trefoil
Registered: Mar 2007
Posts: 3383 |
02-28-12 03:36 AM
Quote from trading spaces:
When you take the cash out it has a p/e of 11. How are you valuing it?
What the post above this one says, re the accounting change. Covered in the Jonathan Weil article I cited.
Cash is nice, but they're not distributing it as dividends, so it's just sitting there, earning not a whole lot. Good thing to have in a stuttering economy like the one we had last year, but if the rally in Jan is correct, this year is going to be a lot better, and companies with lots of cash are going to look not so hot. Combine that with some "aggressive" accounting, and, well, not really as hot as it looks.
For now of course they do have that nice usability edge, but one has to assume that sooner or later someone at Android figures out they're selling phones, not computers, and rebooting the damn thing every time you get a call is not the ticket to greater sales. Apple might be in trouble when that happens.
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