Christopher Mullarkey, Co-Portfolio Manager at Markston International, says Apple Inc. (AAPL) is still interesting for investors, and is an example of how his firm focuses on finding value with a catalyst.
Clearly there is value there. If you’re aware, Carl Icahn has been publicly saying that it’s a very inexpensive stock and has had discussions with management to continue to return cash to shareholders through stock buybacks. The company also initiated a dividend.
We look for management change, and while Steve Jobs was clearly an absolute visionary and an incredible leader, we have been extremely impressed with Tim Cook and his team, and really believe that Wall Street’s myopic focus on smartphone sales fails to recognize the direction the management team is taking the firm to grow its intrinsic value.
Mullarkey says Apple distinguishes itself among peers as a great technology company with a large market opportunity, combined with the marketing power to grow share and improve margins as it gains scale.
Historically, a lot of tech companies need to cut price in order to grow sales and at best maintain their profit as margins drop. We actually see Apple as having the ability to continue to leverage its brand, 500-plus million user-installed base and its growing ecosystem to continue to go up market with products and services in a new computing paradigm.
Apple Inc. (AAPL) Offers 2% Dividend Yield as Growth Continues
September 02, 2014
Apple (AAPL) Sees Shifts in Shareholder Base from Growth to Value Investors
February 19, 2013
Apple (AAPL) Maintains R&D Competitive Advantages While Attracting Value Investors
March 01, 2013
Apple (AAPL) Still a Value Stock at $430s
April 30, 2013
QUALCOMM, Inc. (QCOM) and Apple Inc. (AAPL) Well Established in Shift to Mobile and Cloud With Up to 8% Cash Flow Yield
October 08, 2013
