By:
On:
In: Good company, Stock analysis
Tagged:
With: 0 Comments

Company name Apple Inc.
Stock ticker AAPL
Live stock price [stckqut]AAPL[/stckqut]
P/E compared to competitors Good

MANAGEMENT EXECUTION

Employee productivity Good
Sales growth Good
EPS growth Good
P/E growth Poor
EBIT growth Good

ANALYSIS

Confident Investor Rating Good
Target stock price (TWCA growth scenario) $103.08
Target stock price (averages with growth) $91.73
Target stock price (averages with no growth) $48.27
Target stock price (manual assumptions) $103.47

The following company description is from Google Finance: http://www.google.com/finance?q=aapl

Apple Inc. (Apple) designs, manufactures and markets mobile communication and media devices, personal computers, and portable digital music players, and a variety of related software, services, peripherals, networking solutions, and third-party digital content and applications. The Company’s products and services include iPhone, iPad, Mac, iPod, Apple TV, a portfolio of consumer and professional software applications, the iOS and OS X operating systems, iCloud, and a variety of accessory, service and support offerings. The Company also delivers digital content and applications through the iTunes Store, App StoreSM, iBookstoreSM, and Mac App Store. The Company distributes its products worldwide through its retail stores, online stores, and direct sales force, as well as through third-party cellular network carriers, wholesalers, retailers, and value-added resellers. In February 2012, the Company acquired app-search engine Chomp.

 

Confident Investor comments: At this price and at this time, I think that a Confident Investor can confidently invest in Apple Inc..

If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor. You can review the best companies that I have found (and I probably invest my own money in most of these companies) in my Watch List.

How was this analysis of Apple Inc. calculated?

For owners of my book, “The Confident Investor” I offer the following analysis (you must be logged in to this site as a book owner in order to see the following analysis). If you have registered and cannot see the balance of this article, make sure you are logged in and refresh your browser.
[s2If current_user_can(access_s2member_level1)]

In order to assist you in using the techniques of this book, the values that I used when calculating the Manual pricing above were:

  • Stock price at the time of the calculation: $95.33
  • Growth: 0.11
  • Current EPS (TTM): $8.99
  • P/E: 11
  • Future EPS Calc: $15.14
  • Future Stock Price Calc: $166.63
  • Target stock price: $103.46

[/s2If]
I hope that this makes you a Confident Investor.

By:
On:
In: Commentary
With: 0 Comments

Peter Dunn, a.k.a. “Pete the Planner” writes for USA Today and is regularly featured on CNN Headline News, Fox News, Fox Business and several syndicated radio shows. Pete began his career as a comedian and then decided his mission in life is to make you a millionaire. Here’s his story and advice to help you stop doing the things that are preventing you from the financial success you deserve.

By:
On:
In: Commentary
With: 0 Comments

If the economy remains strong, any fluctuations this year are likely to be short-term, emotional reactions from which the market will bounce back.

If earnings going to grow and the market were to stay flat, that just means the stock market is becoming a better value.

Why? Because when a company is earning more per share but the market is flat, investors are paying the same price for shares that are now worth more.

When the market is down, you can buy on sale

Most retirement investors use a strategy called dollar-cost averaging, even if they don’t realize it: They invest a set amount of money on a regular basis, no matter how the market is performing.

This strategy has benefits, and one of the biggest is that during down markets, your money goes further — you’re able to purchase more shares for the same amount of money.

Even when the market is fairly flat you’re still buying at a decent price, which will help you in the future when the market starts to grow again.

If you have extra cash, a downturn is an opportunity. If you have money on the sidelines (even as little as $500) or room in your budget to increase 401(k) or IRA contributions, you’ll want to look for opportunity in those market pullbacks.

Unless there’s some fundamental change in the market — something has happened — it’s a sentiment change, and that should be a buying opportunity for investors. This is especially true if you’re buying diversified vehicles, like index funds. As the market moves lower, you’re going to be getting some deals.

Take advantage by simply buying more of the index funds you already invest in or, if you’ve done some research and see value in a particular asset class, such as my Watch List on this site, add it to your investment mix.

Retirement investors should set a plan and stick to it, because day-to-day fluctuations matter very little over a long time horizon.

Even when you look at 2008, when we saw a big drop, the people who got hurt were those who got out of the market and then got back in when it recovered. Those who stayed put — and, in some cases, bought more — did well or extremely well.

Fidelity data show that investors who stuck it out between September 2008 and March 2010 saw their account balances go up by close to 22%, despite the market struggles. Those who fled the market at the end of 2008 or beginning of 2009 and stayed out through March 2010 lost an average of close to 7%.

Source: Why a losing stock market can be a win for investors