trader889
Jan 26, 11:18 PM
You can't tell much about where a company is going by looking at P/E, as by definition, this is a backwards-looking statistic. All of the companies you mention are growing far more slowly than Apple, which is why their trailing P/E ratios are lower. This is sort of what you said, but it's worth clarifying that you can't necessarily compare P/E ratios between companies with vastly different growth rates.
True, that's why I like to look at the PEG Ratio (P/E to Growth). If we take the current price of 130 minus cash net of payables and receivables (approx $17 a share), you get 113 for the "enterprise" value of Apple. I'll give it a conservative $5/share earnings this year, for a P/E of 23. According to Yahoo, we have an estimate of 30% growth this year, so we are getting a PEG of less than 1 for this year. Less than 1 is cheap, HOWEVER, it doesn't mean it can't/won't get cheaper.
I'm long Apple, so I have a bias, but here are some things to think about:
1) Market is reacting to bad numbers for the ipod, supposedly bad numbers for the iphone, recession concerns etc.. Do you think Apple is not going to come out with anything new this year that can add to the bottom line?
2) Apple is opening up more new stores worldwide. I believe their average sales at the stores is about $4000/sq foot. Their first China store is opening up in Beijing this year (think Olympics). Also, despite some of the headlines about no China iphone deal, CEO of China Mobile (370 million subscribers) stated this past weekend in Davos, Switzerland "We've not started any formal negotiations with Apple. The door is open to all for discussions about fashionable phones". This pretty reiterates what Steve Jobs said. Also, let's not forget all the other countries that have no iphone deals.
3) $18 billion in cash. Let's say that this earns 2%. Comes out to about 30,000,000 a month or .03 per share in earnings just on interest. On the conference call, I think one of the analysts said that Apple is averaging about $1 billion a quarter in cash, although last quarter was killer when they added $3 billion.
4) 45% of Apple's revenues come from overseas. This will only get larger as they open more stores overseas. Unless we get a worldwide recession, overseas sales should help cushion any US slowdown. Also, all the US analysts keep coming up with their updates based upon their "channel" checks, does this include overseas channel checks? I doubt it. So be wary of what they say.
5) Personally, I think the Macbook Air was developed with Japan in mind. In previous conference calls, CFO said Japan was one of the weaker markets. As some of you may know, Japan loves small, ultraportable computers.
Feel to comment/criticize, but as one poster said, if you think Apple is finished as a company, sell. If you think the future still looks good, don't look at the price of Apple for 3 months or as Warren Buffet says, 10 years..lol.
True, that's why I like to look at the PEG Ratio (P/E to Growth). If we take the current price of 130 minus cash net of payables and receivables (approx $17 a share), you get 113 for the "enterprise" value of Apple. I'll give it a conservative $5/share earnings this year, for a P/E of 23. According to Yahoo, we have an estimate of 30% growth this year, so we are getting a PEG of less than 1 for this year. Less than 1 is cheap, HOWEVER, it doesn't mean it can't/won't get cheaper.
I'm long Apple, so I have a bias, but here are some things to think about:
1) Market is reacting to bad numbers for the ipod, supposedly bad numbers for the iphone, recession concerns etc.. Do you think Apple is not going to come out with anything new this year that can add to the bottom line?
2) Apple is opening up more new stores worldwide. I believe their average sales at the stores is about $4000/sq foot. Their first China store is opening up in Beijing this year (think Olympics). Also, despite some of the headlines about no China iphone deal, CEO of China Mobile (370 million subscribers) stated this past weekend in Davos, Switzerland "We've not started any formal negotiations with Apple. The door is open to all for discussions about fashionable phones". This pretty reiterates what Steve Jobs said. Also, let's not forget all the other countries that have no iphone deals.
3) $18 billion in cash. Let's say that this earns 2%. Comes out to about 30,000,000 a month or .03 per share in earnings just on interest. On the conference call, I think one of the analysts said that Apple is averaging about $1 billion a quarter in cash, although last quarter was killer when they added $3 billion.
4) 45% of Apple's revenues come from overseas. This will only get larger as they open more stores overseas. Unless we get a worldwide recession, overseas sales should help cushion any US slowdown. Also, all the US analysts keep coming up with their updates based upon their "channel" checks, does this include overseas channel checks? I doubt it. So be wary of what they say.
5) Personally, I think the Macbook Air was developed with Japan in mind. In previous conference calls, CFO said Japan was one of the weaker markets. As some of you may know, Japan loves small, ultraportable computers.
