This transcript is automatically generated
All right we've been looking for a way to play the iPhone sales such -- -- -- buying Apple Stock my next guest says you should consider buying shares of Seagate Technology as a maker of computer hard drive and joining me Jack how associate editor was Smart money.
Dot com Jack.
Thank you for being here for being here 700 bucks a share I mean who's to stop and others who who can stop this -- how high could this stock go on the nicely price targets now 717.
What do you think.
Behind -- is so ultimately dependent on the enthusiasm of investors -- -- a thousand bucks a share -- feasible.
But the key here is that the stock is -- fifteen or sixteen times earnings -- it's just a smidgen more expensive in the broad stock market right now.
And if you and it's already the largest company in America -- stock market values what you're buying it here I don't think you should be buying it with the -- mammoth double my money in next to a three years is just.
You don't see that kind of growth with companies this large it becomes that much more difficult to expand the business that was so good value think at this point.
I think it's OK I think it's pretty much in line with the market and I don't think it's screaming bargains are you concerned that literally I guess to dispose of the profits that apple generates comes from the knife up.
It's all too many eggs in one basket it creates a risk free we all want to pick the companies that we own shares of to build market share but eventually market share become so large that becomes drive a risk that that they could have a misstep for lose that share so.
You know -- -- sorted out there that show that if historically let's say over the past fifteen years you would consistently bought company people -- by the by the industry leaders by the bus right business both terrible strategy historically speaking because if you're always buying companies that are number one in their industries.
That position tends to turn over -- -- haven't done grade are able talking about a thought about Seagate you'd like this company as a kind of an offshoot from my phone.
Technology why -- want to know what they can buy in order to it to sort of -- amount on the iPhone praising -- look at Qualcomm chip maker -- that's eighteen times earnings.
Mechanical heart drugs makes you -- you know -- hard drives of all types but this is a company that's perceived as sort of an iPhone victim because.
These Smartphones and tablet computers are taking -- place for personal computer right we no longer buy machine for these big bulky hard -- were not buying them because there's there's much we used to.
So here's a stock that's four times earnings it was deeply unloved on Wall Street it's quarter is expense does not real low relative earnings right.
But think of it where's all this data going it's not disappearing.
In the cloud -- -- the -- this company's apple.
Google Hewlett-Packard you know -- at the wrong Balmuth setting up huge data pharmacy where they store data like -- and -- hard drives there.
Businesses still booming at Seagate and it's it's a lot it's a safer low expectations way to get in on the Smartphone craze Angeles accelerator initiatives are getting back to --