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Why Everyone is Afraid of Apple

finance.yahoo.com

1–10 of 87 posts

Re: Why Everyone is Afraid of Apple

#2

      if you wanted to buy the entire company it would 
      cost you about $240 billion.

      To put that in context, for the same amount of money 
      you could own Newmont Mining Corp. (NYSE: NEM - News), 
      the world's largest gold-mining company,

      And E.I. Du Pont de Nemours & Co. And Kellogg Co., 
      And Shrek studio DreamWorks Animation SKG Inc,
      And H&R Block Inc. (NYSE: HRB - News), 
      And The New York Times Co. And Molson Coors Brewing,
      And the Estee Lauder Cos Inc. And Tiffany & Co.,
      the Hershey Co., Harley-Davidson Inc., Expedia Inc., 
      Abercrombie & Fitch Co., American Eagle Outfitters, 
      Burger King Holdings Inc., CBS Corp., Chipotle 
      Mexican Grill Inc., Whole Foods Market Inc., 
      Starbucks Corp., Netflix Inc., JetBlue Airways Corp.,
      NStar, and Dr Pepper Snapple Group Inc.
Not even the most ardent Apple fan, I would assume, could believe this is a fair valuation.

[Edited to add list of names that didn't make my original cut and paste.]

Re: Why Everyone is Afraid of Apple

#3

if you wanted to buy the entire company it would cost you about $240 billion. To put that in context, for the same amount of money you could own Newmont Mining Corp. (NYSE: NEM - News), the world's largest gold-mining company, And E.I. Du Pont de Nemours & Co. And Kellogg Co., And Shrek studio DreamWorks Animation SKG Inc, And H&R Block Inc. (NYSE: HRB - News), And The New York Times Co. And Molson Coors Brewing, And…

He actually goes on to list another dozen or so companies; Apple's valuation is all of those combined.

Re: Why Everyone is Afraid of Apple

#5
post #3

if you wanted to buy the entire company it would cost you about $240 billion. To put that in context, for the same amount of money you could own Newmont Mining Corp. (NYSE: NEM - News), the world's largest gold-mining company, And E.I. Du Pont de Nemours & Co. And Kellogg Co., And Shrek studio DreamWorks Animation SKG Inc, And H&R Block Inc. (NYSE: HRB - News), And The New York Times Co. And Molson Coors Brewing, And…

He actually goes on to list another dozen or so companies; Apple's valuation is all of those combined .

Apple's P/E is just under 22, which is not terribly expensive for a company that just launched a new, multibillion dollar product line (the iPad) and who has the dominant product in a rapidly expanding market (smartphones).

The writer puts it as "Would you rather own Apple or [long list of companies]?" That's a little misleading, because any of those companies could be overvalued or undervalued by the market, and because betting all your money on one company is almost always less attractive than spreading your risk over a dozen different ones.

Re: Why Everyone is Afraid of Apple

#7
"Journalists are terrified of this company too.

Why? Just ask Jason Chen - the editor at tech blog Gizmodo who got his hands on the next iPhone. Apple's response? They sent in the police, who smashed down Chen's front door, ransacked his house -- while he was out -- and carted off computers and files. When Chen returned home from dinner with his wife, they frisked him too."

This is the kind of argument they are making to support the point????

Re: Why Everyone is Afraid of Apple

#8
post #5
post #3

Earlier quoted context omitted.

He actually goes on to list another dozen or so companies; Apple's valuation is all of those combined .

Apple's P/E is just under 22, which is not terribly expensive for a company that just launched a new, multibillion dollar product line (the iPad) and who has the dominant product in a rapidly expanding market (smartphones). The writer puts it as "Would you rather own Apple or [long list of companies]?" That's a little misleading, because any of those companies could be overvalued or undervalued by the market, and bec…

[deleted]

Re: Why Everyone is Afraid of Apple

#9
post #7

"Journalists are terrified of this company too. Why? Just ask Jason Chen - the editor at tech blog Gizmodo who got his hands on the next iPhone. Apple's response? They sent in the police, who smashed down Chen's front door, ransacked his house -- while he was out -- and carted off computers and files. When Chen returned home from dinner with his wife, they frisked him too." This is the kind of argument they are makin…

> Apple's response? They sent in the police ...

This, like much of the article, is complete hyperbole (unless you actually believe Apple controls the police force).

Re: Why Everyone is Afraid of Apple

#10
post #5
post #3

Earlier quoted context omitted.

He actually goes on to list another dozen or so companies; Apple's valuation is all of those combined .

Apple's P/E is just under 22, which is not terribly expensive for a company that just launched a new, multibillion dollar product line (the iPad) and who has the dominant product in a rapidly expanding market (smartphones). The writer puts it as "Would you rather own Apple or [long list of companies]?" That's a little misleading, because any of those companies could be overvalued or undervalued by the market, and bec…

betting all your money on one company is almost always less attractive than spreading your risk over a dozen different ones.

As a minority shareholder, perhaps, but not necessarily as an owner.

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