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Tue Jan 24, 2012, 06:01 PM

tomorrows trade,today

AAPL. i own it. it just reported huge blow out numbers. the street was looking for about $10 a share and they earned 13.87. revenue was also huge.
for the second quarter the expect to earn 8.50 a share.
if you take 3 quarters at 8.50 and one quarter at 14 that gives you 39.50 a share in earnings for the year. give that a p/e of 15 and that gives you a price of 590. with a 12 p/e you get 472.
the stock is up after hours to 450. Apple also now has $100 a share in cash or 97B or to put it another way ball could buy and one of the s/p 500 except for the 26 largest companies and pay cash for it.

if you subtract out apples cash its current p/e is 8.8 this for a company growing at almost 100% y/y
I know they can't keep growing at this pace but the stock is imho one of the cheapest on wall street.
if the stock opens under 450 a share tomorrow I plan on buying more.

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