Apple PE ratio Michael Holland

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    Posted: 12 November 2011 01:55 PM #1

    I don’t agree with Michael Holland. Maybe he has build his own great empire but that doesn’t mean he’s right.

         
  • Posted: 12 November 2011 01:59 PM #2

    condooms - 12 November 2011 05:55 PM

    I don’t agree with Michael Holland. Maybe he has build his own great empire but that doesn’t mean he’s right.

    Thanks for the insight.  rolleyes

         
  • Posted: 12 November 2011 02:12 PM #3

    petertje - 15 June 2011 02:56 PM

    http://tech.fortune.cnn.com/2011/06/15/michael-holland-on-apple-these-are-crazy-numbers/?source=yahoo_quote

    ^  A voice of reason here.

    This is what I’m going to do this week:

    1.  Call Cleveland Research (or whatever name they go by next week) and learn a little more about them.  They could be both blind and mute.

    2.  Send an “Attaboy” to Gene Munster for standing up to the CNBC Fudsters last week.

    3.  Send an email to Jim Cramer (maybe I’ll gift-wrap it with the offer of a new website that features his stock-picking track record, along with videos in which he admits to gaming the market)

    4.  Send an email to Tim Cook (1. Stock split.  2.  Speaking engagement 3.  Apple TV)

    It’s not part of my nature to do nothing.  It’s therapeutic to do something.

         
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    Posted: 12 November 2011 03:42 PM #4

    Mercel - 12 November 2011 06:12 PM
    petertje - 15 June 2011 02:56 PM

    http://tech.fortune.cnn.com/2011/06/15/michael-holland-on-apple-these-are-crazy-numbers/?source=yahoo_quote

    ^  A voice of reason here.

    This is what I’m going to do this week:

    1.  Call Cleveland Research (or whatever name they go by next week) and learn a little more about them.  They could be both blind and mute.

    2.  Send an “Attaboy” to Gene Munster for standing up to the CNBC Fudsters last week.

    3.  Send an email to Jim Cramer (maybe I’ll gift-wrap it with the offer of a new website that features his stock-picking track record, along with videos in which he admits to gaming the market)

    4.  Send an email to Tim Cook (1. Stock split.  2.  Speaking engagement 3.  Apple TV)

    It’s not part of my nature to do nothing.  It’s therapeutic to do something.

    A split or dividend would be nice…but I would settle for a ten billion dollar share repurchase to be completed within the next ninety days.  The ten billion is the free cash being generated in just a few months….wow.  Buying 25 million shares and putting them into treasury solves the option grant need for a while, spreads earnings among the rest of us ( assuming a buy at an average cost of 390 or so is a ‘good buy’? At a P/E of 13.92….. It is!) and would send a message to the Street…...we did this once; we may do it again and we won’t tell you in advance, so short us at your peril.

    Plus, it would be a TC kind of thing.  :wink:

    [ Edited: 12 November 2011 03:44 PM by Red Shirted Ensign ]

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    Posted: 12 November 2011 05:09 PM #5

    Red Shirted Ensign - 12 November 2011 07:42 PM
    Mercel - 12 November 2011 06:12 PM
    petertje - 15 June 2011 02:56 PM

    http://tech.fortune.cnn.com/2011/06/15/michael-holland-on-apple-these-are-crazy-numbers/?source=yahoo_quote

    ^  A voice of reason here.

    This is what I’m going to do this week:

    1.  Call Cleveland Research (or whatever name they go by next week) and learn a little more about them.  They could be both blind and mute.

    2.  Send an “Attaboy” to Gene Munster for standing up to the CNBC Fudsters last week.

    3.  Send an email to Jim Cramer (maybe I’ll gift-wrap it with the offer of a new website that features his stock-picking track record, along with videos in which he admits to gaming the market)

    4.  Send an email to Tim Cook (1. Stock split.  2.  Speaking engagement 3.  Apple TV)

    It’s not part of my nature to do nothing.  It’s therapeutic to do something.

