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Stephen Rosenman enjoys analyzing the financial health of companies, pointing out areas the market is either not recognizing or ignoring.
  • Investing Community Waking Up To Apple's Growth Story 0 comments
    Sep 6, 2009 12:19 PM | about stocks: AAPL
       The market is finally realizing that Apple's business is best reflected by free cash flow and non-GAAP earnings blogs.barrons.com/techtraderdaily/ ;because these reflect the high growth high margin iPhone business.  GAAP numbers, in contrast, miss it all seekingalpha.com/article/132536-apple-s-....  I've seen analysts one after another wake up to this story that I've been trumpeting for two years now seekingalpha.com/article/61426-apple-s-e....  Who ever saw a large market cap company nearly double its FCF and non-GAAP year over year as analysts and bloggers put "sells" on the company?   Apple accomplished this feat in the middle of the largest recession/depression since the '30s.  It shows the power of hysteria in taking down Apple from 200 to 78 (through investors listening to "The Theater of the Absurd") while ignoring the company's explosive growth.  Word of caution: the naysayers are still out there.




     FCF: 2006 - 1.56 billion; 2007 - 4.7 billion; 2008 - 8.5 billion; TTM - 10.2 billion (Morningstar).

     Non-GAAP Revenue: 2006 - 19 billion; 2007 - 24 billion; TTM - 42 billion.
     Non-GAAP Profits: 2006 - 2 billion; 2007 - 3.5 billion; TTM - 8.3 billion.


    (Non-GAAP Revenue and Profits for 2008 are not listed because Apple did not break them out.  I've used GAAP revenues and profits for non-GAAP  2006 and 2007 because either the iPhone did not exist (2006) or was too small an amount to be substantive (2007).

    Long Apple.
    Stocks: AAPL
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