Apple Inc (AAPL)

She tends to avoid the consumer products side on hardware electronics. This company has done a phenomenal job. She is always afraid of how quick consumers are to change their minds, and to go after new things. If you own, she would consider trimming back and getting out of the holding.

Sep 9^th is perhaps the day they have an announcement of a new iPhone. The challenge is the price. There is a challenge to sell a $600 phone to people in China. What is left in the company to drive them to a higher value?

(A Top Pick Aug 26/13. Up 45.52%.) Thinks Sept 9 is going to be a big deal. We are going to see some new products and are also going to see a new business or two. Thinks they still have the brightest and best research department in all of technology. Had more cash allocated to research over the last 2-3 years. If you don’t own, he would buy half now and half after Sept 9^th.

He has been a long time holder of this stock. Even though it is at an all-time high, if you look at the fundamentals it is not expensive. They are spinning off a tremendous amount of cash. Post Steve Jobs they have done a 180 in terms of capital allocation. Very, very shareholder friendly by buying back shares at a rate of about 6% float per year. This is an all round good investment.

The 7 for 1 stock split was surprising, and actually increases his FMV of his model price. Currently at $97.50 and his model price is $112.75, a 15%-16% upside. Sept 9 is the new product rollout of the iPhone 6 and maybe the iwatch. Yield of 1.93%.

Can’t disagree that they have great products and that they have executed incredibly well. Not an expensive stock. Make almost 40%-50% of their revenue from one product, the smart phone. Have not come out with any game changers for the last little while. Unless they come out with some game changing it is much more financial engineering they are doing, such as buying back stock and increasing their dividend.

This is a very event driven name. Tends to trade off around the time of a product release cycle, which always represents a great opportunity. Among the cheapest large caps given the cash on the balance sheet. Doesn’t think $120 as a target in 1-2 years is out of line.

Not a fan of this company. The old Apple under Steve Jobs was a revolutionary company. Under current management, it is an evolutionary company. The hand set business is a lousy business and has been so from day one.

Sometimes it is hard to stick with what is working. Just about to release a new iPhone. There is growth in the BRIC countries. They have the watch device. There is a JV to provide enterprise services. It is behaving very well and has strong dividend growth and strong free cash flow. Great balance sheet.

(A Top Pick July 17/13. Up 61.67%.) Had a 7 for 1 stock split. Thinks the market has refocused. Has gone from euphoria when the iPhones were being introduced, followed by the doldrums when people were pricing the company for extinction. We are now moving back towards the euphoria phase with a new product cycle that is about to hit us. There will probably be an iWatch. Have returned $78 billion to shareholders in the last 1.5 years. Have another $50 billion or so, to satisfy their commitment. Thinks the stock can go higher from here. Still represents excellent value.

We are now looking at 1.25X PEG ratio, which is not expensive, but not cheap anymore either. Not sure if you should make a new purchase at this time. He would wait for a pullback.

Really positive on the stock. The split is helpful. New phone and potential new products. Generally thinks it is due for a good refresh cycle. Great balance sheet.

She got out of it because the handset business was commoditized. They split their stock and are buying some back. There is some momentum on the release of new products. Don’t buy because it is close to all time highs. The old tech stocks are rather mature so she recognizes that much of their growth is behind them. Social media stocks are hard to buy for a value investor.

Google (GOOGL-Q) or Apple (AAPL-Q)? Given this choice, he would pick Google. On a balance sheet level, etc., they are very similar. Google is a software company whereas Apple gets about 60% of their revenue off of one product, the iPhone. There has not been a real product from them for a long, long time. Also, this company has gone up a lot more, but that has to do more with financial engineering, as opposed to anything else.

They did the stock split. 20% upside to get to its model price. iPhone 6 is coming with two different sized screens. He already got in. It is consolidating here.