|
Apple Stock (AAPL) - Worth Buying?
Apple remains one of the largest companies in the world. Many analyst and just now Barclays just upped their price targets and at around a current price of $460 its still looking very cheap, close to the 52 week low. A few things:
(1) Apple is widely said to be increasing the dividend.
(2) A china distribution deal is still on the cards - may involve the largest carrier (China Mobile).
(3) They just announced a $60 Billion dollar share buyback.
Now logically, as I understand, they're going to be front loading the share purchases. In other words, they want to buy their own shares back cheaply from the market so they need to do it while the price is lower not when the price is higher. They've given themselves around 2 years to complete the purchases.
This improves the EPS for shareholders and pushes the price up. However, they may be looking for pullbacks before resuming purchases. Does this mean that Apple stock is going to be quite volatile over the next couple of years. If the price goes up, they stay back and if we swing to a lower price, they'll resume their purchasing.
And what about now? In the near term is it worth buying the stock at this price?
|