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Subject:  Re: Time for a Few Small Repairs Date:  1/23/2008  4:39 PM
Author:  BottomIsIn Number:  27404 of 529

Aapl?  Working out great since bought at $129 today.

Let's put some numbers on it...$20 Billion in cash approximately for about $25 in cash PER SHARE.  So, yank that out of the price of the stock and you are buying a company for about $100 that has earnings of $5/share growing at 30 to 40%.  Even if you slow growth down, you are getting in at a great price.  Add to that the fact that at SOME POINT, the cash will either be paid back via buybacks or via dividend or via buying some uber cool company with accretive earnings and you gotta think Aapl at $125 ish is a steal and a half. 

Furthermore, the earnings from iphone this quarter was $250 million or so.  But wait, they DEFER earnings on iphones over 24 months, so already you can bake in another $250 per quarter for the next 2 years, even if they sell not ONE MORE PHONE.  But they will.  So, when they've sold 10 million phones at the end of this year, they will be recognizing....over $700 million income just from the damn phone.  Just the phone is worth $20 per share. 


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