Today's Above Avalon stories:

AAPL Is Trading Like a Junk Bond
Apple Watch vs. Swiss Watch Industry in 2015
Thursday Q&A

We kick off today's email by discussing Wall Street's reaction to Apple earnings. AAPL shares are now trading like a junk bond when looking at AAPL's free cash flow yield. After going over free cash flow in detail, we calculate Apple's current free cash flow yield. We then discuss what Wall Street is suggesting by valuing AAPL with such a high yield and why it is similar to a junk bond. We then shift over to the latest data from The Federation of the Swiss Watch Industry. After comparing Apple Watch and Swiss watch sales trends, there are clear signs that the Apple Watch is impacting the Swiss watch industry. We conclude with Thursday Q&A and two questions from members: What's the point of share buybacks? Does Apple keep its foreign cash in USD denominated accounts?

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