The Mac Observer

Skip navigational links

You're viewing an article in TMO's historic archive vault. Here, we've preserved the comments and how the site looked along with the article. Use this link to view the article on our current site:
Stock Analyst: AAPL Under Valued Due To Cash On Hand, Innovation, & Performance In Tough Market

Stock Analyst: AAPL Under Valued Due To Cash On Hand, Innovation, & Performance In Tough Market

by , 2:00 PM EDT, September 27th, 2002

According to Forbes Magazine, a stock analyst with Ragen MacKenzie is saying that Apple is currently undervalued. The analyst, Jonathan S. Guerkink, is saying that Apple's cash reserves, ongoing innovation, and a slight sales increase for 2002 "in a rough market" make Apple's market capitalization of US$5.3 billion too low. From the Forbes piece, titled "Makers & Shakers:"

Tasty Apple The personal computer industry is gasping for breath, still in the midst of a two-year-long bear hug. One in the squeeze is Apple Computer. The company has gone boom and bust several times, and the stock is down a third thus far this year. But it boasts $4 billion in net cash (cash and short-term securities, less debt of $316 million). That makes its market capitalization of $5.3 billion too low, says Jonathan S. Guerkink, an analyst at Ragen MacKenzie. You should buy in.

Apple has been and remains an innovative company, and it enjoys a loyal base of customers in creative fields like publishing and graphic design. Guerkink estimates that Apple, which remains profitable, will close the September fiscal year with $5.7 billion in sales, a 7% jump in a rough market.

You can read the full article at Yahoo!'s Web site, though the rest of it deals with other companies. As of this writing, AAPL is trading at 14.79, up 0.09 (+0.61%), on light volume


If you are interested in Apple's stock, join our forum members in the Apple Finance Boards, a moderated forum for Apple Investors and people who are interested in Apple's financial dealings. For other stories regarding Apple's stock activity, visit our updated Apple Stock Watch Special Report.

The Mac Observer Spin:

It's always refreshing to see someone on Wall Street publicly say what many AAPL followers know: Apple is doing a good job in a harsh market, and the company's hoard of cash makes today's stock price a good buy. It seems simple, but Apple's stock has languished at current values for months.

Recent Headlines - Updated October 21st

Tue,8:51 PM
GTAT Announces ‘Amicable Parting’ of Ways with Apple
6:50 PM
How I Came to Own and Sell a TAM Probably Owned by Jony Ive
5:01 PM
Adobe KnowHow: Learn Photography From The Best for $29.99
4:49 PM
How To Get Ready For iOS 8.1 [Update]
2:59 PM
Chuck La Tournous and Chris Breen to Speak at NJMUG’s 30th Anniversary Tuesday
2:24 PM
Don’t Upgrade to Yosemite or iOS 8.1 Before You Read This Column
2:06 PM
TMO Daily Observations: 2014-10-21
12:29 PM
How Apple Pay Mitigates Breach Fatigue
10:50 AM
How to Enable Apple’s SMS Relay on your Mac or iPad
9:43 AM
Apple Earnings Smackdown Ranks Analyst Predictions
Mon,9:52 PM
Apple Q4 Earnings Sliced And Diced
8:21 PM
Apple Q4 MacBook Sales Hit Record Breaking Numbers, Jump 25 Percent
  • __________
  • Buy Stuff, Support TMO!
  • Podcast: Mac Geek Gab
  • Podcast: Apple Weekly Report
  • TMO on Twitter!