There’s been an endless debate for the past few months over whether or not Apple (NASDAQ: AAPL ) is cheap. The company’s traditional valuation metrics are among the lowest in the entire stock market, but bears point to growth deceleration and margin contraction as justifications for declining trading multiples.
Well, $50 billion says Apple is cheap.
That’s how much Apple is boosting its current share repurchase program by, and represents the vast majority of the total increase in planned capital returns through 2015. Apple’s initial plan unveiled last year included $10 billion in repurchase authorization, and the new total is $60 billion. To date, Apple has only repurchased $2 billion of stock (4 million shares), which still leaves a massive $58 billion budget for Apple to buy back shares.
That could buy approximately 143 million shares at current prices, or over 15% of all shares currently outstanding. Realistically, these repurchases will take place through the end of 2015 and there will also inevitably be some dilution related to equity compensation, but the point is this is an enormous vote of confidence.
10 Best Cheap Stocks To Own Right Now: Kohl’s Corporation(KSS)
Kohl?s Corporation operates department stores in the United States. The company?s stores offer private and exclusive, as well as national branded apparel, footwear, and accessories for women, men, and children; soft home products, such as sheets and pillows; and housewares primarily to middle-income customers. As of January 29, 2011, it operated 1,089 stores in 49 states. The company also offers on-line shopping on its Web site at Kohls.com. Kohl?s Corporation was founded in 1962 and is headquartered in Menomonee Falls, Wisconsin.
- [By Canadian Value]
Position % of Fund Assets 1) First American Financial Corp. (FAF) 7.0% 2) Apple, Inc. (AAPL) 6.5% 3) Coinstar, Inc. (CSTR) 4.8% 4) EMC Corp. (EMC) 4.4% 5) Coach, Inc. (COH) 4.4% 6) Kohl’s Corp. (KSS) 4.1% 7) Blucora, Inc. (BCOR) 4.0% 8) Tetra Tech, Inc. (TTEK) 3.1% 9) OM Group, Inc. (OMG) 3.0% 10) American International Group, Inc. (AIG) 2.8% TOTAL 44.1% One area that we believe still offers some value in the market is in high quality, large