With 51 million iPhones sold in the most recent quarter, iDevices are everywhere. By contrast, BlackBerry (BBRY) sold 3.4 million. And when it comes to tablets, Apple is the only one making any money. The company has amassed $160 billion and cash. But everyone volunteers their opinion of how CEO Tim Cook should spend it. Heck, even without Apple's cash the stock would still be valued over $500.
So it's a little surprising that Apple's stock looks as cheap as it does. When Carl Icahn used the term "no-brainer" to describe Apple stock, he wasn't just blowing smoke. Tim Cook listened, and announced several weeks later that Apple had repurchased $14 billion of its stock.
After Apple stock dropped 8% on the company's January quarter earnings report, Tim Cook told The Wall Street Journal that said he was "surprised" by the decline, saying he wanted to be "aggressive" and "opportunistic." But if my suspicions are correct, Cook is going to have a few more opportunities to spend, and in ways that can only benefit long-term shareholders.Apple will report fiscal second-quarter earnings this month. If you've watched the patterns that I have, Apple's stock has tended to decline following an earnings release, regardless of whether the absolute numbers are good. Guidance has (according to some) always disappointed. Chances are, they may "disappoint" again. But after each plummet, the shares have bounced back, including a rise from $398 to Wednesday's close of $542.55. Tim Cook has remained aggressive with is share buybacks and dividends. Despite criticism, Cook has owned up to his promise of returning cash to shareholders.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV