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 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

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 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 TMO Headlines - Updated October 24th

Sun, 12:04 PM
MGG 628: Cool Stuff Found and The DNS Achilles Heel
Fri, 10:59 PM
Apple Pay Used to Buy $1M Aston Martin DB5 Luxury Car
Fri, 10:23 PM
Perpetrator of Friday's Internet Outage Comes Clean
Fri, 9:35 PM
macOS Sierra: Disable Auto-Logout if Sierra Enabled It
Fri, 6:26 PM
Apple Regent Street Opening Photo Gallery
Fri, 5:59 PM
Apple and IBM Partnership: Macs, iOS and Watson Are The Glue
Fri, 5:05 PM
Teens Steal $13,000 in iPhones from Natick Collection Apple Store
Fri, 1:41 PM
TMO Daily Observations 2016-10-21: iPhone 7 Fire, Microsoft Surface on the Rise
Fri, 11:22 AM
iPhone 7 Blamed for Car Fire
Fri, 9:00 AM
HYFY Pro 1-Year Plan: $25
Fri, 8:00 AM
King of the Hill Intro in Pixel Art
Thu, 8:19 PM
Eddy Cue Dampens Expectations for Original Apple TV Programming
  • __________
  • Buy Stuff, Support TMO!
  • Podcast: Mac Geek Gab
  • Podcast: Apple Weekly Report
  • TMO on Twitter!