Feel to comment/criticize, but as one poster said, if you think Apple is finished as a company, sell. If you think the future still looks good, don't look at the price of Apple for 3 months or as Warren Buffet says, 10 years..lol.
gkhaldi
Oct 23, 12:43 PM
That's what makes all the rancor about this so funny. Depending on the reading of this EULA provision, Apple's limits are still as, or more, restrictive than Microsoft's.
But at least they are clear. And, last time I checked OS X wasn't far of the 99$ mark for a 5 instance home license. Compare that with Micro$oft:p :p
But at least they are clear. And, last time I checked OS X wasn't far of the 99$ mark for a 5 instance home license. Compare that with Micro$oft:p :p
digitalnicotine
Jan 31, 01:47 AM
@neko girl
Um... what? I mean what did you purchase? (looks cool) :)
Um... what? I mean what did you purchase? (looks cool) :)
Full of Win
Apr 11, 03:03 PM
I have a feeling the next version of FCP will be more affordable, something a bit more expensive than FCE is. And then Apple will K.O. FCE.
Haven't heard of any official live streams but maybe a rouge one will pop up on Justin.tv or ustream or wait for something official on Apple's site.
So basically, the new FCP is becoming the next FCE for prosumers and Apple is abandoning the professional market.
Haven't heard of any official live streams but maybe a rouge one will pop up on Justin.tv or ustream or wait for something official on Apple's site.
So basically, the new FCP is becoming the next FCE for prosumers and Apple is abandoning the professional market.
more...
NYC Russ
May 3, 08:51 AM
And yet prices in the Australian Apple Store are still 25% higher than the USA Store. How rude, Apple.
Top end 27" iMac = US$1999, or in the Australian Store, AUD$2299 which at the current exchange rate is about US$2500. Why should we pay more, Apple? If anything, we're closer to China so should pay less on shipping!
Whilst it's slightly better than yesterdays prices, I'm still seriously not happy.
I'd buy one if we got the USA prices.Does Australia have a VAT? The U.S. doesn't.
Top end 27" iMac = US$1999, or in the Australian Store, AUD$2299 which at the current exchange rate is about US$2500. Why should we pay more, Apple? If anything, we're closer to China so should pay less on shipping!
Whilst it's slightly better than yesterdays prices, I'm still seriously not happy.
I'd buy one if we got the USA prices.Does Australia have a VAT? The U.S. doesn't.
steadysignal
Apr 14, 08:32 AM
It's the mythical xMac! :p
can i has one?
:)
can i has one?
:)
more...
simon-says
May 3, 11:53 PM
Wirelessly posted (Mozilla/5.0 (iPhone; U; CPU iPhone OS 4_2_1 like Mac OS X; en-us) AppleWebKit/533.17.9 (KHTML, like Gecko) Version/5.0.2 Mobile/8C148a Safari/6533.18.5)
Kinda funny one of my lines just had it's eligibility for upgrade moved up nearly 5 months. Late September to next week, May 9th.
Kinda funny one of my lines just had it's eligibility for upgrade moved up nearly 5 months. Late September to next week, May 9th.
SciFrog
Nov 23, 02:58 PM
I also just joined. Let see what my '08 Octo 2.8 MP can contribute to our score/rankings:D
Make sure that once you have a passkey and 10 SMP untis folded you run bigadv units.
Make sure that once you have a passkey and 10 SMP untis folded you run bigadv units.
more...
Pillar
Apr 10, 11:34 PM
Hello
Apple 26.2
Apr 23, 08:35 PM
"If found, please call 408"...
Nice.
Nice.
more...
SilentLoner
Apr 14, 06:30 PM
Can anyone confirm if the battery life has improved?
alent1234
Oct 2, 11:35 AM
Nice explanation. It seems that the whole idea of cell towers is unworkable. You think it is bad in the cities? Even semi-rural areas have no coverage at all.
There has to be an entirely new technology for this, or the use of satellites or aircraft instead of silly towers. C'mon Apple, solve this problem.
or lobby your local government not to oppose new towers because a few idiots think it spoils the view
There has to be an entirely new technology for this, or the use of satellites or aircraft instead of silly towers. C'mon Apple, solve this problem.
or lobby your local government not to oppose new towers because a few idiots think it spoils the view
more...
silentnite
Apr 23, 10:36 AM
another unhappy marriage, can't we all just play nice.
ten-oak-druid
Apr 13, 02:14 PM
This is a false rumor. Absolutely no way will this happen.
First of all Google failed with their TV.
Second of all, it is much better to have the components separate. You can more easily pass the audio to a home entertainment system for surround sound. With a component built into the TV, you have cables going back in the other direction to the receiver. If audio and video both take the same path there is less change of them getting out of sync.
