Top Stock Pick – AMC (AMC Entertainment Holdings, Inc)

Top Stock Pick – AMC (AMC Entertainment Holdings, Inc)

Stock Review of the Day
Stock:  AMC (AMC Entertainment Holdings)
Summary:  OVERPRICED

Score:  5/20
MOS: 0%
Share Price:  $2.95
Sticker Price:  $0

Is AMC (AMC Entertainment Holdings) a good investment?

AMC, originally named American Multi-Cinema, was founded in 1920 and is is headquartered in Leawood, KS.  AMC is the largest movie theater chain in the world.  They have 2,200 screens in 244 theaters in Europe and 8,200 screens in 661 theaters in the US.

COVID-19 has put a lot of stress on some industries including restaurants, cruise lines, and movie theaters.  Some people believe these industries can recover which is causing people to invest in these types of businesses at all time lows, expecting them to bounce back up.  Unfortunately for movie theaters, that appears unlikely. 

With the growing popularity of online streaming platforms such as Netflix, HBO, Amazon, Disney+, and Hulu, people are finding that viewing movies and long-format TV series is much more convenient.  When you add a quarantine to the mix, it only makes online streaming more popular and on the flip side, theaters less popular.

Personally, I love movies and some movies are specifically made to be viewed in a theater.  For example, movies such as Christopher Nolan’s The Dark Knight, The Dark Knight Rises, and Inception are shot on IMAX and intended to be viewed on a large screen but not everyone appreciates the big screen like I do.

This article from Market Watch states that 70% of people would still rather watch movies at home, even if theaters reopen.  This is not a good sign for theaters.

Let’s dive into economics of movies for moment…

Today, if a family of four wants to visit the movie theater, they might pay close to $100 (Estimated prices below).

2 adults x $15 per ticket = $30
2 children x $10 per ticket = $20
1 bag of popcorn = $10
4 sodas x $6 per soda = $24

Total = $84

Ouch!  

Now compare that to staying in and watching a movie on Disney+.  That only costs you $6.99/month and you can watch unlimited movies!  From the consumer economic standpoint, it doesn’t even make sense to see movies in theaters. 

Now let’s dive into the business side…

A movie theater doesn’t actually make a lot of money from movie ticket sales.  Movie theaters make money from food and drinks. 

Here is how the movie ticket sales break down for theaters…

Weeks 1 and 2:  Most theaters will take between 0% and 25% of the ticket sales.  In many cases, theaters will take 0% to get top priority on movie showings.

Weeks 3 and 4:  Movie theaters can take 45% – 55% of the movie ticket sales.  At this point, the number of tickets purchased for new releases has significantly dropped and movie studios are willing to give more profit to the theater.

Week 4 and after:  Some movies will drop from the screens but if they don’t the profits can hold at 45% – 55% or increase slightly based on contract agreements.

Now let’s talk about how theatrical releases can make money with digital releases on platforms such as Disney+ and Amazon….

Based on this article from TheWrap.com The first successful theatrical release that skipped theaters and went straight to digital was “Trolls World Tour” which released in March of 2020.  The movie was produced with a budget of $90M and within three weeks of the release, the film earned $100M through digital rentals of $19.99.  I did some homework and found that movie studios will usually take about 80% of the digital rental. 

The way we watch movies is changing.  I love theaters but that’s not where the market is heading.  I did some homework on future major releases such as Free Guy, Wonder Woman 1984, Ghostbusters :Afterlife, No Time to Die, and Black Widow and I can’t find confirmation on digital releases.  Not yet, at least.  I know studios are counting on theaters coming back but I doesn’t look like consumers are demanding it.  Digital releases may be the future and studios need to figure out a creative way to make their money back.

To answer the question is AMC a good investment?  The obvious answer is NO.  Aside from the low consumer demand for theaters, when you take a look within TYKR you can see the score is 5/20, which shows the financials are weak.  Also, with a MOS of 0% (share price of $2.95 vs a sticker price of $0) this company is in dire straights.

