Apple on sale right now. 9 times 2012 earnigs ex-cash
I am recommending purchase of Apple here at just 9 times 2012 earnings of $50/share. With a recent 90% plus quarter of growth, iphone 5, new iOS, iTV and china mobile all as catalysts it is time to accumulate aggressively. Buy a slug here and again if we hit 550 and another slug if you are lucky to see 525 or 500. If we hit 475 go all in with everything. At 475 you back out 110/share in cash and get 365 which is slightly above 7 times earnings for this year.
I see 2013 earnings between $70 and $85/share. If Apple would stay at 475 you basically would own the stock for 5 times to as low as 4 times earnings! Is there some trick here? Not really. This is simple and the best opportunity I’ve seen in 10 years.
Even if you don’t get it cheaper then the 565 it is at right now you get 450/share ex-cash as your basis meaning you own the company for 9 times this years earnings and 6.5 times 2013 earnings on the high side or about 5.2 times on the low side. Amazing for a company coming off 118% and 94% growth quarters.
If this was a small enough market cap PE would have taken the company out already.
Happy investing. Thank you Mr. Market