Search This Blog

Loading...

Thursday, November 10, 2011

What is different about AAPL?

Here is Cramer on Oct 6th, laying out Apple's fundamental thesis. Here is Cramer today.

What exactly changed, within a month time, to spark a shift?

On Oct 6th there was a thoughtful assessment on ecosystem, deep bench and the legacy Jobs left at Apple merited the stock to be a buy. Today, his thesis is that since Steve Jobs past away, its not the same company.  Cramer never addressed why its a different company to merit a shift.

Its kinda douche. (If only for the current superficial and lazy assessment, and of course the covering-of-his-behind by saying "its not even close to a sell".)

Facts are:

1. Analyst estimates for the pervious quarter were 32% above company estimates. (Apple beat their estimates by 28%.)

2. iPhone demand is strong. (And that is across the board, from sellouts on the 3GS to 4S.)

3. Rumors have always existed with AAPL, and the company performance always squashed them (not a defense from Steve).

4. AAPL is trading with a trailing multiple of 11.2, when backing out the cash. (In 3yrs it will have enough cash on hand equivalent to market cap. A very strong reason to start a dividend or buyback.)

5. Their deep bench are still in play.

So, can anyone tell me what has fundamentally changed with the company since Oct 6th?

No comments:

Post a Comment