Apple
I get asked about Apple more than any other stock. As you all know I very rarely buy individual stocks for clients. While I may have an opinion on the company, this blog is not a "tout sheet" where we discuss individual equity picks. That being said, Josh Brown over at the Reformed Broker put out an interesting read on the name yesterday. Here's what he said:
"The company has just informed us that they plan to return $100 billion dollars to you, if you are a shareholder, over the next 36 months.
This is an unheard-of sum, the Exxon dividend-buyback combo of a few years back is the only corollary. This comparison is important because Exxon is not growing but it has treated you very well over the years if you simply sat back and collected your gains and payouts from the boring business.
There are muted expectations for Apple's growth rates and innovation prowess and profit margins. Everyone is aware that it is not 2006 anymore. The hot money is no longer in control of the equity and $300 billion in market cap has already been shed. People talk about this company as though it's dead. As Jay Yarow reminds us, at $43 billion in quarterly revenue, it is anything but. For perspective, Google does $50 billion in revenue for a full year.
I don't know if Apple's next product launch with be sexier than Samsung's. But I do know that it doesn't matter, not anymore. Negatives are well-known and small positives will be surprises now. There is still downside risk, but this is true of any stock so get over it."
I think for my clients a better way for me to incorporate Apple in their portfolios is to take a second look at technology ETFs in here like I mentioned yesterday. Also Apple is currently something like 12% of the QQQs so that might be a way to gain exposure to the name if you are so inclined.
*Long ETFs related to the S&P 500 and QQQs in both client and personal accounts. Certain clients hold legacy positions in Apple or have we have purchased it for them at their direction.
posted by CR English at 8:24 AM
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