Analysis on $AAPL and recent IPO $BOX
Don’t over trade. Don’t force trades. Remember the goal of what we’re doing — maximizing our huge potential returns while minimizing our potential for losses.
Your $AAPL factoids of the day: $AAPL has $178 billion in cash, that’s equal to 1.2% of the ENTIRE US GDP. $178 billion is also exactly 1/2 of $GOOG‘s entire market cap of $363 Billion. Put another way, $AAPL has $30 per share net cash and if $GOOG had $178 billion in net cash on the balance sheet, that’d equate out to $260 per share. $AAPL also did $75BB in sales in the last 3 months — that’s equivalent to 2% of the entire US GDP for the last 90 days ($15TT / 4 qtrs / $75BB = 2%)
BOX came public last week, and I got a request from a subscriber asking me to analyze it. So…
$BOX Revolution Investing analysis: $2.5BB market cap. Looking here:http://www.scutify.com/company… We see net cash on the balance sheet is $165MM cash – $40MM debt, so say $125MM in net cash, or $1 per share. That’s not much cushion from a value investor’s valuation perspective.
Looking here: http://www.marketwatch.com/inv… We see that the company is growing sales quickly — from $21MM to $58MM to $124MM over the last three years. But it’s going back to that market cap, that means it’s trading at 13x sales, which is a lot, but not terrible for a company growing sales nearly 100% per year like $BOX is. No earnings, but it would turn profitable quickly with the 80% gross margins its currently showing.
If you believe that $BOX is a truly Revolutionary company that’s changing the world, then it’s probably a great buy at this early stage. The company is in the business of: “Box, Inc. provides a cloud-based mobile optimized enterprise content collaboration platform in the United States. The companys platform enables organizations of various sizes to store, share, manage, create, and collaborate with content internally and externally. It serves companies in a range of industries, such as healthcare and life sciences, telecommunications, energy, and financial services.” http://finance.yahoo.com/q/pr?…
Which sounds like a great growth business, but also one in which Microsoft, Amazon, Google and a few other very big competitors might squash in a hurry. So, $BOX is not an investment for me.
