Apple - Dropping from its heights
High level summary Thesis : Slow Grower / Stalwart that is hit heavily by stream of negative news. As apple fell from its heights, I will be grabbing a bite (Mid conviction position) at around USD165-170. There may be strong short selling volume as Wall street hyperventilate over the China - US trade war, Yield curve worries and rumors of poor I phone sales (Probably factual but exaggerated to some extent). I am buying Apple conservatively as it is relatively cheap, but its moat is not considerably wide especially in the fast moving technology /hardware - software industry. Instead of valuing company as a technology stock, I value apple as a high spec consumer product company (branded goods company) with cyclical cash flow (hardware launches), smoothed by ongoing annuity inflows (growing software business). The power of its brand and design focus, sticky diehard apple fanboys, strong cash flow, good capital allocation decisions and possibility of innovative / upgraded pr...