What do you think?

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  • 20 year history outperforming the S&P 500
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All stock reviews are for entertainment purposes only. Reviews are not financial advice.

Blog Post Author
Sean Tepper

Top Stock Pick – SHOP (Shopify, Inc.)

Top Stock Pick – SHOP (Shopify, Inc.)

Stock Review of the Day
Stock:  SHOP (Shopify)
Summary:  ON SALE

Score:  13/20
MOS:  63%
Share Price:  $1,106
Sticker Price:  $2,997

Is SHOP (Shopify) a good investment?

Shopify is a Canadian multinational e-commerce company headquartered in Ottawa, Ontario.  They were founded in 2006 and currently have over 5,000 employees.  Today, their platform is used by more than 1M businesses in 175 countries.

Based on this article on Shopify, retail commerce (physical locations) is only growing by about 4.5% per year whereas ecommerce is growing by about 18% per year.

Based on this article on BingDigital.com, here is a summary why ecommerce is growing so fast.

  1. Tailored Experience – Due to online browsing, advertisements for ecommerce are tailored to our exact interests.  For example, if you love fishing and enjoy browsing fishing supplies online, guess what type of ads you’re going to see as you browse other websites?  Exactly, fishing.  This is what drives ecommerce sales!
  2. More Options – Typically with retail commerce, you have limited options.  Inventory can run out and you may only have select colors, sizes, and specifications of products to view in person.  Whereas online, you have significantly more options.  This makes online shopping more attractive for the consumer.
  3. Social Media Integration – Social media allows consumers to read dozens of reviews within 60 seconds.  The truth of a products quality is quickly revealed thanks to social media.  If you want to find out if a product is good or bad, you don’t have to go far to find out.
  4. User Friendly – You don’t have to get in a car and drive to a physical location.  With ecommerce, you can make purchases while sitting in the comfort of your own home.
  5. Accessibility – This is somewhat similar to user friendly but relates more to store hours.  With retail, you have limited store hours such as 10am to 8pm.  Whereas with ecommerce, stores are open 24/7/365.  Ecommerce never closes which allows for continuous revenue generation.

Before Shopify was a thing, and you wanted an ecommerce platform to sell products online, you typically would have to build the website from scratch.  You would need to find a website developer and they could either code it from scratch or develop a website with an “open source” platform such as WordPress, Joomla, or Drupal.  This path can require months of work and cost tens of thousands of dollars for a small business.

With a large business, it could cost on up to millions of dollars.  And the big problem aside from the time and money, these options still leave these websites filled with bugs!  Ecommerce isn’t exactly easy to build.  There are a lot of features and functionality such as how you navigate, how you view photos, how you pay, and how products are shipped.  Overall, ecommerce is a pain in the… you know what to develop.

Shopify is considered a “closed source” platform.  A quick comparison between Open Source and Closed Source… Open Source means you can edit the code and share the code with other developers.  It’s typically messy and susceptible to bugs unless you have a highly experienced web developer to clean it up.  Closed source on the other hand means you can’t edit the code, which is good!  The platform is setup for you.  Plug and play!  All you have to do is login and the functionality is already there.  As opposed to months of work with a custom coded open source ecommerce website, you can start selling products in minutes with a closed source platform such as Shopify.

Long story short, I used to own a company from 2006 through 2010 that built websites and provided custom software engineering services which is where my software engineering journey began.  That business merged with a larger firm in 2010 and then I left the service industry.  There are a few reasons why I left the service industry with the main reason being I saw SaaS was the future. Why spend months and tens of thousands of dollars when you can get a website within seconds and pay a fraction of the cost?  Shopify, Wix, and Squarespace were starting to gain traction and I saw the writing on the wall.

Now let’s talk about how Shopify makes money…

Shopify is a B2B SaaS.  As of 2020, their monthly plans range between $29/month on up to $299/month.  Shopify also generates revenue from credit card fees, shipping fees, referral fees from partners, and POS (point-of-sale) hardware purchases.

