Stock watch

Mac Format - - APPLE WORLD -

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

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