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Apple’s share buyback boost only make sense if its value is intact $AAPL
By Investment Moats  •  April 25, 2013

Apples share buyback boost only make sense if its value is intact $AAPL

Apple boosted their share buyback program from 10 billion to 50 billion but investors have to see if fundamentals are still intact.

I am invested in Apple, but not by a lot. The thing that I have been debating is whether their model weathers them better from market cycle and the premium for having a culture focus on customer centric products protects margins and maintains a moat.

I guess I have to say I made an error here. Perhaps my estimation of forward earnings is not conservative enough, hence the average price of $520 looks rather high.

I failed to estimate conservatively and I am paying the price for it.

Quarter results

The quarter results show that Apple have margin compression from 47.5% to 37.5%. It is a massive drop, but the margins is still very respectable for a consumer retail seller.

Quarterly income comes in at 9....

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By Investment Moats
Investment Moats is set up by Kyith Ng and have been around since 2005. He aims to share his experiences making sense of money, how money works and ways to grow his money. It hopes that by sharing his experiences, both good and bad, season investors can advice and critique his decisions and new investors can learn from them and find their own style ...
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