Apple Inc (AAPL)

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.

He is excited that there are new products later this year that will move the needle. IPhone 6, for example. IPhone watch is going to come out. It will be popular. New Ipads and new Macbook. Technology in the phone will become an important part of payment technology.

Valuation is still compelling. The big knock lately was no new products. But with an increased R&D budget for the last several years and the greatest engineering team in the world, he believes we will see something before the end of the year.

(A Top Pick Feb 19/13. Up 18.21%.) This is still a tremendous franchise trading at a really low price. If you take the cash off per share, it is trading at around 9X earnings. He sees this being worth $700-$800.

It is a really hated stock. Generates a lot of cash flow. 8 times earnings so it represents great value. You need some innovation and new products for it to move. It’s hard to know exactly when that is going to happen. Thinks it will be in the next 12 to 24 months.

There was a dip, but it recovered quite nicely. They were busy buying back shares. His issue with this company is what is their next leg. If they penetrate the Chinese market, he wants to know what kind of margin they’ll get and the type of phone they will have.

Has been a little disappointed in the last couple of months. The issue he has is that everybody just focuses on the iPhone numbers now. They are not realizing there is a strong franchise under their very loyal clientele. They need to step it up with some advance product announcements in the near-term. Expects this will be pretty quiet for 4-5 months and you’ll collect a nice dividend.

Not a huge fan of this company. Don’t confuse a good company with a good product. The growth of the company has been so large for such a relatively short period of time that expectations are such that this will continue. Feels there is more downside here longer-term.

Turning out a ton of cash. 30% of their market cap right now is in cash and will be 40% within 2 years. They are going to have another kick at the can with a refresh cycle with iPhone 6. Upgrades will be close to double what it was for iPhone 5. In China, with China Mobile, they have just scratched the surface. They are in 16 cities there and by the end of the year they say they are going to be in 300. With all that said, the investment in this company is in innovation. 2.44% yield.