Here is a quick 2019 revenue comparison to the competition…

Shopify = $1.58B
Wix = $1B
Squarespace = $300M

As you can see, Shopify has dwarfed the competition and it looks like this trend will continue.

Now let’s talk about some exciting news!

As of 10/13/2020, Shopify announced that Easyship, a Hong Kong based shipping app, has joined the Shopify partner program.  Easyship’s shipping options include 250 companies around the world including UPS, FedEx, and DHL.  The big win is, Easyship currently has 100,000 business customers.  This means Shopify’s market share is about to expand.

So to answer the question is Shopify a good investment?  The answer is YES.  With a score of 13/20, the financials are good and with a MOS of 63% (share price of $1,106 vs a sticker price of $2,997), this stock has a some room to grow.

What do you think?

Don’t miss out on great investments!

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  • Manage your own investments, beat the market, and retire early
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All stock reviews are for entertainment purposes only. Reviews are not financial advice.

Blog Post Author
Sean Tepper

Top Stock Pick – CRM (Salesforce.com, Inc)

Top Stock Pick – CRM (Salesforce.com, Inc)

Stock Review of the Day
Stock:  CRM (Salesforce)
Summary:  ON SALE

Score:  16/20
MOS:  88%
Share Price:  $252
Sticker Price:  $2,197

Is CRM (Salesforce) a good investment?

CRM is the largest and most well known cloud based CRM (Customer Relations Management) software company in the world.  They were founded in 1999 and are based out of San Francisco, CA.  

A CRM platform allows companies to track past and present customers as well as prospects.  You can monitor where they are at in the customer or prospect journey, what their browsing/buying behavior is, and who last contacted them.  Large enterprise corporations can have thousands of prospects and customers and without a CRM, a large corporation would be running blind.  Overall, a CRM is essential for most businesses.

Salesforce is classified as an enterprise SaaS.  I can’t stress how important enterprise SaaS is.  Enterprise means they serve large corporations.  SaaS is Software as a Services which is a monthly or annual recurring revenue model.  When it comes to enterprise SaaS, large corporations typically sign contracts that extend over years.  Usually between 3 – 10 years.  The annual cost can range between hundreds of thousands on up to millions of dollars per year for just one corporate customer.  Overall, enterprise SaaS is highly profitable and scalable.  

What makes Salesforce really powerful is it’s ability to integrate with other software applications via API (Application Programming Interface).  In layman terms, an API allows data to flow from one software to another.  In other words, they talk to each other.  This is important because companies will run on other large software platforms such as SAP and Oracle.  When a company wants to buy new software to run operations, they typically won’t replace all IT infrastructure, they just want to upgrade a function of the business such as sales.  Overall, Salesforce “plays nice” with other software companies which makes it easier for businesses to scale.

This next point is worth mentioning but it shouldn’t make a big impact on our investment decision.  Yesterday, Salesforce announced they are creating a $100M fund which they’ll use to invest in socially positive business models.  These business models engage in environmental sustainability, social justice, and alternative energy.  “Impact Investing” or “ESG (Environmental, Social, and Governance) Investing” can pull on the heart strings of emotional investors which is fine.  In some cases I would use the word cute (I’m being sarcastic here) but on the flip side of that sarcasm is ACTIONS speak louder than WORDS.  If Salesforce truly invests in a business that is impacting, let’s say, the environment positively, then I can get behind this mission.

So to answer the question is CRM a good investment?  The answer is YES.  CRM is on the TOP 50 ON SALE within TYKR.  With a score of 16/20, the financials are very strong.  With a MOS of 88% (share price of $252 vs a sticker price of $2,197), this stock has a lot of room to grow.

What do you think?

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  • 20 year back tested returns between 10% and 96%
  • 20 year history outperforming the S&P 500
  • Know when to BUY when stocks are GOING DOWN
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  • A source of truth to avoid bad advice from gurus and the news

All stock reviews are for entertainment purposes only. Reviews are not financial advice.

