exactly in the normal range for it's industry. Ergo, it is NOT anywhere close to a bubble. Apple's forward looking P/E of 15 shows it is going in the other direction, not toward a bubble as you seem to think. Amazon is heading in the wrong direction, towards even more danger.

This demonstrates you really don't understand what you are blithering about, or you would never be claiming that investors making Apple at a P/E of 19.5 being a bubble. That is someone who is deranged making insane claims. A bubble is based on valuations with no justification for the valuation placed on the company. With Apple, one third of the valuation is in CASH. . . and another third in actual plant and equipment. . . but YOU claim its valuation is a bubble?!?!? Delusional.

Amazon has no products that are productive in the long run. The hardware they produce is designed to promote the sales of their retail goods and services, nothing more and is sold at a loss. They are a RETAILER who produces NOTHING; they retail other people's products with extremely LOW or non-existent margins, and pays ZERO back to their investors and never has.

Apple, on the other hand, produces actual hardware products, software, and services with high, close to averaging 40% margins, aiming for HIGH PROFITS and in addition pays its investors the biggest dividends in the market (they just passed Exxon in May 2017) having returned more than $220 BILLION to investors at the same time they have built a $269 BILLION cash reserve in just five years. No other business in history has done such a thing. . . and YOU, in your ignorance of financial matter delusions, claim Apple's undervalued stock price is a BUBBLE????!!!! YOU ARE TRULY OFF THE DEEP END.

17 posted on 11/03/2017 7:08:31 PM PDT by Swordmaker (My pistol self-identifies as an iPad, so you must accept it in gun-free zones, you racist, bigot!)
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