Special Feature
So, if we consider the current market cap of $381 billion (at time of writing) and subtract its current cash & equivalents from it, we are left with a “premium” of $236 billion. If the company continues to generate $30bn of free cash p.a. then in less than eight years a stock purchaser today would have a business entirely backed by cash and so the IP, goodwill, plant etc entirely for free.
APPLE RELATIVE TO S&P 500 AND NASDAQ
46 | www.financial-spread-betting.com | May 2013
With all the above in mind and considering the “kitchen sink” job that was done in the last quarter’s results, we think Apple shares present a good entry opportunity or alternately a smart “pairs” trading of an equal short on the Nasdaq or S&P 500 relative to a long position in the stock as the chart here shows the disconnect that has opened against them both over the last year.