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Tuesday, July 19, 2011

AAPL is all out of bubble gum

A few points to take away from this report:

1. The momentum whores are going to comeback to AAPL soon. (With such a clear opportunity for revenue growth still very present from all their product lines, it is hard for them not to.)

2. The clear path of revenue growth opportunity will also drive the value boys back in. I did the math, and with this EPS under its belt and disturbingly awesome free-cash-flow growth, with an ex-cash trailing PE of 14.5, AAPL will have a stock price of 449. Basically, the value of its businesses are just TOO LOW!!!!

If the value boys and momentum whores comeback in, we can see AAPL have a trailing PE of 21 (w/cash) again very very soon.

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