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Discussion Starter · #1 ·
http://www.macobserver.com/stockwatch/2003/12/02.1.shtml

Now, I may be a Fool, but even I know that Business Valuation is a long process, if the Valuation was as short as the artical then these guys are missing the Big Pic! P/E ratios must be compared to industry standards, maybe I missed it, but there is no comparison to anythhing here, it even makes me wonder why someone would bother to write an artical like this, so void of information.
P= Price per share
E= Earnings per share
(just fer those who might be wondrin)
 

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There is no reason for an intelligent investor to put money in Apple right now. First of all it wouldnt be a profitable investment if you look at the numbers but there is even worst...

Apple (under the control of M. Jobs) has never created value for its shareholders. For exemple, M. Jobs is paid an insane salary in stocks options which only contributes to decrease the income of the company. Also, Apple doesnt give dividends AND never buy back stocks from the market. With their billion in cash, they should have bought a crap load of stocks right before putting the ITMS online but they didnt. This is a clear exemple that Apple is not interested in pleasing its shareholders.

It is sad but true, Apple make good product but I would never invest one of my dollar in it. Even if they managed to increase drasticaly their market share, the company (and Jobs) cultures prevent them from rewarding their shareholders...

Very bad company IMHO...
 

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Discussion Starter · #3 ·
I do agree,the only investment in Apple I would ever make is when I purchase their products. BUT the value of a company is not soley based in its ability to declare dividends. With Apple, as a company, I think of all the intangible assets that come with this company, goodwill from consumers is a huge asset, the esthetics of their products. This artical was written for the purpose of investors, and yeah, that is fine, I just fel that it's a little scant on the good points of Apple, that really give this company value. I'd like to see a full business valuation, step by step (174 Steps).
 

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Only two known way to reward investors:
- dividends.
- buying back stocks from the market.

The increasement of the value of the stock is linked to my point 2. The more stocks the company buy from the market, the less they are availlable and their value increase!

I am a prety good investor, never lost money on the stock market (how many can say that?) and always beated the market. I might post some financial advices in the 'everything else' forum eventually... But the most basic advice from all is: dont believe in instinct when you are investing! Using scientific metodology to analyse the market is the only sure way to make money. The more mecanical the methodology is, the more reliable it is.

After saying that, the only reason someone would invest in APPL is to make a statement or they are the manager of a big mutual fund and want to look like originals...
 

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Discussion Starter · #6 ·
haha, But dispensing more shares only reduces the value of the existing shares, see, its silly... The Stock market is the biggest scam I have ever heard of. Stocks are ment to be a long term investment, yet stressed out day traders treat it like their own playground. And the Stock Markets anywhere are fickle, the slightest noise about something negitive and stock/share prices can plummit. Money sure is Funny sometimes!
 

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Ok, go see Link in the Everything else forum for some advices.

Vinnie: Stock options dont reward shareholders at all! They reward the CEO and other high ranking executives. In fact, they are the plague of finance IMHO. They reduce the treasury of the company and give insane amount of money to the CEO. Jobs is way over paid. In fact, if Jobs was paid a normal salary, the value of APPL would probably increase by 1-2$. Quick explanation: the more the stock worth, the more it cost Apple to pay Jobs.
 

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It would be nice to see stock options valued into the bottom line of Apple, or any other company that has this "overhang" of expenses, but does not report it as a debit to their bottom line.
 
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