Apple Stock is a "Buy"
When you get down to it, all you need to know is that Apple:- Is debt free;
- Has about $100 billion in cash;
- Is growing demand at a rate of 100%;
- And will be putting its cash to work in the future.
In fact, it's the sheer size of the cash hoard that makes this company so interesting. Apple has enough money to change entire industries just by its business demands.
Today, Apple has grown into the largest consumer of chips in the world. Their lineup of tablets, computers, and cell phones has grown to such a degree that the mobile computing trend that Apple launched and dominates is now the driver of chip designs for the future.
This is where I believe Apple will be putting its cash to work. Apple doesn't need to buy back shares or pay a dividend if it has a better use for that cash.
I expect to see Apple purchase chip designers and invest in its capacity to manage its product-line sourcing. I think its next major product will see its early product cycle kept in-house.
Meanwhile, the growth rates at Apple are simply staggering. iPad revenue increased by 100% year-over-year in the fourth quarter alone, while iPhone revenue increased by 133% year-over-year.
You can expect this to continue as Apple cranks out more unique and compelling products in the years ahead.
Action to Take: Buy Apple Inc. (NASDAQ: AAPL) (**)
Apple has the capacity to change the lifestyle of its consumers. While! Steve J obs is no longer around, his impact will be felt for years to come.
In a world of uncertain economic outcomes, Apple rises above the storm as a safe location to park capital. While it currently does not pay a dividend, that could change soon. Even if it doesn't, the rate at which the company is building up its cash hoard allows an investor a comfortable night's sleep. Apple is about as safe a company as you can invest in.
Let's pick up 50% of our Apple shares in the near future, with the rest entered as good-"til-cancelled around the breakout area of the latest earnings report. This should be retested at some point and will give a patient investor a good location to add to their long-term holdings.
(**) Special Note of Disclosure: Jack Barnes has no interest in Apple Inc. (NASDAQ: AAPL).
Apple has the capacity to change the lifestyle of its consumers. While! Steve J obs is no longer around, his impact will be felt for years to come.
In a world of uncertain economic outcomes, Apple rises above the storm as a safe location to park capital. While it currently does not pay a dividend, that could change soon. Even if it doesn't, the rate at which the company is building up its cash hoard allows an investor a comfortable night's sleep. Apple is about as safe a company as you can invest in.
Let's pick up 50% of our Apple shares in the near future, with the rest entered as good-"til-cancelled around the breakout area of the latest earnings report. This should be retested at some point and will give a patient investor a good location to add to their long-term holdings.
(**) Special Note of Disclosure: Jack Barnes has no interest in Apple Inc. (NASDAQ: AAPL).
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