Apple Inc (AAPL)

Believes this is as good a company as many others and should trade at a premium to the S&P 500 multiple on earnings. $115-$120 is where fair value is. Good things happen to companies that generate this much free cash flow.

Compared this with the QQQ-Q on a 3-year chart, and it showed Apple as a huge Outperform in 2012. Gap was closed in 2013, but is now again trying to outperform. Keep an eye on that peak in 2012, which seems to be the target for it. He would be careful. It could be a double top. You want it to clear the high of 2012, by at least 5% on a weekly basis, to confirm that it has broken out to new highs.

Thinks they are really changing their whole structure. Took over the music thing of Dr. Dre about a month ago. They are forming into some kind of an entertainment company, and is completely different than it was a year ago. They are now paying a dividend, and we have always known that when it comes to tech companies paying dividends; it means they don’t know what to do with their cash. Maybe there is not a big R&D component anymore.

It is his longest holding. It is cheaper than 90% of the S&P market. They are getting into music streaming. The stock can continue to do well, although not a 30% grower – more like 10-15% growth. Two new phones coming out could be a catalyst. The iWatch should help also. Continue to hold it until the new phones come out at least.

It appears that it just wants to keep chugging along. Great company and good products.

More of a value kind of stock and is with the Microsofts (MSFT-Q), Intels (INTC-Q), etc. Not an expensive valuation. They have been doing some financial engineering such as issuing bonds, paying dividends and buying back stocks.

(Market Call Minute.) He is a Seller. Had a nice rebound after its troubles last year. He questions how big they can get and how long they can sustain the margins they are generating today

Stock is splitting on Monday, and he sees no reason to buy it today because of that. The company has tremendous potential. Just unveiled some new software that he thinks will keep people further and further into the whole of the Apple system. Have increased compatibility among their devices. There are rumours today that iWatch has started for a September release, and it is almost inevitable that we are going to see a larger iPhone 6 in September/October, which will be a boon for their Christmas sales.

Forgetting about the balance sheet strength that they have, people are focused that they have no new products. What they do is invest their time and money in trying to think of where new opportunities may be coming, but they make sure their ecosystem and software is cutting edge. That keeps people using their technology and hardware. They are able to attract good talent to develop good products. Continue to innovate and have so many different ways to be part of your daily life. Trading at 14X earnings and is probably going to grow at about 10% per year.

Buy more Qualcomm (QCOM-Q) or go to Apple (APPL-Q)? Diversification is always a good thing. What percentage of Qualcomm makes up your portfolio? Without that info, he prefers to give just a broad answer to the question. Apple has lots of legs, and is being driven by a few things including first and foremost, innovation. There has been a lot of talk that innovation is dead at Apple. Looking back to the time between the interaction of the iPod, the introduction of the iPhone, followed by iPad, we are really not out of sync so much. Apple is primed for a very big jump if and when they come out with a product that in any way looks like it comes close to the iPod, iPhone and the iPad. If they do, you will see organic growth in earnings and cash flow and revenues rise dramatically. What will really drive the stock is that the multiples will rise because the confidence of the investors will rise to the point that they will be willing to pay more per $ of earnings, being a P/E ratio. Right now the P/E ratio on Apple is quite muted and could rise 25%, 30%, 50%.

This stock has gone nothing, but up since the announcement of the 7 for 1 stock split. By doing this stock split, the company has increased his model price by $120 billion.

This stock has been fantastic. Formed a little bit of a base in 2013 and then broke out. Since then it has been in a very nice uptrend. Technically speaking, the stock looks fantastic. There is a lot of probability of it going to $700 again.

A 7 for 1 stock split takes effect quite soon. Usually these don’t have much more than a temporal affect on stocks. The one thing that is really clear on the chart is that it is going up and to the right. This is what you want to see. Relative Strength is up there at 80 and the MACD is still positive. A little bit pricey. He has seen some price targets $650-$675-$700, so we’re getting close to the ballpark. If you are late to the game, you better be a 30 day investor/day trader.

Thinks $750 is the base value of what the company is worth, excluding cash on the balance sheet. You just have to give them time. Their competition is falling by the wayside.

Announced a stock buy back, increased the dividend and did a stock split of 7 for 1 which has given people some confidence the company is going to listen to those who want them to outline a capital allocation or a philosophy/strategy that will be shareholder and stakeholder friendly. This has given the stock some confidence. What matters here are new products. We can talk about how many phones they have sold, etc. but this is not the most important thing. New innovation and its acceptance by the public is the most important thing.