    A split or dividend would be nice…but I would settle for a ten billion dollar share repurchase to be completed within the next ninety days.  The ten billion is the free cash being generated in just a few months….wow.  Buying 25 million shares and putting them into treasury solves the option grant need for a while, spreads earnings among the rest of us ( assuming a buy at an average cost of 390 or so is a ‘good buy’? At a P/E of 13.92….. It is!) and would send a message to the Street…...we did this once; we may do it again and we won’t tell you in advance, so short us at your peril.

    Plus, it would be a TC kind of thing.  :wink:

    When did Apple last do a share buyback and what was the $/share amount?

      thanks
        JohnG

         
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    Posted: 12 November 2011 07:32 PM #6

    Steve Jobs made Tim Cook swear to screw Wall Street and retail Investors. They dont care or they would have done something by now. 
    Thats the feeling i have learned to expect.

         
  • Posted: 12 November 2011 07:56 PM #7

    mstrmac - 12 November 2011 11:32 PM

    Steve Jobs made Tim Cook swear to screw Wall Street and retail Investors. They dont care or they would have done something by now. 
    Thats the feeling i have learned to expect.

    Huh?  Apple might be characterized as indifferent to retail investors but hostile?  I don’t think you have the evidence to back that up.

    Apple is not a WS favorite for reasons that are unclear to me. 

    Apple grows its business and profits like few others and it’s to blame for its valuation?  I think you’re looking in the wrong place to place blame.

         
  • Posted: 12 November 2011 08:14 PM #8

    I now see that this old thread was bumped by a newbie.  While I remove the hook from my mouth, I’ll put this on ignore.

         
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    Posted: 12 November 2011 09:12 PM #9

    We all agree what Apple must do to bring life into the stock.  I don’t think TC is worried about that right now.

    I am all in favor of delayed gratification and don’t mind if we hold under 500 for a 6 or more months.  I want to buy as much as possible in case we split or have share buybacks.  Both of which I now find very unlikely.  In three years it may be a different story.

    I think Apple has a plan for the cash and it does not involve share buybacks. 

    Patience my fellow investors as we will find ourselves shocked with events that will propel our stock in ways we never imagined.

         
  • Posted: 13 November 2011 09:47 AM #10

    Red Shirted Ensign - 12 November 2011 07:42 PM
    Mercel - 12 November 2011 06:12 PM
    petertje - 15 June 2011 02:56 PM

    http://tech.fortune.cnn.com/2011/06/15/michael-holland-on-apple-these-are-crazy-numbers/?source=yahoo_quote

    ^  A voice of reason here.

    This is what I’m going to do this week:

    1.  Call Cleveland Research (or whatever name they go by next week) and learn a little more about them.  They could be both blind and mute.

    2.  Send an “Attaboy” to Gene Munster for standing up to the CNBC Fudsters last week.

    3.  Send an email to Jim Cramer (maybe I’ll gift-wrap it with the offer of a new website that features his stock-picking track record, along with videos in which he admits to gaming the market)

    4.  Send an email to Tim Cook (1. Stock split.  2.  Speaking engagement 3.  Apple TV)

    It’s not part of my nature to do nothing.  It’s therapeutic to do something.

    A split or dividend would be nice…but I would settle for a ten billion dollar share repurchase to be completed within the next ninety days.  The ten billion is the free cash being generated in just a few months….wow.  Buying 25 million shares and putting them into treasury solves the option grant need for a while, spreads earnings among the rest of us ( assuming a buy at an average cost of 390 or so is a ‘good buy’? At a P/E of 13.92….. It is!) and would send a message to the Street…...we did this once; we may do it again and we won’t tell you in advance, so short us at your peril.

