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May 16, 2013

Apple Inc. (AAPL) Stock Charts

Filed under: Analyst Opinion — Tags: — admin @ 10:52 am

Updated coverage of Apple Inc. as a HOLD candidate with a target price of $480 on May 16th, 2013

Coverage was started on August 20th, 2012, updated on October 26th, 2012, on November 13th, 2012, on January 15th, 2013

Investment Opinion

  1. Fundamental: The company is fair valued.(NEUTRAL)
  2. Technical: The price is volatile and range bounded between $380~$480.(NEUTRAL)
  3. Potential: There is no potential for the company to grow, however the company has stable income. (NEUTRAL)
  4. Trading: The average trading volume of the last 3 month is 16M, it is very easy to setup or dispose a position in this stock. (PASSED)

General Market Overview

The index is bullish as the 30 day moving average of 1,598.27 is above 120 day moving average of 1,517.33. The last cross over happened on Dec 28, 2012 with the direction of up.

The intermediate trend is bullish as current price is above 30 day moving average.

If the index is breaking down and goes below 1,614.21, we should consider it as a short term sale signal.If the index is breaking out and goes above 1,667.47, we should consider it as a short term buy signal.

Chart forS&P 500 (^GSPC)

Investment Overview

Apple Inc., together with subsidiaries, designs, manufactures, and markets mobile communication and media devices, personal computing products, and portable digital music players worldwide. Its products and services include iPhone, a handheld product that combines a mobile phone, an iPod, and an Internet communications device; iPad, a multi-purpose mobile device; desktop computers, such as iMac, Mac Pro, and Mac mini; portable computers, including MacBook Pro and MacBook Air; a line of iPod portable digital music and media players; and iCloud, a cloud service. The company also offers a range of software products, including iOS and OS X operating system software; server software; iLife and iWork application software; and other application software consisting of Final Cut Pro, Logic Studio, Logic Pro, and its FileMaker Pro database software. It also manufactures the Apple LED Cinema Display and Thunderbolt Display; sells a variety of Apple-branded and third-party Mac-compatible and iOS-compatible peripheral products, including printers, storage devices, computer memory, digital video and still cameras, and various other computing products and supplies; and Apple TV, a device that allows customers to watch movies and television shows on their high definition televisions. The company sells its products to consumers; small and mid-sized businesses; and education, enterprise, and government customers through its retail stores, online stores, and direct sales force, as well as through third-party cellular network carriers, wholesalers, retailers, and value-added resellers. It also sells and delivers digital content and applications through the iTunes Store, App Store, iBookstore, and Mac App Store. As of September 29, 2012, the company had 250 stores in the United States and 140 stores internationally. Apple Inc. was founded in 1977 and is headquartered in Cupertino, California.

938,649,000 shares of common stock issued and outstanding as of April 12, 2013

940,692,000 shares of common stock were issued and outstanding as of October 19, 2012.

939,208,000 shares of common stock issued and outstanding as of September 29, 2012

Technical Analysis

The stock is pretty volatile during last year. The current price range of AAPL is $380~$480.

Financial Position

Revenue of 2009, 2010, 2011, 2012 are $43B, $65B, $108B, $156B respectively. Income of 2009, 2010, 2011, 2012 are $8B, $14B, $26B, $42B respectively. The net assets value is $130B. The latest analyst estimates are 732 cents per share on the revenue of $35.25B for the quarter, 3977 cents per share on the revenue of $171.92B for the year, and 4411 cents per share on the revenue of $189.72B. The revision of estimation is down.

Revenue of the latest quarters are 28B, 46B, 39B, 35B, 36B, 54.5B, 43.6B, 35.3B(estimated), while incomes are 7B, 13B, 12B, 8.8B, 8.2B, 13B, 6.9B(estimated).

Pricing Model

The speculative value of Apple Inc. currently is 275B. Using the non-discount, non-growth model, the company would need 7 years to accumulate the value using its income. As no-growth of income is here to stay, this valuation is fair. A 8 year accumulation of income would give the value of Apple at $480 per share.

Disclosure: Investors are always reminded that before making any investment, you should do your own proper due diligence on any name directly or indirectly mentioned in this article. Investors should also consider seeking advice from a broker or financial adviser before making any investment decisions. Any material in this article should be considered general information, and not relied on as a formal investment recommendation.

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