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It's a good time to buy 2015 Apple (AAPL) LEAPs at a $500 strike price, thinks Bill Miller, who...
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Friday, March 15, 6:17 PM ETIt's a good time to buy 2015 Apple (AAPL) LEAPs at a $500 strike price, thinks Bill Miller, who went on CNBC to make a bull case for the fruit company. Miller observes Apple now trades at a lower forward EV/EBITDA multiple than Safeway, Kroger, and H-P, and expects the company to "do something fairly dramatic on capital allocation." Others have also argued in favor of buying Apple LEAPs to gain leverage. The Jan. '15 $500 LEAPs currently have an ask of $45 (they rose sharply following Miller's recommendation).
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This news story has 23 comments:
Since then GOOG has gone to 814.30 and AAPL to 443.66. Thus, if you had sold 100 shares of GOOG on March 4, you would have saved $3,030, and if you had bought 100 shares of AAPL that day you would have gained $2,466. You would be ahead $5,496 in the last 10 days.
It looks to me like GOOG is beginning to get bad news, and Apple is beginning to get good news. If this trend continues they may meet around 600 and you would have an equal number of shares in the two TECH LEADERS.
Oh, one other thing.....AAPL has a P/E under 10 and GOOG over 25. Ask yourself, is GOOG 2 1/2 times better?
As Miller pointed out this morning on CNBC - AAPL and GOOG will earn (roughly) the same amount this year. GOOG is $800+ and AAPL is $400+ - so, to buy GOOG and sell AAPL you have to assume that GOOG will continue growing in order to double earnings before its growth falls to that of AAPL. That's a pretty stiff relative valuation metric. Hard to buy GOOG here instead of putting money into AAPL.
Now AAPL investors panicked because the insane profit margins they have generated in previous quarters might get dinged as they accelerate production and expand the product line.
One of the most famous brands on planet Earth and 130 plus billion in cash the PE should be over 20 and climbing in this market.
So when did Seeking Alpha become the (snarky) Register? Shouldn't these news releases "seem" like news rather than commentary? Individual contributors can snark all they want, but let's keep these news-like summaries a little more factual.
Some meager journalistic standards, please?
Getting cute with referencing Apple, is well, cute, but it's not "news." Not every "news" item on Seeking Alpha is cute. Which companies should you get cute with, and which shouldn't you?
Don't jump the shark, man. Please!!!
http://bit.ly/15Szn1R
For the most valuable (and perhaps most widely-praised) company in the world, Apple has a tremendous number of fans who show a persecution complex.
Long Apple, short AMZN.
friday Apple up and Google and Amazon down, nasdaq also down, for me that a good sign, money is returning to Apple.
Heavy long Apple
@ value tech: i assume you bought those when the stock traded near the recent lows, bcse looks extremely cheap to me, especially considering the time-value you hv got.
good purchase though.