Apple's stock closed Thursday at $100.10 a share a new 52 week low. Their market cap is now less than 90 billion dollars soooo anyone wanna team up with Warren and buy a computer company?
You and your new business partner Warren Buffet can buy Apple Co. today for less than 100 Billion dollars. Here is what you get... for the low low price of $90 billion dollars. You get 4.5 billion in earnings (TT) growing at 25-35%. [maybe more!] and 27 Billion in current assets!
27 Billion!
You and your buddy Warren will get Apple for 61 billion dollars (88-27) which is effectively 13.5x trailing earnings. Why? you say are you and your partner Warren interested in this clearly suffering company (stock price down 50% YTD)?
- Sustainable world wide growth (at a significant discount)
- Unsurpassed brand loyalty,
- FAT margins (albeit narrower than historically)
- Best in class products (Mobile computing, Computers, Music Players)
Apple has finance all of its amazing growth over the last 8 years from available cash flow, so has no debt and the best employees in silicon valley
Realistically a takeover of Apple would cost significantly more than the current stock price and it's not like the world is flush in takeover capital right now. The point is that this is a crazy successful and strong company with huge prospects for the future. What multiple would you pay for Dell's 3% margin, GM's millions in losses, the entire finance industry's mystery balance sheets?
Writer is long Apple and loves his mother. You should love your mother but Apple is up to you. Do not suppose that writer is suggesting other than loving your mother. Your finance decisions are yours alone.
