Pounding the Table on Apple's Shares...Again
publication date: Apr 28, 2014
author/source: Brian Nelson, CFA
Apple (AAPL) is a top weighting in both the Best Ideas portfolio and Dividend Growth portfolio. Need we say more? The company announced today that it is making preparations for a hefty bond sale to fund its stock repurchase program, a move that is driving the company's shares to 'break out' (more info). The company looks poised for rapid price-to-fair value convergence.
We think Apple is worth more than $700 per share on a split-unadjusted basis (more than $100 per share after the impending 7-for-1 split). The firm's 16-page report and dividend report have now been updated to reflect its improving technical/momentum considerations and recent dividend increase. Shown below is how the Valuentum Buying Index helped us time our entry and exit points in Apple in the Best Ideas portfolio. To provide perspective, we also include a technical projection anchored by our updated cash-flow-derived fair value estimate ($715 per share) at the high end of that range.
We are very pleased with Apple's performance, and we hope you are, too! Visit Apple's landing page >>
P.S. Don't forget Apple pays a hefty and growing dividend!