First of all Google failed with their TV.
Second of all, it is much better to have the components separate. You can more easily pass the audio to a home entertainment system for surround sound. With a component built into the TV, you have cables going back in the other direction to the receiver. If audio and video both take the same path there is less change of them getting out of sync.
more...
Dillenger
Apr 21, 10:21 PM
Little old Hung Sam ain't got a chance.
OhEsTen
Dec 1, 02:20 PM
You don't have a sign behind you that says "Hail Adware," do you? ;) :D
Perhaps he was offering to round-up fellow Mac-users to toil in Adware "sugar-mines"... lol :D
Perhaps he was offering to round-up fellow Mac-users to toil in Adware "sugar-mines"... lol :D
more...
tkermit
Mar 31, 12:53 PM
The OS needs to look rich in color.
That kind of sounds like something Bill Gates would say (http://www.youtube.com/watch?v=pP0_uN42P44). :p
That kind of sounds like something Bill Gates would say (http://www.youtube.com/watch?v=pP0_uN42P44). :p
sluthy
Jul 25, 09:37 AM
One of my mates has a wired MM, not a real fan of the ergonomics of the Apple mice (mouses? Please deities, let's not start that debate again :p). Start to cramp my hand a fair bit after 5 minutes, very fingertip stuff compared to my Logitech Cordless Optical (no numbers, just called that). It also takes a bit of practice remembering to lift your left finger when right clicking and stuff like that, and the marble annoys me a fair bit, especially scrolling long lists in iTunes etc. Don't practice it a lot though, it may get better with time.
emotion
Jul 25, 10:23 AM
This is great but I do have a question..
Since it's bluetooth and Apple says it works within 30 ft.What happens if you're in a starbucks and other people have bluetooth turned on ?
Will they be able to "hack" your Mighty Mouse?
You need to read up on how Bluetooth pairing works. The short answer is this doesn't happen. It'd be a slightly pointless protocol if the above could happen.
Since it's bluetooth and Apple says it works within 30 ft.What happens if you're in a starbucks and other people have bluetooth turned on ?
Will they be able to "hack" your Mighty Mouse?
You need to read up on how Bluetooth pairing works. The short answer is this doesn't happen. It'd be a slightly pointless protocol if the above could happen.
Apple OC
May 2, 12:25 AM
The perception was that he was not in charge for a few years. If he was in a mansion and not a cave he might have still have a bigger role than we thought. I don't think this will end Al Qaeda but it could slow them down for a while.
I agree ... the question now is ... what role did the people in that mansion play?
this story is just beginning
I agree ... the question now is ... what role did the people in that mansion play?
this story is just beginning
lbro
Apr 26, 12:45 AM
and going back to read the narrative... whats a gallapagos? apparently i discovered it but seem to not know what it is..
I think he means the Galapagos Islands were discovered by Charles Darwin (they weren't). The stuffed dog Bagel probably refers to the ship the HMS Beagle Charles Darwin sailed on when he went to the Galapagos Islands.
Chrmjenkins
I think he means the Galapagos Islands were discovered by Charles Darwin (they weren't). The stuffed dog Bagel probably refers to the ship the HMS Beagle Charles Darwin sailed on when he went to the Galapagos Islands.
Chrmjenkins
iqwertyi
Sep 17, 09:33 AM
I'm all set for Gran Turismo 5 now :D
http://i971.photobucket.com/albums/ae198/Ben_Dixon/003.jpg
Don't worry, your vision is fine. One of the wheels is for a friend at university.
How are these? I'm looking for a wheel for F1 2010 and GT5 (when they both come out).
I was about to purchase the G25 but these may do as well.
Does it have paddles?
http://i971.photobucket.com/albums/ae198/Ben_Dixon/003.jpg
Don't worry, your vision is fine. One of the wheels is for a friend at university.
How are these? I'm looking for a wheel for F1 2010 and GT5 (when they both come out).
I was about to purchase the G25 but these may do as well.
Does it have paddles?
Uragon
Apr 25, 12:39 PM
I've got a 2.5 yr old MacBook that is feeling stretched with Aperture. I've been thinking that an iMac / iPad combination would be a good replacement.
Anyone with experience in getting iPads to work with iMacs (specifically remote access)?
I have been thinking same, new iMac and the iPad 2.
Anyone with experience in getting iPads to work with iMacs (specifically remote access)?
I have been thinking same, new iMac and the iPad 2.
Eldiablojoe
Apr 26, 11:26 PM
How did I become Plutonius' most-likely-a-ww vote on the very first day? I've been a WW before, and a Special before, making me anything but a Villager would be pretty obvious.
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