1. Earnings Central: Begin with the Earnings Picture
The Earnings Central tab of the Navigation bar lays out our earnings outlook including what we believe Apple's future TTM will be in every future quarter through 2012. We also lay out where Apple's stock price will be based on certain P/E assumptions.
Analyzing every detail of the earnings outlook and understanding what Apple will likely report in terms of EPS is the first element of the Bullish Cross Broad Approach to Apple. If you know the earnings outlook, then you can start to focus on the P/E outlook. If you know the P/E outlook, then you know the price outlook. Once you know the price outlook, then you can move to the investment side of the equation.
2. Valuation: Creating Price Targets
The Valuation tab focuses on formulating price-targets based on what type of a valuation we believe Wall Street will give Apple at some point in the future. For example, in the Apple Investment Report, we made the case that Apple would conservatively trade at least above a 12.5 P/E ratio in the fall of 2012. Based on our expectations for $40.00 in EPS, that would put the stock at $500 a share.
The Valuation tab of the "Apple Research" link in the Navigation bar, focuses exclusively on this type of content for every quarter for the next few years.
3. Apple Articles: Researching the Intangibles
The third part of the "Apple Research" section of Bullish Cross contains a link to every Apple Article we've ever written. It provides a lot of context and tackles a lot of intangible issues for the earnings and valuation side of the equation.
Intangible issues might including looking at the stock's seasonality. How the stock trades during the first-half of the year relative to the second-half is key to figuring out where the stock might be trading during a particular time-period. So the Apple Articles part of the research tab lays out all of the general Apple information.