Blog Post Author
Sean Tepper

Top Stock Pick – PCTY (Paylocity Holdings)

Top Stock Pick – PCTY (Paylocity Holdings)

Stock Review of the Day
Stock:  PCTY (Paylocity)
Summary:  ON SALE

Score:  13/20
MOS:  99%
Share Price:  $162
Sticker Price:  $45,201

Is PCTY (Paylocity) a good investment?

PCTY is a cloud-based payroll and human resources software company.  They were founded in 1997 and are based out of Schaumburg, IL.  PCTY was one of the 5,000 fastest growing private companies according to Inc. Magazine in 2003, 2004, and from 2007 to 2014.  They were also listed in Glassdoor’s Best Places to Work in 2019.

Over the last few weeks, the majority of stocks have faced increased volatility.  In fact, the Nasdaq (primarily composed of tech stocks) is down about 8% but this isn’t true for PCTY as they reached an all time high of $165 this week.  

Why is this?

Here are a few reasons why you should pay close attention to PCTY, aside from the obvious score and MOS listed above.

1)  They just launched a new touchless time clock with thermal scanning.  Click Here to learn more.  Generally, employee time clocks are the most shared device by any organization which doesn’t exactly play nice with health conditions today.  This new thermal scanning device can scan your body temperature and recognize employees even while they wear a mask.  

This is a game changer and definitely ahead of the trend.  The more tech we can release that does NOT require our hands, the better.

2)  They introduced a new video feature that allows employees to easily record and send videos to other employees, complete survey’s, and manage recruiting and onboarding.  

It sounds like PCTY is empowering companies to shift away from long-winded emails and move towards quick video snippets.  I don’t know about you, but I would much rather watch a 15 – 30 second video rather then read a 5 paragraph email.

3)  They maintain relatively low debt.  Currently, PCTY has $100M in debt but prior to this most recent year, they had $0 in debt for almost 5 consecutive years.  

I did some homework on why PCTY accumulated this most recent debt and I can’t find an exact answer but my assumption is they are allocating debt to technical innovations such as the touchless clocks and video features listed above.  In this case, the debt allocation is smart.  Although the debt is $100M, they currently have about $65M in cash.  This is a good sign because they could use that cash to pay down a considerable amount of debt if they wanted.

4)  They are classified as an enterprise SaaS.  I’ve talked about this in the past.  Enterprise means they serve large corporations.  SaaS is Software as a Services which is a monthly or annual recurring revenue model.  When it comes to enterprise SaaS, large corporations typically sign contracts that extend over years.  Usually between 3 – 10 years.  The annual cost can range between hundreds of thousands on up to millions of dollars per year for just one corporate customer.  Overall, enterprise SaaS is highly profitable and scalable.  

5)  They are essential.  As long as corporations have employees, they will need software that handles payroll, workforce management, HR, Benefits, employee engagement, and more.  PCTY checks all those boxes in one platform.  PCTY is highly in demand and will remain in demand for the foreseeable future.

So to answer the question is PCTY a good investment?  The answer is YES.  I love stocks like PCTY because they are high performers and not yet popular mainstream stocks like Facebook, Amazon, Apple, Netflix, and Google.

A major benefit of TYKR is it finds great stocks before they become mainstream news. 

Here are a few examples of stocks before they became wildly popular…

Imagine buying Amazon for $125 in 2010.  Today Amazon is over $3,000.
Imagine buying Facebook for $25 in 2013.  Today Facebook is over $260.
Imagine buying Netflix for $60 in 2014.  Today Netflix is over $493.

With a score of 13/20, the financials are strong but the impressive data point is the MOS of 99%.  With a Share Price of $162 vs a Sticker Price of $45,201, this stock has a lot of room to grow.

What do you think?

Don’t miss out on great investments!

