NASDAQ:AAPL

Apple Inc (AAPL)

333.43
-0.26 (0.08%)
as of Oct 5, 2026, 2:10:34 pm Market Open.
2021 watching
0
BUY

(Market Call Minute) Model price $542

DON'T BUY
His problem with this is that you get to the point of diminishing returns when you get too big.
BUY
Missed earnings expectations for only the 2nd time since 2003. He had expected a weaker quarter but not as weak as it was. When there is a new product right around the corner, consumers will hold back. Trading at a very, very inexpensive multiple. When you start to factor in the cash, it is trading very cheaply.
COMMENT
(Caller bought this at $159 sold his portfolio has a 25%-30% weighting now.) That weighting is a lot. Do you think you will have a 4 bagger again? If you think you are only going to make 15%-20%, then the risk/reward is beginning to outweigh the opportunity.
TOP PICK
Analysts are calling for a 30% earnings growth year over year, which he feels could be conservative. China has become a more and more important market for them and even though there is a slowdown, the demand for their products seems to be accelerating.
DON'T BUY
Good company and good product but he doesn't think you want to choose this as a good investment. He doesn't understand how the company can sustain the growth over the longer term. Thinks there are better opportunities elsewhere.
BUY
If you strip the cash off its balance sheet, this is trading at only around 10-11 times earnings. They keep coming out with new products, keeps innovating and keeps leading the pack.
TOP PICK
(A Top Pick Aug 22/11. Up 69.53%.) There is a lot of speculation about a smaller iPad coming out for the lower end of the market. Feels this is a very good strategy. It seems like there is no area of the market they don't want to go after. There is a new iPhone coming in September. Stock trades at 11X earnings and estimates have high teen growth rate in earnings for the next couple of years. Apple always seems to lowball and estimates and they like to beat them by wide margins.
COMMENT
Trades at a very fair PE of around 12X forward. Great place to be as long as they continue to grow but once you get over that mountain, as do all technology companies eventually, it’s a very long way down. Probably OK for another year or two but he doesn’t know.
TOP PICK
They are creating cash at such a rate that it is becoming a drag on the return on company fundamentals. Have a little over $100 billion in cash and are producing free cash at a rate of about $60 billion a year.
STRONG BUY
Have made very good progress on IOS 6 which will be coming out some time in July. Key to this company is the fortifying of the Echo System. Valuation of 12-13 times this year’s earnings is tremendously compelling.
PAST TOP PICK
(A Top Pick Dec 21/11. Up 78.05%.) He sold a $420 Put for Jan/13 and was obligated to Buy 100 shares for every Put he Sold until Jan/13. Hedged his position by buying a $380 Put, which meant he had to Sell Apple at $380. Doing this he got $20.50 Net credit.
COMMENT
Have done a good job so far, but just to revamp the iPhone and iPad be a defining moment. It should continue to do well for the next couple of years. They need to move the needle with bigger and revolutionary products, which he doubts they can continue to do without Steve Jobs. Good stock for the next little while with a probable dividend increase.
TOP PICK
Trading at 12X forward earnings, which is a multiple that is cheaper than the overall market. Expected long-term EPS growth rate is still 20%. This pullback represents a pretty good opportunity. Some near-term catalysts include Apple 5 (?) sometime this year as well as further expansion into China through China Mobile, the largest mobile operator globally.
DON'T BUY
Such an interesting company. Concern is that they have to continue to innovate. They have shown no signs that they can’t. But he prefers to own stocks that don’t have to continue to innovate to succeed. He likes the chips and Microsoft.
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