Apple (AAPL) stock just went bonkers over a recommendation just published in the FT by the old Legg Mason fund manager Bill Miller – he of the famous 15 year streak of beating the S&P 500. (Things didn't go so well for him after that) Pretty amazing that a guy completely out of the spotlight for a few years can move a stock like this but quite a move here in Apple. Miller says the stock is 50% undervalued for what it is worth.
In [Miller's] opinion, "Apple is much more like Nike, a consumer brand with great loyalty." It is a typically contrarian and optimistic view from the 63-year-old former military intelligence officer, who appears to be enjoying a second youth as stock picking comes back into fashion, rescuing a reputation as both one of the best and one of the worst investors of recent decades.
For instance, were Apple to keep all $137bn on its balance sheet and just put future free cash flow into the dividend, "that alone would put the stock up close to 50 per cent."
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