Why Apple Stock Floats Above Problems
By Dana Blankenhorn:
A market-average PE for a fast-growing company will cause a lot of seeming trouble to go away.
Even with its recent run-up, Apple (AAPL) is selling at a market-average 13 times current earnings. Yet most here at Seeking Alpha and elsewhere expect those earnings to keep rising. Current estimates on the next fiscal year’s earnings are $47.26, which at its present $460 price could give a PE of 9.64.
Screaming buy. Absolutely screaming.
All of which lets investors ignore the company’s China problems, any setbacks in patent court, indeed any warnings from any quarter.
Meanwhile, the thermonuclear legal war goes on.
Apple had to temporarily remove items from a German online store, but that is a temporary expedient. Motorola does, in fact, have a permanent injunction against iCloud and MobileMe push e-mail services, and Apple isn’t having luck banning Samsung Android devices in Germany, either. (In case you’re wondering yes,
Investing, Long Term Investment, stock market | admin February 3, 2012
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