Join TYKR for FREE:  CLICK HERE

  • Find GREAT DEALS before they become mainstream news
  • 20 year back tested returns between 10% and 96%
  • 20 year history outperforming the S&P 500
  • Know when to BUY when stocks are GOING DOWN
  • Know when to SELL when stocks are GOING UP
  • See the real reason WHY a stock is ON SALE
  • Clean interface makes navigation fast and easy
  • Layman’s terms language makes TYKR more approachable
  • A source of truth to avoid bad advice from gurus and the news

All stock reviews are for entertainment purposes only. Reviews are not financial advice.

Blog Post Author
Sean Tepper

Top Stock Pick – CROX (Crocs Incorporated)

Top Stock Pick – CROX (Crocs Incorporated)

Stock Review of the Day
Stock: CROX (Crocs)
Summary: ON SALE

Score: 12/20
MOS: 79%
Share Price: $42
Sticker Price: $209

Is CROX (Crocs) a good investment?

Crocs was founded in 2002 and is based out of Niwot, CO. The shoe was originally developed as a boating shoe. The first model produced by Crocs, “The Beach”, was unveiled in 2001 at the Fort Lauderdale Boat Show in Florida, and sold out 200 pairs on the spot. It has since sold 300 million pairs of shoes to date.

Crocs has exclusive rights to a proprietary foam resin known as Croslite. The foam forms itself to the wearer’s feet and offers medical benefits according to a number of Podiatrists. Croslite is weather, mold, and mildew resistant.

I think most of you would agree that Crocs aren’t known to be the most fashionable shoe. That’s okay because in this case the phrase “Form Follows Function” should be applied as they are highly used by nurses, doctors, and medical industry personnel because of their comfort and non-slip traction.

Let’s take a step back and look at Crocs from a manufacturing standpoint…

A Croc shoe is made of ONE material, Croslite. In comparison, other shoes are much more complex. Nike, Adidas, Skechers, Vans, etc all contain FOUR OR MORE materials including polyester, rubber, foam, and cotton. This means Croc shoes are significantly less expensive to manufacture.

Crocs low manufacturing costs have allowed the company to have higher net profit margins compared to its US based competitors. Here are those numbers…

Crocs: 9.71%
Nike: 6.79%
Skechers: 6.64%

Here are the average retail price ranges…

Crocs: $20 – $40
Nike: $90 – $200
Skechers: $75 – $150

Here is how the competition stacks up within TYKR:

NKE (NIKE)
Summary: OVERPRICED
Score: 6/20
Share Price: $119
Sticker Price: $14

SKX (Skechers)
Summary: OVERPRICED
Score: 14/20
Share Price: $31
Sticker Price: $21

With a low price point as well as higher profit margins, this is one reason why Crocs is operating as efficiently as it is compared to the competition.

Aside from the financials, I did a little research on their philanthropic mission and Footwearnews.com reported in April that Crocs is giving away 20,000 pairs of shoes to health care workers.

I did a little further digging into other philanthropic activities and Nativepartnership.org reported in 2013 that Crocs donated 600 pairs of shoes to Native Americans on the Pine Ridge Reservation who struggle with diabetes. Native Americans have the highest prevalence of type 2 diabetes in the world. Their risk is twice as high as any other ethnic group. Crocs shoes are wider and aerated, adding significantly more comfort to those with swollen diabetic feet.

I love stories like this. Although 600 shoes doesn’t compare in numbers to the 20,000 listed above, it’s the action of making a difference that matters most.

Is CROX a good investment? The answer is yes because not only is this company run by good leaders who are truly focused on helping others, but the financials are equally as impressive. With a score of 12/20, the financials are solid and with a share price of $42 vs a sticker price of $209, this stock has some room to grow.

What do you think?

Don’t miss out on great investments!

