Apple Inc (AAPL)

If the iPhone somehow becomes uncool, that will clobber them. Their market share has peaked as tablets have been commodities. Doesn’t want to bet on consumer trends.

As great a company as this is, it is a gadget maker, although a very cool gadget maker. His issue is that competition has caught up from the other gadget makers. Also, when you have an iconic person like Steve Jobs running the company, mediocrity runs away. Great company, not expensive, has lots of cash but he doesn’t think innovation will continue.

He is positive on this company. 2 things had to happen to move the stock. One was they had to get their capital allocation policy in place, which they have done and will be distributing about $100 billion by the end of 2015 through stock buybacks and dividends. The other, and more important issue, is to convince the market that they continue to be an innovator, and if they can, this is a great opportunity. They are talking about a number of new products starting in the fall of 2013 and going into 2014. A solid company and very inexpensive.

Recommended at 571.72 now 434.58 down 22.35% They did a share purchase plan a few weeks ago, which put a floor on the recent drop in share price. Still some catalysts, Apple TV, Iphone. Have started buying it for new clients recently. The growth won't be as big as it has been in the past.

Has been YOUR tech spot until last month. It has been bottoming for some time. He wishes it to retest previous levels.

Raised $17 billion in a bond issue which he thinks is absolutely insane. For a company with $100 billion plus in cash to respond to a hedge funder to do a massive share buyback, raise the dividend and borrow money makes absolutely no sense. It always worries him when companies try to raise shareholder value by doing a massive share buyback. Great company but they need to come out with a new product. Losing traction on the phone side to Samsung.

Has been buying at these prices. Feels that it offers value. Challenged in terms of some of the market share dynamics going on with Samsung. However they have a pretty good moat around their business in terms of their eco system. Has a very strong brand appeal. They continue to take market share.

Such a big part of culture. They revolutionized how we use technology. How do you replicate that again. She prefers Qualcom because they have the patents on all the technology and the chipset side of the business.

No one can argue about the value in the company. There is $140 billion in cash and it is paying a dividend. Its products are not going away. There is lack of enthusiasm right now so this is probably the time to be loading up on the stock. This is at the height of maximum pessimism.

Although he owns this, at this point he has 2 major issues. One is capital allocation policy. They have $137 billion and they have to figure out what to do with it. Secondly, they have to overcome this wave of pessimism that is sweeping over the company. This is sort of rooted in the idea that innovation died with Steve Jobs. The market is looking for a new innovative product such as a phone, iPad, TV, etc.

(Market Call Minute.) Have a lot of cash so it is safe. She is waiting to see what the next product line is going to be.

(A Top Pick March 2/12. Down 15.62%.) Has clearly changed from a momentum stock, even though the valuation never approached dangerous levels. Feels a little bit of momentum is coming back. Earnings growth has flattened out in the last couple of quarters but doesn’t think it’s going to stay that way forever. Trading at only 10X earnings. Could see it moving into the mid-to high $500’s this year.

Has just started purchasing this. At these levels, the cash flow yield is over 10%. PE multiple is below 10 times. A third of its market cap is in cash. Generates about $20 billion in cash each quarter. He knows that at these levels there is a catalyst in place to have to return cash to shareholders. It could be through a much larger dividend or a very large buyback.

We are not ready to get into Apple. They made an announcement they would bump the dividend. Sees 3-5% correction in equity markets so use that as an entry point for Apple. One more lower low and then you can nibble.

It has 10%-11% projected earnings growth according to some analysts. PE of 9.8%, which is ridiculous. Very cheap.