Apple Inc (AAPL)

[Bootz]

LaMonica: Running Out of Words to Describe How ‘Awesome’ Apple Is

By Aaron Task | Daily Ticker


Apple shares rallied Wednesday after reported third-quarter results that defied expectations — and explanation. The stock rose 3% to $388 Wednesday after trading above $396 intraday.

"We running out of words in English language to describe how awesome Apple has been," says Paul LaMonica, assistant managing editor at CNN Money. "No matter what obstacles seem to be in their way…it doesn't really matter."

As has been exhaustively reported, Apple reported fiscal third-quarter profits of $7.31 billion, more than double year-ago levels, as revenue soared 82% to $28.57 billion.

Here's how Breakout's Jeff Macke broke down the results:

Apple's Cash on Hand grew by 16% to $76.2 billion. The number works out to roughly $81 per share. Were they so inclined, Apple could write checks for Netflix (NFLX) and Ebay (EBAY) combined and still remain liquid.

Apple's revenue growth is actually accelerating.

The company beat EPS estimates by over 30% and revenue forecasts by 15%. These numbers speak ill of the people analyzing Apple but are jaw-dropping nonetheless.

The stock continues to perform yet somehow gets cheaper; trading at over 18x earnings yesterday and in the vicinity of a 15 P/E today.

As with most observes, LaMonica agrees wholeheartedly with that last point.

"As long as you look past the sticker shock of a near $400 [stock] price… Apple does look cheap before you subtract the cash," he says. "When you subtract the cash, it looks dirt cheap on a pure valuation basis."

After Tuesday's report, Apple kept the pressure on its competition Wednesday by releasing a new OS and upgrades to the Mini Mac and MacAir lines. Meanwhile, excitement is already building over the release of iPhone 5 this fall.

Like most observers, LaMonica doesn't see anything that's going to stop Apple's near-term momentum, other than the still niggling issue of Steve Jobs' health, as we discuss in the accompanying video.

Aaron Task is the host of The Daily Ticker. You can follow him on Twitter at @atask or email him at [e-mail]

http://finance.yahoo.com/blogs/daily-ticker/lamonica-running-words-describe-awesome-apple-203124516.html;_ylt=AhJkwFAZaMPfB7hic9Ftnm67YWsA;_ylu=X3oDMTFjMWFnaWtkBHBvcwMzBHNlYwNGUERhaWx5VGlja2VyQmxvZwRzbGsDbGFtb25pY2FydW5u