apple stock recommendation presentation
TRANSCRIPT
1
Apple Products Now…
2
iStock
3
1. Apple Enjoys High Profits and Zero Debt
Buy Apple Stock for Future Profitability
4
2. Apple’s Brand Grows Bigger, More Robust
3. An Apple a Day Won’t Keep the Speculators at Bay
Source: MSN Money Nov 17, 2009
Apple Enjoys High Profits and Zero Debt
Comparison of Profit & Profit Margins
6.69
2.82
15.7
High Profit Margins due to Premium Products
1.2
7.32
0
1.45
5.7
Profit Margins (in %)
Profit (Billions)
5
Apple Enjoys High Profits and Zero Debt
7.7
1.9
0
3.7
Source: Yahoo Finance October 19, 2009
Comparison of Debt Ratios
6
Industry
1.539
6.289
2.97
.741 .71
Doubles Next Best CompeStor
Source: Yahoo Finance October 19, 2009 7
Apple Enjoys High Profits and Zero Debt
1. Apple Enjoys High Profits and Zero Debt
Buy Apple Stock for Future Profitability
8
2. Apple’s Brand Grows Bigger, More Robust
3. An Apple a Day Won’t Keep the Speculators at Bay
Source: Yahoo Finance Nov 20th, 2009
Source: Yahoo Finance October 19, 2009
Apple’s Brand Grows Bigger, More Robust.
0
50
100
150
200
250
Adj Close
9
$10
iPhone iTunes
Stock Price
iTouch
iPod iMac
$200
Source: infoapplestore.com Nov. 2009
Apple’s Brand Grows Bigger, More Robust.
Expansion & Products • Stability sales from upgraded iPod models
• Nano Video, iTouch, now video games • iTunes, App Store, Music = Diversification
• 1 billion sold with no overhead • The largest music retailer in the U.S
• iPhone—just signed deal with China • Apple valued above Google and Intel • Steve Jobs name CEO of the decade • Still potential homeruns…shhhhhh
10
Source: Apple Insider, Oct 2009
Apple’s Brand Grows Bigger, More Robust.
iPod iTunes/Apps
iMac 44%
iPhone 50%
50% 30%
Retail
Online
“Halo” Effect
11
1. Apple Enjoys High Profits and Zero Debt
Buy Apple Stock for Future Profitability
12
2. Apple’s Brand Grows Bigger, More Robust
3. An Apple a Day Won’t Keep the Speculators at Bay
Apple Market share esSmates range from 9%-‐14%, and some analysts anScipate an increase to 18% by year end.
Market Share for High-‐End Computers. (over $1000.00)
An Apple a Day Won’t Keep the Speculators at Bay
Apple 90%
All PC’s 10%
Microso` 89%
Apple 9.8%
Risk 1: Market Share & Windows 7
Betanews , July 2009 13
High-End Computer Market (>$1000)
Computer Market
An Apple a Day Won’t Keep the Speculators at Bay
32.47
16.85
19.36
19.38
30.5
27.3
Risk 2: Over-Valued?
Source: MSN Money Nov 17, 2009 14
An Apple a Day Won’t Keep the Speculators at Bay
Risk 3: Confidentiality
(What is up Steve Job’s Sleeve)
15
1. Apple Enjoys High Profits and Zero Debt
Buy Apple Stock for Future Profitability
16
2. Apple’s Brand Grows Bigger, More Robust
3. An Apple a Day Won’t Keep the Speculators at Bay
17