Since September management has successfully reduced long term debt by over $8.2 billion, bringing it to a total of approximately $67.5 billion. They have stated a goal of bringing debt down below $61.1 billion (based on the current euro to dollar exchange rate). Their recent actions lead me to believe this goal will be achieved.
Last but not least, a granny smith
Apple Inc. (NASDAQ:AAPL) has fallen, and boy has it fallen hard. Fears over Apple Inc. (NASDAQ:AAPL) losing its edge to competitors like Samsung and LG, coupled with a sky high valuation, sent the stock tumbling. However, there are a couple of things about Apple I see that have me paying very close attention after the stock lost nearly 40% of its market value in just over half a year.
With its fanatical fans and ubiquitous logo Apple Inc. (NASDAQ:AAPL) has, without a doubt, one of the strongest brands in the world. The kind of brand whose intrinsic value can’t be bought for any amount–it must be earned through a reputation for delivering excellence.
Cash rules everything around me, and Apple Inc. (NASDAQ:AAPL)’s is sitting on a hoard of cash. As of March, Apple was sitting on a hoard of nearly $145 billion, equal to nearly 40% of its market cap! This April Apple announced the largest share buyback program in history. In May Apple Inc. (NASDAQ:AAPL) raised its dividend by 15%, and still has a very low payout ratio.
Final foolish thoughts
First there is Alcoa Inc (NYSE:AA), perhaps the finest aluminum company in the world. Held down by low prices for a commodity that analysts view as having bottomed out, Alcoa may be down now, but won’t be for long.
Next comes Spanish Telefonica S.A. (ADR) (NYSE:TEF). Although based in Spain, they are the dominant telco in Latin America. Holding down the stock is Telefonica’s massive debt load, which management has been successfully, and rapidly, reducing.
Then there is Apple Inc. (NASDAQ:AAPL). Recently devastating losses crushed what had been a meteoric rise. But Apple is still sitting on a huge pile of cash that can be used to create tremendous value for shareholders. The phase of greatest growth is over for Apple, but it still looks like a cash generating machine to me.
Investors as a whole are fearful about the future of these great companies. Excellent, excessive fear creates opportunities for us investors. Anyone who has studied the greatest investor of all time knows that when excessive fear is present, its time to display your courage and get a little greedy.
The article 3 Stocks the Market Hates, And Why You Should Love Them originally appeared on Fool.com and is written by Ryan Palmer.
Fool blogger Ryan Palmer owns shares of Telefonica S.A (ADR). The Motley Fool owns and recommends shares of Apple. Ryan is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.
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