Yes, Apple's stock has fallen about 20 points in one day. The fall in the stock price is because sales of the iPhone 4 during Apple's fiscal fourth quarter fell short of analysts' expectations by 3 million units. But I'm not worried.
First of all, I bought AAPL stock a few times since May 2011, at prices ranging from 301.37 to 366.99. I own 6 shares. On the shares I bought at 301.37, I've already made about $86 per share (if I were to sell the stock at today's current price of $401.82, minus the trading fees).
But the real reason I'm not worried is that ever since Steve Job's passing and the release of the iPhone 4S, I cannot check my Facebook News feed without someone posting something about either Steve Jobs or the new iPhone. And all of those posts are positive. The iPhone 4S sold more than 4 million units in its opening weekend, breaking previous records. CEO Tim Cook says the company fell short of expectations because consumers were holding out for the release of the new 4S model. AAPL reassured investors that they are still expecting strong performance for the rest of the year.
One of the most impressive qualities I see in Apple, from a financial point of view, is that it has no debt. Instead, they've got a load of cash and assets. Its Return on Assets is 27.06% and Return on Equity is 41.67% and its P/E ratio is only 14.5. Because of the strength of this company, it is a good long-term investment. Like everyone else, I'm interested to see how Tim Cook will keep Steve Jobs' legacy going.
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