Andy Zaky

3 Stocks Poised to Move on Tuesday

Seriously. Why do you writers continue to compare GOOG, RIMM and AAPL by looking to their P/Es? Can you answer that question? Have you heard of P/FCF at all? Do you realize that Apple defers revenue it receives from iPhone sales an recognizes the revenue ratably over a 24-month period? What if Apple deferred all of its revenue? Would you still use Apple's P/E to compare it to other companies? Think about it. If Apple only recorded $1 billion in revenue because it decided to defer all of its revenue, but produced $4 billion in free cash flow (4x the revenue) would you still be inclined to look at Apple's P/E as if it meant anything? Obviously not. So why do you do so when Apple defers a large portion of its revenue each quarter? It's because you know nothing about stocks, fundamentals and finance and probably shouldn't be writing anything ever.