The Mac Observer

Skip navigational links

IdeaInvestor Labels Apple "Diamond In The PC Rough"

by , 4:15 PM EST, March 21st, 2001

Kenneth A. Toudouze, CFA, of IdeaAdvisor.com is called Apple a "diamond in the PC rough." The analyst cites Apple's very low P/E ratio compared to the rest of the industry and some other factors to say that Apple offers a good investment opportunity. In Mr. Toudouze's search for top tech picks in the S&P 500, and Apple placed the highest of all the tech companies they found. According to IdeaAdvisor.com:

We've been looking for "value" technology names within the S&P 500. First, we used BASELINE to sort through the names; then, we evaluated the data, based on recent percentage change in earnings.

Our findings? Only five technology names made the Top 50 -- no surprise. And believe it or not, Apple Computer tops the list, coming in at number 11. (Energy, Utilities and Basic Materials names comprise the Top 10.)

We also looked at how Apple ranks, relative to its peers, in terms of free cashflow per share, because producing cash is optimal when the economy is slowing down. The results are published in the table that follows. 

Despite what one might think of its products, Apple may be a money maker if the downward trend continues. Its price, relative to free cashflow, is half of that of its closest competitors, IBM and Dell. 

Mr. Toudouze says that Apple bottomed out in December and seems to be forming a head and shoulder bottom. He pegs 22 1/4 as the price Apple will reach in "one or two" weeks. For those wondering, Mr. Touduoze is a CFA, which InvestorWords.com defines as:

An individual who has passed tests in economics, accounting, security analysis, and money management, administered by the Institute of Chartered Financial Analysts. See also Registered Investment Advisor, Chartered Financial Consultant, Certified Public Accountant.

Check out the rest of the article for a handy chart and additional information.

The Mac Observer Spin:

This pronouncement was based on technical analysis and not anything dealing with Apple's ever improving product line, Mac OS X, or other issues related to Apple's operations.

Recent Headlines - Updated February 6th

Mon,12:40 PM
Three Ways to Protect your Apple Watch (and One Way Not To)
Fri,5:30 PM
Ghostbusters Reboot gets its Own LEGO Kit
4:55 PM
Man Ties String to iPhone and Films Ski Run (Video)
4:45 PM
What To Do When Your Apple Watch Tells You NOT to Eat the Candy Bar
2:56 PM
‘Star Wars’ as a Grindhouse Trailer
2:29 PM
The iPad Pro and Apple Pencil Giveaway
1:26 PM
Apple to Supreme Court: You can Skip Samsung’s Patent Appeal
1:16 PM
TMO Daily Observations 2016-02-05: Streaming the Super Bowl, Time Machine’s Failure
10:57 AM
Want to Watch the Super Bowl on Your iPad for Free? There’s an App for That
9:33 AM
Final Cut Pro X Adds 4K Video Export for Apple Devices
8:55 AM
iOS: That Stupid [Bleep] Siri and Its [Bleep] Nicknames
Thu,10:20 PM
Apple to Accept Some Cracked Screens in iPhone Trade-in Program and Install Screen Protectors
  • __________
  • Buy Stuff, Support TMO!
  • Podcast: Mac Geek Gab
  • Podcast: Apple Weekly Report
  • TMO on Twitter!