The following is an excerpt from David Zielenziger | September 23, 2012 | ibtimes.com |
Now that Apple (Nasdaq: AAPL), the world’s most valuable technology company, has another hit with the iPhone 5, are you sorry you didn’t buy its shares in January 2009 when they were at only $90.75? Or October 2002 when they were at $7.43?
On Friday, as the iPhone 5 was unleashed worldwide, Apple set a new record high of $705.07, before easing to close at $700.09.
The Cupertino, Calif., electronics company, while costing plenty for a single share, is still priced reasonably compared to expected earnings. Its price-earnings ratio is only 16.5, compared with 15 for International Business Machines Corp. (NYSE: IBM) and 21.72 for arch-rival Google (Nasdaq: GOOG), the Android proprietor.
Like Apple, Google’s also a member of tiny club of companies including Berkshire Hathaway Inc. (NYSE: BRK/A) and Seaboard Corp. (NYSE: SEB) that sell for more than $700.
Analysts are bullish on Apple. As of Friday the highest target price was $1,111, published by Topeka Capital’s Brian White. So perhaps it’s still a good buy, despite the current level as well as bitter rivalry with Samsung Electronics (Seoul: 005930).
Why not buy shares of Apple suppliers, contract manufacturers or partners? Here are five random suggestions:
ARM Holdings (Nasdaq: ARMH). As part of Apple’s “think different” strategy, it’s long developed microprocessors far afield. British developer ARM Holdings designs the central A6 processor for the iPhone 5.
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