Stephen Coleman - Seeking Alpha 'Stephen Coleman' Tag RSS Syndication from SeekingAlpha.com SeekingAlpha.com http://seekingalpha.com/author/stephen-coleman Replacing P/E in Valuing Apple Stock http://seekingalpha.com/article/88230-replacing-p-e-in-valuing-apple-stock?source=feed 88230 The price earnings multiple (P/E) is an increasingly useless metric when valuing Apple Inc.’s (AAPL) stock price. The reason why is that Apple now uses subscription accounting. Therefore, Apple recognizes the sales and earnings of certain products such as the iPhone, Apple TV, Apple Care and others over a twenty-four month time frame. By deferring its sales and earnings on significant products, Apple’s understates the health of its business.

The truth about Apple’s health can no longer be found in its earnings report. The truth resides on the balance sheet by calculating the change in cash. We define “cash” as the sum of cash and cash equivalents plus short-term investments. This is the same way that Apple itself reports cash.

]]> Thu, 31 Jul 2008 07:03:36 -0400 Stephen Coleman The price earnings multiple (P/E) is an increasingly useless metric when valuing Apple Inc.’s (AAPL) stock price. The reason why is that Apple now uses subscription accounting. Therefore, Apple recognizes the sales and earnings of certain products such as the iPhone, Apple TV, Apple Care and others over a twenty-four month time frame. By deferring its sales and earnings on significant products, Apple’s understates the health of its business.

The truth about Apple’s health can no longer be found in its earnings report. The truth resides on the balance sheet by calculating the change in cash. We define “cash” as the sum of cash and cash equivalents plus short-term investments. This is the same way that Apple itself reports cash.


Complete Story »]]> AAPL Stephen Coleman Apple Is Worth More than Steve Jobs http://seekingalpha.com/article/86166-apple-is-worth-more-than-steve-jobs?source=feed 86166 I wish Steve Jobs a long and happy life. I thank him for all of the good that he has done. Sadly, others do not seem to feel this way. The New York Post yesterday joined the chorus of negative voices speculating that Steve Jobs is in ill health. This is pure speculation. But, the implication is that Mr. Jobs's demise would tank Apple's (AAPL) stock price.

I have lived through this before. I owned Apple in early August of 2004 when the company announced that Steve Jobs was taking a leave of absence. I still own it today. On July 31, 2004, Apple's stock price closed at a split-adjusted price of $16.17. When Apple announced that Steve Jobs was well in January of 2005, Apple's stock price finished the month at a split adjusted price of $38.45. During the six month "cancer scare," Apple's stock price rose 137.79%.

]]> Tue, 22 Jul 2008 09:20:00 -0400 Stephen Coleman I wish Steve Jobs a long and happy life. I thank him for all of the good that he has done. Sadly, others do not seem to feel this way. The New York Post yesterday joined the chorus of negative voices speculating that Steve Jobs is in ill health. This is pure speculation. But, the implication is that Mr. Jobs's demise would tank Apple's (AAPL) stock price.

I have lived through this before. I owned Apple in early August of 2004 when the company announced that Steve Jobs was taking a leave of absence. I still own it today. On July 31, 2004, Apple's stock price closed at a split-adjusted price of $16.17. When Apple announced that Steve Jobs was well in January of 2005, Apple's stock price finished the month at a split adjusted price of $38.45. During the six month "cancer scare," Apple's stock price rose 137.79%.


Complete Story »]]> AAPL Stephen Coleman Expecting Apple to Reach $300 in 2008 http://seekingalpha.com/article/70971-expecting-apple-to-reach-300-in-2008?source=feed 70971 I expect Apple's (AAPL) share price to reach $300 in 2008. Apple is around $147 today. I expect a gain of over 100% from today’s price. Keep in mind that Apple finished 2007 at $198.08. From there, the trip to $300 per share is over 50%. I have a core belief that informs my judgment: stock prices are made by earnings growth and public expectations. Earnings growth is my key metric. I believe that the earnings growth predicts the direction and the magnitude of a stock’s price change.

]]> Thu, 03 Apr 2008 02:13:32 -0400 Stephen Coleman I expect Apple's (AAPL) share price to reach $300 in 2008. Apple is around $147 today. I expect a gain of over 100% from today’s price. Keep in mind that Apple finished 2007 at $198.08. From there, the trip to $300 per share is over 50%. I have a core belief that informs my judgment: stock prices are made by earnings growth and public expectations. Earnings growth is my key metric. I believe that the earnings growth predicts the direction and the magnitude of a stock’s price change.


Complete Story »]]> AAPL Stephen Coleman Why Apple Inc. Will Hit $200 per Share in 2007 http://seekingalpha.com/article/30720-why-apple-inc-will-hit-200-per-share-in-2007?source=feed 30720 The Apple Stores, the iPods, the MacTel computers, the iTunes Music Store, the OS X operating system, Apple TV and the iPhone all deliver the great user experience those of us in the Apple world covet and demand. We know that excellence is on the way. We buy without pause. That is why Apple Inc. is going to deliver outstanding results this year and why the stock will hit $200 per share.

I bought Apple on February 20, 2004 for a split-adjusted $11.19. I still own it. Today, at over $90, I consider the stock a screaming buy. Why?

]]> Mon, 02 Apr 2007 00:01:06 -0400 Stephen Coleman The Apple Stores, the iPods, the MacTel computers, the iTunes Music Store, the OS X operating system, Apple TV and the iPhone all deliver the great user experience those of us in the Apple world covet and demand. We know that excellence is on the way. We buy without pause. That is why Apple Inc. is going to deliver outstanding results this year and why the stock will hit $200 per share.

I bought Apple on February 20, 2004 for a split-adjusted $11.19. I still own it. Today, at over $90, I consider the stock a screaming buy. Why?


Complete Story »]]> AAPL Stephen Coleman