Financial Research Report Paper Example | Topics and Well Written Essays - 2750 words

Financial composing - Research Paper Example apple, Inc. is the second-largest information technology corporation in the world by taxation after Samsung Electronics and also the third-largest mobile phone maker in the world (Ximnez, & Sanz, 2014)As the financial manager, I have made the decision to recommend to my investor that he/she invest heavily in the simple eye of the orchard apple tree Inc. There are a number of causal agencys behind my decision for the investor to consider investing in orchard apple tree. First, Apple is the best investment option owing to the fact that by the end of 2012, according to Bernstein analyst, Toni Sacconaghi (2012), the company solely was responsible for 17% of the gains of the whole Standard and Poors Five hundred. Secondly, Apples long performance over the last ten years has been outstanding. Since 2002, the companys stock soared 7,800% compared to S&P Five hundred (Birger, 2013). In my opinion, this performance/strength over the past ten y ears proves that the stock of Apple Inc. is a reliable investment at present and in the future. Additionally, while in the anterior periods Apple has been considered specifically as the growth stock company, presently I would consider Apple as not only the growth stock company but also the value play company. The reason behind my consideration is that according to Birger (2013), the company experienced 66% growth in pay in the past four quarters, a 1.8% dividend yield as well as a price/earnings ratio of 13.3 , which is lower than S&P 500s 16 P/E in 2012.All of the aforementioned reasons indicate that even though the companys stock has significantly dropped by almost 33% since the companys historic high of $ 700 (September 18th, 2012), Apple is still a inviolate investment option for the investor (Rich, 2013). Additionally, in August 2013, Carl Icahn (American businessman) invested quite a large amount shares in Apple saying that he thinks the shares are extremely undervalued. La stly, Apple is famous for its excellent innovation. For