tirsdag 24. april 2012

Apples and the law of universal gravitation

Apple are just about to release their quarterly numbers, but haven’t everything already been said?

The gravitational pull have seemed not to affect Apple as its share price has crept up over 60% the last year, surpassing the total US retail sector when compared in total market cap. Question then needs to be asked if this is not just a mirage. Is the current Apple share price over-inflated compared to fundamental pricing laws?

Their recent announcement of dividends may also just have made bad to worse as it might just be the first sign of a fading star. Consider the enormous growth opportunities priced into the Apple stock. Paying out dividends at that scale indicate a significantly reduced ability to find profitable investments, and again a diminishing capacity to exploit their

On other fronts there has also been some set backs recently, both with import block and patent infringement claims. Nevertheless, nothing seems to indicate that Apple is in any danger of losing its position as one of the top players in consumer electronics. But the question is if they will be able to keep up their momentum going forward or if the apple will come back down and hit those sitting under the tree in the head.

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