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Apple Cheap at $600, Technology Report by Leading Financial Newsletter Profit Confidential(March 29, 2012)
New York, NY (PRWEB) March 29, 2012
As the shares of Apple Inc. cracked $600.00, the company had a market cap of $561 billion, making it the largest in the world based on market cap. According to George Leong, contributor to Profit Confidential, Apple should be able to continue to surge ahead and move higher. In his recent article, Why Apple Is Undervalued at $600, Leong outlines his rationale for being so bullish on Apple.
Leong highlights that Apple is presently trading at 12.13X its fiscal 2013 earning per share estimate of $48.29 per share and a price/earnings to growth ratio of 0.70 based on an estimated average five-year earnings growth rate of 19.49%.
A PEG below 1.0 means that Apples multiple is trading below its estimated five-year growth rate, which means an undervalued situation, says Leong.
Leong believes the growth rate may be conservative based on the surging sales of the companys products, including the iPad, iPhone, Mac, and iTouch.
The threat of this of course is that the iPad will see sales slow and rival tablets pick up market share, cautions Leong.
While Leong notes that rivals such as Research In Motion Limited and Samsung would like to believe they can gain market share, he doubts it will happen.
The iPad is ingrained into the minds of the consumers as the product of choice, says Leong.
The iPad is here to stay, according to Leong, and he believes it will only get better.
Profit Confidential, which has been published for over a decade now, has been widely recognized as predicting five major economic events over the past 10 years. In 2002, Profit Confidential started advising its readers to buy gold-related investments when gold traded under $300 an ounce. In 2006, it begged its readers to get out of the housing market... before it plunged.
Profit Confidential was among the first (back in late 2006) to predict that the U.S. economy would be in a recession by late 2007. The daily e-letter correctly predicted the crash in the stock market of 2008 and early 2009. And Profit Confidential turned bullish on stocks in March of 2009 and rode the bear market rally from a Dow Jones Industrial Average of 6,440 on March 9, 2009, to 12,876 on May 2, 2011, a gain of 99%.
To see the full article and to learn more about Profit Confidential, visit http://www.profitconfidential.com.
Profit Confidential is Lombardi Publishing Corporations free daily investment e-letter. Written by financial gurus with over 100 years of combined investing experience, Profit Confidential analyzes and comments on the actions of the stock market, precious metals, interest rates, real estate, and the economy. Lombardi Publishing Corporation, founded in 1986, now with over one million customers in 141 countries, is one of the largest consumer information publishers in the world. For more on Lombardi, and to get the popular Profit Confidential e-letter sent to you daily, visit http://www.profitconfidential.com.
Michael Lombardi, MBA, the lead Profit Confidential editorial contributor, has just released his most recent update of Critical Warning Number Six, a breakthrough video with Lombardis current predictions for the U.S. economy, stock market, U.S. dollar, euro, interest rates and inflation. To see the video, visit http://www.profitconfidential.com/critical-warning-number-six.
Read the full story at http://www.prweb.com/releases/2012/3/prweb9336354.htm.
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