posted by mark
on Wed, 12/19/2018 - 15:49
AAPL is down a good chunk today since the fed’s announcement of raising the key fed funds rate. This results in a 13.5 trailing PE. Are you kidding? I'm not sure if I'm living in Hershey PA - "The sweetest place on earth" (as they say about Hershey Corporation’s hometown)!
This company is fundamentally strong. I love when the market goes bonkers. Mr. Market has been very grouchy lately.
- Sales are still strong and sure, it's not going to the moon. There isn't any cell signal or internet connection on the moon anyway. Do you know many people in that eco system leaving for an Android or a PC? Come on! Those are as rare as a camel in NYC. I think it’s still a long term grower although its growth is going to slow down a bit. After the “teenage” growth spurt, they all grow at a more reasonable rate, but they still keep growing.
- The net incone is strong and trending well.
- They have been increasing their leverage to boost EPS. But...I say. Apple is still very conservatively financed given their loyal "fan base". In certain situations, it makes sense to add leverage. As papa bear says, “Not too hot and not too cool…….just right.”
- ROE is robust.
- Their trend in these metrics are strong and consistent over a number of years. Consistent fundamentals. Any good coach knows consistency is crucial.
I am sure Buffett is enjoying a sweet treat right now that was thrown out with the "bath water!" Hot dog!
I absolutely love those big Special Dark Chocolate bars..... How sweet it is.
