Apple shares 'absurdly cheap'
Not everyone is worried about Apple's future fortunes, or its direction under CEO Tim Cook.
Local Apple bull Paul Theron, founder and CEO of Johannesburg-based asset management firm Vestact, said the company's prospects remained solid, and that the share price, at about $120 (R1,615), was "absurdly cheap". Apple, which is trading below its May 18 2015 all-time high of $134.54 a share, has a historic price-to-earnings ratio of 14. "That's lower than Toyota, lower than IBM. It's lower than banged-up banks like Citibank and Wells Fargo. That's madness," Theron said. The smartphone market was not only not mature, it was still in its infancy, he said. This would play strongly in Apple's favour. "Apple dominates the top end of the world's most important product market - smartphones. The potential market is every person in the world. People who don't have one want one. People who have one want a new one." What Apple needed to do, Theron said, was to simply "go on doing what it does best", namely "designing, manufacturing and distributing smartphones". He predicted the next iPhone...
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