By David Trainer:
By now the whole world knows that Apple (AAPL) released two new iPhones earlier this month. The iPhone 5S is the new upgraded model with a fingerprint scanner and increased processing power, while the iPhone 5C is a cheaper, plastic phone with roughly similar specs to the old iPhone 5. As evidenced by the 10% decline in AAPL’s stock price since the announcement, the new devices have underwhelmed investors. These latest events support my bearish thesis from May of this year.
AAPL Without Steve Jobs is Worth Much Less
I am not sure anyone is or has been as good as Steve Jobs at innovating. Tim Cook is a good CEO, he’s just not good enough to keep Apple enough ahead of the competition to maintain the company’s sky-high ROIC of 270%.
A more normal ROIC (~50%) implies a price of ~$240/share as I explained on CNBC’s Squawk
via SeekingAlpha.com: Home Page http://seekingalpha.com/article/1707642-apple-stays-rotten?source=feed