I cover a variety of subjects through my articles on Seeking Alpha. They range from long equity picks to possible short positions, from dividend selections to Macro Outlook. One topic always tends to draw the most comments and that is anything that covers Apple (AAPL), even if it just tangentially. No stock incites more passion than the world's most valuable company. Up until two months ago, Apple bulls outnumbered the bears by at least a 10-to-1 margin judging from the comments left on these articles.
That has changed a bit as Apple has fallen from over $700 a share to around $525. Bears seem to have crawled out of the woodwork as the stock has pulled back dramatically over the last sixty days. Their main arguments seem to be centered around what they believe is margin erosion as pricing power comes down in the smartphone market and/or how Apple could be the next Nokia (NOK) if it misses a product cycle now that Steve Jobs is no longer leading the company. However, I have yet to see one of these bear market commentators that has had enough conviction in their bear thesis to actually short the stock. The bulls mainly countered with the fact the company sells at around 10 times earnings and is still growing revenues at over 20%.
I believe Apple has bottomed here and is a great long term value. I think the bears are missing what an incredible juggernaut the company is and what opportunity the company still has ahead of it. Rather than doing the typical and oft repeated fundamental case for the stock, I would like to provide a numerical overview that gives some perspective of what Apple is achieving and what possible growth lies ahead for this company.
Apple, by the numbers:
$121B: The amount of cash, cash equivalents and marketable securities Apple had of the end of October. To put in perspective, this is roughly the GDP of Vietnam which has 50mm people.
$40B: The increase in cash, cash equivalents and marketable securities from same month in 2011. This is approximately the GDP of Bolivia and Paraguay combined.
58mm: The amount of iPhone5s that analysts expected the company to sell in 2012 at launch.
$22mm: Based on consensus revenue estimates for FY2013, the amount of sales per hour Apple is expected to achieve this fiscal year.
$8mm: Based on the 36% margin Apple guided to on its last earnings conference call, this is amount of profit Apple will make per hour in this fiscal year.
2.07mm: The amount of iPads Apple shipped to China last quarter. This is an 80% increase over the previous quarter due to a settlement of a trademark dispute.
325: How many more phone carrier partners lowly Blackberry has over Apple in 165 countries versus the 114 countries Apple currently is carried in. This is a significant growth opportunity for Apple as it continues to add phone carrier partners.
45%: The amount the stock would have to appreciate to reach the $765 median price target held on the shares by the 48 analysts that cover the stock.
25%: The amount the stock has fallen since it reached a mid-day peak of $705 a share. This is the biggest drop for Apple since the financial crisis.
#1: Where Apple ranks on the list of the world's most valuable brands.