Apple Is Turning Green With Cash

NEW YORK (TheStreet) -- Autumn is my wife's favorite time of the year as she looks forward to watching the remarkable array of colors produced from trees turning color. If you haven't driven through the countryside gazing at the rainbow of colors, you have missed out on one of life's blessings.

For Apple ( AAPL) investors, one color is likely to stand above all others this fall -- green; green from all the cash it's producing. All signs point to acceleration of green cash production as well.

For years, Apple fans have known the level of quality that products bearing the iconic Apple logo brings. Now everyone knows how valuable the logo is. On Tuesday, widely followed branding consultant Interbrand said Apple has surpassed Coca-Cola's ( KO) as the best global brand.

Increasing to the number one position is just the latest recognition of how effectively CEO Tim Cook is leading Apple. Under Cook, Apple has already delivered record revenue and profits. With Apple stock trading near a P/E ratio of 11, revenue and profits clearly haven't been enough to satisfy investors.

Concerns over margins have been debated ad nauseum in the media while critics simultaneously have called into question Apple's ability to produce new and exciting products. Well folks, the numbers and shortages reported with Apple's latest 5S phone should quash all investor distress.

Chris Whitmore of Deutsche Bank reportedly believes the latest iPhones' margins are slightly larger than the already massive margins iPhones enjoy. Back orders for various colors of iPhone 5S are widespread, but the iPhone 5c is available.

For Apple, the initial sales' margins are comparable, but Apple's real magic is monetizing the user base. Once a new client enters the iSphere, he or she spends more money buying iTunes and apps. Everyone knows this, but there are nine million reasons for highlighting the fact.

Last week Apple announced nine million 5S and 5C iPhones sold in the first three days after going on sale. Some are new and some are repeat customers but, as a whole, investors can expect the cash printing press to continue unabated.

Apple has so much cash available, it could do a lot of things. For instance, it could buy Yahoo! ( YHOO) just to compete against Google ( GOOG) in search, and instantly become a worse-case for Google.

With an offer of $50 billion and memories of a failed buyout from Microsoft ( MSFT) not too long ago, Yahoo! investors might not be nearly as quick to turn away.

Yahoo! owns a significant stake in Alibaba, giving Yahoo! a major presence in China. China is increasingly turning into the most valuable market. At the same time, Google is now in the hardware business creating a collision course for both companies. Buying Yahoo! allows Apple further growth opportunity while bringing the fight to Google.

That's just one of countless options available to Apple for continued growth beyond the smartphone market. Another is expanding iPad sales. Just around the corner we should see the latest upgrades to the familiar tablets.

If Apple executes well through the critical holiday shopping season -- and there is little reason to believe they won't -- exceeding the $600 a share threshold within the next year is reasonable. It's hard to imagine why it won't.

At the time of publication the author had no position in any of the stocks mentioned.

This article was written by an independent contributor, separate from TheStreet's regular news coverage.

Robert Weinstein is an active trader focusing on the psychological importance of risk mitigation, emotion and financial behavior of market participants. Robert co-founded the investing blog StockSaints, where he writes a journal about his trading activity and experiences.

In addition to TheStreet, Robert also contributes to Real Money Pro, providing real-time trading ideas for stocks, options and futures.

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