Join TYKR for FREE:  CLICK HERE

  • Find GREAT DEALS before they become mainstream news
  • 20 year back tested returns between 10% and 96%
  • 20 year history outperforming the S&P 500
  • Know when to BUY when stocks are GOING DOWN
  • Know when to SELL when stocks are GOING UP
  • See the real reason WHY a stock is ON SALE
  • Clean interface makes navigation fast and easy
  • Layman’s terms language makes TYKR more approachable
  • A source of truth to avoid bad advice from gurus and the news

All stock reviews are for entertainment purposes only. Reviews are not financial advice.

Blog Post Author
Sean Tepper

Top Stock Pick – AAPL (Apple Inc) – Stock Split

Top Stock Pick – AAPL (Apple Inc) – Stock Split

Stock Review of the Day
Stock: AAPL (Apple)
Summary: OVERPRICED

Score: 10/20
MOS: -111%
Share Price: $131
Sticker Price: $62

AAPL and TSLA stock splits are all over the news. The Question is, which stock split should we pay attention to most?

This analysis breaks down the Apple 4-1 stock split and why it’s the best investment to pay attention to this week.

As you can see, AAPL is OVERPRICED within TYKR but we have a unique situation here. Before I talk about why AAPL is a good investment, I want to talk about the FOUR different stock investment strategies and where AAPL fits it.

The four strategies are defined as follows…

1) Value Stock Investing: Value stock investing is the strategy of buying ON SALE stocks that are a significant discount off the intrinsic value. This is essentially what TYKR does for you automatically. In fact, it goes a step further by adding a point system (0 – 20) to the stock. The higher the points, the less risk. In fact, if you simply use TYKR to find ON SALE stocks, you’ll make money 90% of the time.  It’s that easy.  I’ve been using TYKR to generate returns ranging between 15% and 50% for five years.  This year I’m up 80% because I used TYKR to buy ON SALE stocks during the massive dip in March of 2020.  Overall, value investing is a very easy way to build wealth.

2) Growth Stock Investing: Growth stocks are those companies expected to grow sales and EPS (Earnings Per Share) at a faster rate than the market average. TYKR is an excellent tool used to find value stocks not growth stocks but there is a way to find wise growth stock investments on your own. Keep in mind, there are a lot LESS growth stocks in the market than value stocks but if you find the right growth stock, you can make great returns. Also keep in mind, growth stock investing is riskier than value stock investing. Some stocks may be perceived as growth stocks but they can actually be speculative stocks that are driven by emotions. We’ll touch on speculative stocks as well as how to find growth stocks in a moment.

3) Dividend Stock Investing: Dividend stock investing is the strategy of buying stocks with dividends and getting paid quarterly for simply holding those stocks, no matter if the share price goes up or down. You can build wealth through dividend investing but it can take a long time. Value stock investing and growth stock investing are much faster ways to build wealth.

4) Speculative Stock Investing: Speculative stock investing is where most inexperienced investors can lose money. Bitcoin, marijuana stocks, and penny stocks (any stock less than $5 is classified as a penny stock) are speculative investments. These stocks are driven by emotions. A lot of people can fall into a FOMO (Fear of missing out) trap of trying to get rich quick but end up losing large sums of money. A great way to determine if a stock is speculative is to look within TYKR. If a stock is growing fast but is OVERPRICED, in most cases it’s speculative but in a few cases it may be a growth stock.

Here is how you find a growth stock and in this example, we’ll apply AAPL.

On the TYKR FAQ page I mention the “4 M’s” (Margin of Safety, Meaning, Moat, and Management). The 4 M’s are a technique used to find both VALUE stocks and GROWTH stocks. This is a common technique used by Warren Buffett.

Let’s dive in…

1. MOS (Margin of Safety): Margin of Safety is the principle of buying stocks that are 50% OFF the intrinsic value. If a share price is $100 and the sticker price is $200, that would qualify as a 50% discount. TYKR has classified AAPL as OVERPRICED. The share price is $131 and the sticker price is $62. We’re going to disregard the Margin of Safety in this case and move onto the other 3 M’s to see if AAPL is a growth stock.