    Plus, it would be a TC kind of thing.  :wink:

    During the last AAPL conf call when asked about the cash TC said he was open to anything however the CFO chimed in, almost interrupted and said something along the lines of “I want to state that 54Billion of our cash is parked offshore”  That was pretty telling to me in that any thing that has to do with returning cash back will suffer a major tax penalty (+30% I believe) that frankly I don’t think aapl is going to accept.
    Given that I believe the only thing that would propel the stock forward is a split.  While it is basically a wash financially the perception is that the stock is cheaper.  Yes I know it does not make sense by anyone with a brain but I hear more and more about ceilings of 410, 420, stock is just too expensive etc.. from talking heads.  I am done myself trying to talk and convince people of valuation when compared to Goog, amzn etc.. as no one is listening; we have all been pushing this argument for quite some time and no one is listening.  If they won’t listen then we need to change the argument.  With a split retail trading will increase and while the actual trading volume would be minimal the volume coming out of their mouths to the media, analysts and their brokers wil be exponential given their size.
    In reality would really help retain aapl talent.  I’m not talking VPs but more the worker bees that write the code, test the products etc…  If their option holdings get effectively doubled or tripled they ain’t going nowhere which is only a goog thing.
    Apart from a split the most consistent factor that will support the stock is simply the amount of cash they do have.  As each qtr goes by and they put more and more money in the bank, the cash value versus the stock price is undeniably compelling and a virtual bulldozer incrementally pushing the stock forward which is something the P/E and growth numbers are failing to do.

         
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    Posted: 13 November 2011 09:49 AM #11

    I watched the video and was under the impression that Holland was bullish. From the comments on this thread, you’d think he wasn’t.

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    Throughout all my years of investing I’ve found that the big money was never made in the buying or the selling. The big money was made in the waiting. ? Jesse Livermore

         
  • Posted: 13 November 2011 09:58 AM #12

    wheeles - 13 November 2011 01:49 PM

    I watched the video and was under the impression that Holland was bullish. From the comments on this thread, you’d think he wasn’t.

    He was bullish last June.  Can’t say what he thinks today.  The Kindle comes out Tuesday, and then we can learn if Apple sells another iPad.  rolleyes

    I’m not worried, but some moron analysts are.

         
  • Posted: 13 November 2011 10:04 AM #13

    Here’s an article on the Kindle Fire.  I’m not impressed. 

    http://news.cnet.com/8301-13924_3-57323637-64/will-kindle-fire-kill-the-$500-tablet/

         
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    Posted: 13 November 2011 10:20 AM #14

    Mercel - 13 November 2011 02:04 PM

    Here’s an article on the Kindle Fire.  I’m not impressed. 

    http://news.cnet.com/8301-13924_3-57323637-64/will-kindle-fire-kill-the-$500-tablet/

    There’s nothing to be gained by racing to the bottom. The Windows PC market showed just how unprofitable a game that is.

    Where Apple differentiates itself is in the services that are provided via the iPhone and iPad, which are not easily replicated by hardware vendors.

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    Throughout all my years of investing I’ve found that the big money was never made in the buying or the selling. The big money was made in the waiting. ? Jesse Livermore

         
  • Posted: 13 November 2011 10:37 AM #15

    wheeles - 13 November 2011 02:20 PM
    Mercel - 13 November 2011 02:04 PM

    Here’s an article on the Kindle Fire.  I’m not impressed. 

    http://news.cnet.com/8301-13924_3-57323637-64/will-kindle-fire-kill-the-$500-tablet/

    There’s nothing to be gained by racing to the bottom. The Windows PC market showed just how unprofitable a game that is.

    Where Apple differentiates itself is in the services that are provided via the iPhone and iPad, which are not easily replicated by hardware vendors.

    Racing to the bottom.  Indeed.

    AMZN lends some credibility to the fractured 7” tablet market.  If there’s a market for the 7” tablet, they have the best chance to succeed with the Fire.  But who ever said Apple needed 90% of the tablet market to succeed?  I’m fairly sure of one thing:  The other 7” tablet makers are toast. 

    Like the other Kindles before it, the Fire hardware is likely to be underwhelming, but it will be competent.  And it only needs to be competent at $199.  It’s not Apple vs. Amazon anymore than it’s Hyundai vs. BMW.  And Starbucks didn’t go out of business when McD’s offered Mochas. 

    Wall Street “concern” is more manipulation than anything else.