Apple Inc (AAPL)

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.

Completely comfortable owning this. Doesn’t see any reason to make a wholehearted switch out of this and into something else. Thinks this is undervalued and that their dividend is going up. Their enterprise has grown at something like 65%. 1.8% dividend yield.

Reporting after the bell today. The valuation is just so compelling at 11.5X next year’s earnings. 8X if you strip out the cash. He probably wouldn’t be a buyer this afternoon just because you never know what you are going to get on the earnings. They continue to hit on all cylinders. Dividend yield of 1.8%.

He uses puts and calls to manage his position. It is starting to seem like a source of funds for a lot of people. He likes it here, though. The iPhone is selling well in China. At this price it is very attractive. He has been selling puts at $100 and has been keeping the premium.

1.9% dividend. He does not expect them to stop buying back shares. The dividend is low, but it is still a growth company. It is his biggest holding. He has no trouble with 10 times earnings.

He has always worried when you have to sell devices quarter after quarter. They moved toward more of an ecosystem of recurring revenue, e.g. iCloud and iTunes. iPhone 6 sales have been great, especially into China. A lot of the risk is suddenly out of the story.

There are a number of stocks like this one that have an expectational set up where management delivered, but expectations were higher. They have reset investor expectations. Give it a bit of time. He does not believe in averaging down.