2. Meaning: The business is easy to understand. In this case, most people around the world know Apple. It’s a household name for phones, tablets, and computers. Keep in mind, a speculative stock will not be a household name.  Most people will not be familiar with it and if they are, in most cases they won’t understand how the business makes money.  The meaning checks out for AAPL so we’ll move onto the next M.

3. Moat: The business has a wide moat. In other words, it’s hard to duplicate. Many would argue that the iPhone is the best phone on the market. This article from tomsguide.com gives many reasons why iPhone is better than Android including performance, hardware and software integration, ease-of-use, and priority on new apps.

Apple also has a strong brand moat. People buy Apple products because of the name “Apple”. It’s like buying a Coke product. You don’t walk into a store looking to buy a “cola”. You look for a “Coke”. When you’re looking for a “tissue”, you look for “Kleenex”. You get the idea.

Apple also has a cash moat. They have $200B available to spend on R&D (Research and Development). That’s a great place to be! They have the ability to create highly innovative products and they have the ability to withstand economic downturns. To provide a comparison, Samsung has $88B cash on hand.

Keep in mind, a speculative stock will not have a wide moat.  They will have a lot of competitors, be fairly easy to duplicate, and won’t have a lot of cash on hand.

The moat checks out for AAPL with flying colors so we’ll move onto the next M.

4. Management: The business is run by a great leader. In the case of Apple, Tim Cook has stepped in and done an excellent job running Apple since the unfortunate loss of Steve Jobs in 2011. In fact, this article from Forbes states that grooming Cook as Apple heir was one of Steve Jobs greatest accomplishments.

Keep in mind, a speculative stock won’t have a well known and highly respected CEO.

When you take a step back and look at the 4 M’s, AAPL checks the boxes on Meaning, Moat, and Management. Although AAPL is OVERPRICED, it’s indeed qualified a GROWTH STOCK.

Now let’s get to the TOP reason why you should be looking at APPL.

Apple just went through a 4-1 stock split. In other words, Apple cut it’s share price by 4. This means if you had one Apple share of $500 before the stock split, you now have four Apple shares of $125 after the stock split. In this case, a stock split does not make you 4X richer, it means you have 4X as many shares but the important thing to consider is it makes the stock more accessible! See, most people pay attention to share price and don’t spend the time or use TYKR to calculate the sticker price. So when a popular stock like AAPL has its price reduced, a lot of people will start buying it. That is happening as we speak!

Let’s take a look at the stock split history of AAPL.

In 1991 AAPL reached a share price of $79 and they did a 2-1 stock split which resulted in a new share price of $39.50. In four years the price went up to $68. That’s a total return of 72% and an annualized return of 14%. Pretty good.

In 2000 AAPL reached a share price of $135 and they did a 2-1 stock split which resulted in a new share price of $67.50. Timing on this stock split was bad due to the “dot-com bubble” so this stock actually went down to $22 and held there through 2004. That’s a total return of -67% and an annualized return of -24%. Don’t let this stock split discourage you. The “dot-com bubble” held many other tech stocks down for a few years. Now here is where things get really interesting…

In 2005 AAPL reached a share price of $76. They did a 2-1 stock split which resulted in a new share price of $38. Over the next 7 years the stock took off like a rocket! In 2012 the stock went to $667. That’s a total return of 1,655% and an annualized return of 50%. Very impressive!

In 2014 AAPL reached a share price of $633. They did a 7-1 stock split which resulted in a new share price of $90. That brings us to 2020 where we just saw the stock reach $500. That’s a total return of 452% and an annualized return of 33%. Also very impressive.

Overall, this was not the first stock split we’ve seen with AAPL and as you can tell, it won’t be the last. The stock is currently OVERPRICED which means it could go down but based on our analysis of the Meaning, Moat, and Management, this stock is bound to go up. If does go back down, relax. Hold it or buy more.

If you’re going to take advantage of a stock split opportunity, this is it.

What do you think?

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Blog Post Author
Sean Tepper