I’ve written extensively about Apple this past year. And, not without reason. Investing in the stock has been a very fun ride ($89 – $200 in a little over 6 months). The Company whether it be delighting users with new products or frustrating users with its mismanagement of the iPhone app approval process has managed to stay in the headlines and, as a result, remains a plentiful mine for content. Because Apple has a contentious group of zealous fanboys, let me start with my Apple Investor Disclaimer and then get on with the post. This is specifically for mac fanboys, so those who have an open mind and understand how one can have a differing views of a Company and the Company’s stock valuation, just skip the blockquote below.

I, the author of The Curious Investor, am currently long Apple stock. In fact, it makes up nearly 10% of

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Monday October 12, 2009

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AAPL, PWRM, GOOG, CSRH, C, CVAT, INTC, AQNM, IBM

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AAPL, Apple Inc. and GOOG, Google Inc.

AAPL and its wholly owned subsidiaries design, manufacture, and market personal computers, portable digital music players, and mobile communication devices, and sell various related software, services, peripherals, and networking solutions.

GOOG, a technology company, maintains index of Websites and other online content for users, advertisers, Google network members, and other content providers.

Arthur Levinson has resigned from GOOG’s board, averting a potential showdown with government regulators over his overlapping job as a director for computer and gadget maker

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Apple’s stock is fast approaching its 52-week high of $177.50 set almost exactly 1-yar ago and seems within striking distance of its all-time high valuation near $200.  I wrote at the beginning of the year about Apple’s intrinsic value and recommended buying the stock when it hit $89/share amid rumors of Steve Jobs’ declining health and Apple’s inability to continue to make hit products. The stock has appreciated almost 90% since and it would seem a good time to revisit the Company’s valuation.

My method of determining whether or not a stock is trading at a “value” is to determine the market’s implied valuation. Rather than attempt to model and predict a company’s operating performance, I use the current market value to back into implied growth rates. Then, I try to make a decision as far as how realistic the market implied growth rate actually is.

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Apple Inc. (AAPL) is expected to launch a tablet PC (netbook) targeting the Christmas season this year. It is reported that the Apple netbook will come with a touch-sensitive screen, measuring up to 9.7 inches diagonally and will be CD compatible, enabling music playback. Three Taiwanese companies -- Foxconn, Wintek and Dynapack -- are expected to be part of the deal. Internet connectivity brings the tablet on par with other netbooks such as those offered by Hewlett Packard Company (HPQ), Dell (DELL) and Asustek. However, the company’s ability to offer rich content distinguishes it from the others. Apple already offers music on its iPods. It is expected that the netbook will offer music, movies and video games, making it the ideal all-in-one entertainment device. Apple also intends to offer new services such as interactive booklets and liner notes. Several book publishers have expressed interest, ...

 

AAPL, Apple Inc.

SBUX, Starbucks Corp.

EXOU, Exousia Advanced Materials Inc, EXOU.OB

DrStockPick Watch List!

 

DrStockPick Watch List! for Wednesday July 22, 2009

 

My Picks for Wednesday July 22, 2009 are:

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AAPL, Apple Inc.

AAPL and its wholly owned subsidiaries design, manufacture, and market personal computers, portable digital music players, and mobile communication devices, and sell various related software, services, peripherals, and networking solutions.

AAPL sells its products worldwide through its online stores, its retail stores, its direct sales force, and third-party wholesalers, resellers, and value-added resellers. In addition, it sells various third-party Macintosh, iPod, and iPhone compatible products, including application software, printers, storage devices, speakers, headphones, and

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AAPL, Apple Inc.

SBUX, Starbucks Corp.

EXOU, Exousia Advanced Materials Inc, EXOU.OB

PennyOmega.com Watch List!

PennyOmega.com Watch List ! for Wednesday July 22, 2009

Our Picks at PennyOmega.com for Wednesday July 22, 2009 are:

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AAPL, Apple Inc.

AAPL and its wholly owned subsidiaries design, manufacture, and market personal computers, portable digital music players, and mobile communication devices, and sell various related software, services, peripherals, and networking solutions.

AAPL sells its products worldwide through its online stores, its retail stores, its direct sales force, and third-party wholesalers, resellers, and value-added resellers. In addition, it sells various third-party Macintosh, iPod, and iPhone compatible products, including application software, printers, storage devices, speakers, headphones, and various other accessories and peripherals through its online and

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The high video recording capacity of the newly launched Apple (AAPL) iPhone 3GS may come as a potential threat to manufacturers of low-cost camcorders. The phone comes with a 3 mega-pixel camera that enables high-quality VGA video recording in portrait or landscape, which can be edited on the phone itself and shared instantly through email, uploaded to YouTube or transferred to laptops.

We believe that Apple's iPhone 3GS, with its video recording capabilities, may have a negative impact on camcorder manufacturers. This apart, the company is also planning to include a camera with video recording capabilities to its "iPod Touch" series. The iPhone 3GS camera module is expected to be compatible with iPod Touch. At about $9.50, the module might add a tad to the price of iPod Touch but won’t make the product uncompetitive.

The iPod touch with enhanced video features would have a negative effect on

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Over the last year, “cash is king” has become the modus operandi for companies everywhere. In an environment where revenues are declining and credit markets are difficult to access, the conservation of cash is an important aspect of maintaining the business and living through the recession.

To gain a better view of the cash flow generation ability of a business, a lot of focus has been put on free cash flow and, in many instances, EBITDA in various valuations as price-to-earnings has become less and less meaningful in a market where earnings visibility is at a minimum and valuation multiples are volatile.

One aspect that many investors overlook, however, is working capital. Most retail investors view working capital as strictly current assets - current liabilities and view it as a glorified quick ratio. Working capital analysis, however, is much more useful than simply a measure of solvency.

If one defines working capital as current

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Generally speaking, I see myself as a value investor. Why then, would am I so often looking towards retailers and generally consumer facing businesses for my best investment ideas (see: A Retail Reversal and Irrational Retail Valuations)? After all, many of the best retail stocks are those that rely on growth to provide shareholder return. And, in the case of liquidation, the bulk of their assets are held in inventory and property* that are rarely liquidated at full value. Then again, Warren Buffett, a value investor if there is any, has made serious bets on consumer product and retail businesses like Coca-Cola (KO), CarMax (KMX), Wal-Mart (WMT), and Costco (COST).

* To be completely fair, significant value in property can often

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With all the recent hub-bub about “Wall Street vs. Main Street,” maybe its time investors start taking stock of what Main Street wants. After all, it’s consumer demand which ultimately drives those sales numbers that seem to have been in free fall. Warren Buffett once described his philosophy of looking for businesses with “wide moats” that protect their operations. Buffett was speaking of looking for enduring competitive advantages. Normally, we think of competitive advantages as traditional economic advantages - high switching costs or cost leadership.

But, in a market where consumers are pulling back and thinking long and hard about where to spend their hard earned dollars. The firms most likely to retain and capture market share are the ones which deliver more than economic value to their customers. Companies must deliver compelling value. Value is more than just low prices or high quality. It’s perception and experience. This is why

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