Apple Inc (AAPL)

It was really beaten up. The iPhone is the largest part of their business. In the West, everyone who wanted an iPhone has one. However, in China, there is growth in iPhones. They are constantly innovating. They have lots of cash and a great history of raising their dividends. You definitely buy at these prices.

People frame companies. They think this one is a tech company, but he thinks it is a consumer entertainment company and a very good one. They are selling a consumer branded product. PE is 9 times with an enormous amount of cash and will likely increase the yield on the dividend. He expects a share buyback. He thinks there is tremendous upside here.

There is market risk. The company is not expensive, has a lot of cash and can withstand a lot of uncertain times. If we get a pull back, they will fall. Look for $90 to $120-$130 trading range over the next couple of years. He does not think it will grow.

It had struggles in the last year. He thinks they are getting off the dependency on selling a new phone to maintain earnings. There is massive cash on the balance sheet.

Has a low PE. The phone business is not going to be growing as robustly as people think. It is hard to get people to buy Apple in emerging markets, because it is quite an expensive product. However the company has a great balance sheet. They can increase the dividend and can buy back shares. He would like to see the numbers on their phones in the next couple of months.

He likes the company fundamentally. It is putting up 20%-30% growth numbers and doing extremely well. They are in the right market niches. He wouldn’t see any reason to worry about this one right now. There are still positive revisions in earnings and revenue growth is there. Good product cycles.

Likes this very much. It is not the crazy, volatile stock that Google (GOOG-Q) or Amazon (AMZN-Q) is. He would be a buyer of it in here. It is going to have a good year.

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.