Apple has put critics to shame. What seems obvious – that any company making consumable technolust items, which appear to be close to fashion items, and that operates in a hit-driven business, simply can’t be worth hundreds of billions – has proved wrong. Apple has sustained this position too long. The fact the buzz is all about a watch that shakes up an industry that is hundreds of years old is of no matter. To make it worse for the dwindling numbers of doubters, the company is paying a dividend of 1.62% and has a normal, perhaps low P/E (price/earnings ratio) in today’s stock market of 16, meaning you could buy Apple for 16 years of profits. 30 P/E would be expensive, so on paper Apple is cheap. With a common 20 P/E Apple would be through the trilliondollar threshold.
Unless there is a big negative surprise heading comet-like to a stock market near you, the only way is up!
Clem Chambers, CEO of ADVFN, the leading stocks & shares website