Tomahawk, WI 07/24/2014 (Basicsmedia) – A rise in Apple Inc. (NASDAQ:AAPL)’s margins in the first-quarter has raised hopes that the giant phone maker could hold the line on pricing, ahead of the release of the much anticipated iPhone 6 and iWatch. Apple did well in the first-half of the year, with investors now shifting their focus to the launch of new products as well as the impact of the IBM partnership on iPhone sales in the subsequent quarters. Point View Wealth Management President, David Dietze, in an interview on CNBC, reiterated his buy position on the company’s stock at the back of impressive second-quarter earnings and impressive third-quarter forecast
Chief Investment, Dietze, believes Apple should be a core holding for any investor taking into consideration Apple Inc. (NASDAQ:AAPL) increased its earnings per share by 20% and is trading at 14x its earnings. The analysts also emphasized the fact that the company’s high-growth rate qualifies it, to an automatic ‘Buy.’
“The numbers are quite clear, you have a stock that just increased earnings per share by 20%, year over year. it is trading at 14x earnings, I think most investment professionals would say when your growth rate exceeds by that extent, your valuation is to buy ” Said Mr. Dietze.
The fact that Apple Inc. (NASDAQ:AAPL) is sitting on one of the largest cash stacks gives it the much needed financial flexibility to carry out large stock buyback, as well as increase its dividend offer. Mr. Dietze expects iPhone 6 to command huge sales in the market, compared to the previous models at the back of a bigger screen size. The release of the new iPhone and iWatch is expected to increase Apple’s Market share, in the ever competitive smartphone industry.
“There is some uncertainty what this new iPhone 6 is going to look like, but I think as long as it has a bigger screen, they are going to keep their leading market share. They increased iPhone sales 13% year over year I think that is going to continue as soon as they release iPhone 6” Said Mr. Dietze