Seeking Alpha

It's a good time to buy 2015 Apple (AAPL) LEAPs at a $500 strike price, thinks Bill Miller, who...

It'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).
Comments (23)
  • KenNagle
    , contributor
    Comments (283) | Send Message
     
    I think today is the day that Apple begins its comeback. Samsung gave its best shot and all that it could come up with after much hoopla is a silly looking phone that. Big bad Samsung showed that it while it is good at infringining on patents and copying it is no Apple.
    15 Mar 2013, 06:32 PM Reply Like
  • TruffelPig
    , contributor
    Comments (4069) | Send Message
     
    Lol, good I bought exactly those when Apple was at 420!
    15 Mar 2013, 07:09 PM Reply Like
  • TruffelPig
    , contributor
    Comments (4069) | Send Message
     
    946 of the 2015 $500 were traded today. I think the 2.5% gain were more responsible for the price gain. They did similar ups and downs for several days (I have them in my account and look at them). The $650 and $700 LEAPS were traded more!
    15 Mar 2013, 07:15 PM Reply Like
  • bgold1955
    , contributor
    Comments (1992) | Send Message
     
    People want to invest in aapl. They need a reason and I'm hoping for good dividends/buy back news this coming week.
    15 Mar 2013, 07:57 PM Reply Like
  • stevereid
    , contributor
    Comments (30) | Send Message
     
    Here is an investment strategy. GOOG is near it's all time high (hit March 5) at 844.00. Apple is near a yearly low of 419.00 hit March 4).
    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?
    15 Mar 2013, 07:58 PM Reply Like
  • Vegas Ben
    , contributor
    Comments (216) | Send Message
     
    No, it is not 2.5 times better. It is not even equal. That is why I own Apple shares and not Google shares.
    15 Mar 2013, 08:12 PM Reply Like
  • XRTrader
    , contributor
    Comments (609) | Send Message
     
    I agree.

     

    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.
    15 Mar 2013, 11:07 PM Reply Like
  • JUDOKA
    , contributor
    Comments (406) | Send Message
     
    Take a look at Friday's action.I believe money is starting to filter out of GOOG flowing into AAPL(up 11+ on the day and advanced to up 12.59 after market).Blew through first resistance at 134 and will test next resistance Monday at 445.Analysts still piling on,but now a few brave souls are bucking the trend.
    16 Mar 2013, 10:44 AM Reply Like
  • f16flyer1983
    , contributor
    Comments (150) | Send Message
     
    A realistic PE of 13 puts the stock over $600 ...I remember when Google missed several quarterly CPC numbers and investors panicked and the stock dropped.

     

    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.
    15 Mar 2013, 09:32 PM Reply Like
  • JohnnyHands
    , contributor
    Comments (41) | Send Message
     
    The "fruit" company?

     

    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?
    15 Mar 2013, 11:02 PM Reply Like
  • TruffelPig
    , contributor
    Comments (4069) | Send Message
     
    Journalistic standards in short paragraphs of news? I thought this was interesting.
    15 Mar 2013, 11:14 PM Reply Like
  • JohnnyHands
    , contributor
    Comments (41) | Send Message
     
    @ TruffelPig, you used the word "news." What does "news" mean to you? For me, it's the facts, not the opinions (unless they're quoting someone else's opinion, as news - which is totally legit.)

     

    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!!!
    16 Mar 2013, 01:25 AM Reply Like
  • Clay King
    , contributor
    Comments (727) | Send Message
     
    MY thoughts exactly! Or is the "editor" misinformed of Apple's business?
    16 Mar 2013, 09:19 AM Reply Like
  • SA Editor Eric Jhonsa
    , contributor
    Comments (764) | Send Message
     
    Sheesh, it's a Forrest Gump reference, nothing more:

     

    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.
    16 Mar 2013, 11:50 AM Reply Like
  • wiesje
    , contributor
    Comments (2394) | Send Message
     
    Apple had it's shake-out, the stock is now clean , it's stabilizing and bottoming. GoogLe feels toppy, the stock is long, it feels heavy, it needs a correction, but the stock which may well crack is AMZN, that stock is ready to get hit with some severe selling, all the indicators have turned negative as from Thursday, RSI, Stochastic and oscillator all pointing downwards.
    Long Apple, short AMZN.
    16 Mar 2013, 01:40 AM Reply Like
  • willemsfranky
    , contributor
    Comments (8) | Send Message
     
    When Apple was declining, the money went to Google and Amazon,
    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
    16 Mar 2013, 06:11 AM Reply Like
  • pjtacoma
    , contributor
    Comments (3) | Send Message
     
    Really liking the Jan. 2014 $450 calls I picked up last week at $33.50...
    16 Mar 2013, 11:48 AM Reply Like
  • ValueTech
    , contributor
    Comments (47) | Send Message
     
    I like to buy in-the-money calls, I am long the Jan. '15 410 calls at $70.
    16 Mar 2013, 12:42 PM Reply Like
  • wiesje
    , contributor
    Comments (2394) | Send Message
     
    @ pjtacoma & value tech: are you guys trading against the options by selling shares if you get in the money, or are you just considering as option-value increase play and/or outright Long ?

     

    @ 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.
    16 Mar 2013, 01:05 PM Reply Like
  • ValueTech
    , contributor
    Comments (47) | Send Message
     
    March 4, that's when the stock put in a low -or so I hope ;)-.
    16 Mar 2013, 11:17 PM Reply Like
  • TruffelPig
    , contributor
    Comments (4069) | Send Message
     
    420. Me hope so too.
    16 Mar 2013, 11:50 PM Reply Like
  • altaire4
    , contributor
    Comments (109) | Send Message
     
    I want me some more Apple fritters !
    16 Mar 2013, 01:52 PM Reply Like
  • Stockscreener
    , contributor
    Comments (5) | Send Message
     
    This is a site to view volume and volume oscillator chart analysis. This site provides leading technical indicator analysis and provides a great stock screener.
    24 Apr 2013, 01:08 AM Reply Like
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