Apple Inc (AAPL)

Chart shows some deterioration in the upward trend. Looks like it went into some kind of a parabolic top, but then broke down. One saving grace technically is support that comes in just below where it is right now. It will be interesting to see if it can hold this level. If not, the chart might be showing a head and shoulders top, and you have to watch that. If it breaks the current level by a couple of dollars, it will be a bad scene. If it holds, it might not be so bad for a trade.

By the numbers, this is a fantastic company. Cheap on a multiple basis, has lots of cash, and an activist investor kicking the tires from the outside. All of that is good. Has become a little discouraged because 50% of their business is the iPhone, and how do you grow iPhone sales. They have to market cars and automotive, to really move the needle next. Doesn’t think you need to own this.

They report late January and we will see then how they did during the holidays. The stock will be skittish over the holidays. Wait for the earnings. He likes it and thinks it is a very good valuation story at 11 times earnings. We are going to see a major refresh in 2016 into the summer and fall.

The valuation is low. They are buying back a ton of stock. The iPhone 6 and 6s are doing much better than previous versions even in year two. Don’t hang on too long because the growth rate will peter off. They want to triple the number of people working on the Apple Car.

(Top Pick Feb 18/15, Down 8.50%) Revenue and earnings are up 25% from last year, but there are concerns as to whether they will ever grow again. The stock trades as though the business was going to decline. It is one of the cheapest stocks. He thinks they will grow single digits this year.

This company is doing all the right things; buying back stock, issuing debt, etc. His model price is $166.93, a 41% upside. The balance sheet is growing year after year and cash is going up by the quarter. They have over $200 billion in cash. Dividend yield of 1.77%.

It is the eco system. Between iTunes, iCloud and Apple-pay, they are morphing into a company with recurring revenues. Massive cash on the balance sheet. Growth is far from over. It is not dependant on how many devices they can sell.

Apple is helping to create the ecosystems, which is allowing for the dramatic change in the way that consumers and businesses behave. We are going through a new technological revolution, and it is accelerating right now. This is an amazing company. Thinks it will be stagnant for a year, but it has a decent dividend yield.

He can’t say enough good things about the company. The stock chart is beautiful. Also, has one of the lowest price to earnings out there. Thinks we are in early days for this company. They have so many various facets to their business. Have done a great job of raising their dividend consistently.

They have products in the pipeline, and they keep on improving their existing platforms. A fabulous company and very undervalued. The company is worth at least $140. They have more cash than anybody else globally, and keep coming out with great products. Valued at about 10.5X earnings.

(A Top Pick Nov 25/14. Down 1.26%.) Valuation wise, this is extremely cheap. In terms of overall ecosystems/vertical integration, what other company in this space does both hardware and software. Feels this is just a stunning company.

This still represents good value. Over half of the company’s business is driven by the iPhone 6. He is looking for about 75 million units in the holiday season which will be very nice from an earnings and cash flow standpoint. Cash represents about a 3^rd of their total market capitalization.

Earnings were good. What he likes is that they are transforming themselves to a better, more sustainable model that is going to give them a higher valuation over time. Have $200 billion on the balance sheet. There is a lot here to like at a very cheap a multiple. Dividend yield of 1.7%.

He cannot find another company that has a share price that has gone up as much over 5 years that is at only at 13 times earnings. He sees more upside. They have lots of businesses. If they lost on the iPhone they will be gaining on the iPad, for example. The opportunity is in China as more and more users come online with smart phones. There’s lots of growth in that space as well.

He likes this. Trading at 12X earnings with still a mid-teens growth rate of about 15%. Trading below 1.0 PEG. Thinks it will continue to execute. Down the road, catalysts would be something like gaming console, their car, etc.