Thursday, October 27, 2011 – As we explain in the Bullish Cross Broad Approach to Apple, creating sound, conservative and highly reliable valuation models is central to any successful Apple investment thesis. Bullish Cross has never missed an intermediate or long-term price target on Apple ever.
The reason for this is quite simple really. It is because our valuation models are unmatched by anyone in the industry. We don’t give overly optimistic expectations, and we don’t publish overly conservative price targets either. We produce a price target that we believe Apple can easily achieve — all things considered.
This section of the site will be focused on analyzing every corner of Apple’s financial situation. We will be constantly tweaking our model, and we will be offering forecasts for where we believe Apple is headed based on the valuation picture.
With a complete understanding of Apple’s financial situation, one will then be able to graduate to formulating the best possible investment strategy that will fully capitalize on this seemingly endless ATM machine. Apple is the easiest investment vehicle around because while it takes a little work to fully comprehend Apple’s financial situation, it is extremely surprising how badly the market at large misunderstands the company. And this lack of understanding results in massive imbalances in pricing, which gives anyone who is willing to do a few hours of work the ability to produced outsized returns on their capital.
The entire point of this section is to demonstrate just how large that imbalance is and when we believe that imbalance will naturally correct itself to the upside. In other words, point of this section is to demonstrate how far Apple will go and precisely when it is that we will all become super rich.
The Table of Contents
1. The Limitations of Valuation as an Asset Pricing Model (October 31, 2011)
2. A General Overview on Valuating Apple (October 31, 2011)
3. The Earnings Picture
4. Financial Analysts v. Market Analysts (November 9, 2011)
5. An Overview in Forecasting Apple’s P/E Ratio, Part 1 (November 10, 2011)
6. An Overview in Forecasting Apple’s P/E Ratio, Part 2 (November 15, 2011)
7. Apple’s P/E Compression & The Historical Analysis (November 17, 2011)
8. Apple’s P/E Compression & The Current Trend (November 28, 2011)
9. P/E Compression: Laying the Foundation for the Future