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February 17, 2007

Why Apple is a buy

Apple(aapl)


When people think of stylish products, innovation and COOL, APPLE is the company that comes to mind. Six years ago apple introduced the I-Pod, it was instant hit sending the stock from a low of about $10 to the just recent high $96. Apple's Steve Jobs is a tremendous innovator and leader. Everyone from Main Street to Wall Street respects him. Recently, Apple introduced the new i-phone.

The stock was trading at$82 and with the announcement it jumped to almost $98. The next day, the stock saw a huge sell off taking it back to around $84.

In my opinion the stock was oversold. There was one reason the stock should be at that level and its the SEC investigating Jobs on options backdating. He and apple have power and this issue will be solved. The i-phone will be huge success.

Valuation
The stock is trading at 30 times earnings with an earnings growth of more than 75%. Its operating margins are well over 10% and the fact that it has absolutely no debt makes me love the stock even more. Jobs and apple deserves to be trading at a premium of more than 40. Their innovation and image will drive the company to new heights.




To find out more information on AAPL visit the websites below, you will also be able to track the companies stock price and recent upgrades and downgrades:

Apple Company Website.
Stock Price and Key Statistics.

Copyright © Eric Medina




Posted by eamed at February 17, 2007 03:38 PM

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