Apple Stock at Black Friday Pricing
by Charly Mann
11-30-2011: Apple stock is today trading at around $374 a share. That is at a current P/E of 13 and a forward looking P/E of a paltry 8.25. That is the same P/E as WALMART - a company that has barely grown in the last seven years. Apple on the other hand is growing rapidly and there are no signs of this momentum slowing down. Children and teenagers throughout the world recently placed Apple products well ahead of those of any other electronic or computer company in what they wanted to buy. Twenty-four percent said they wanted an iPad. In the same poll the iPhone and iPod were also high on teenager’s wish lists. In China the cult of Apple is huge, and it seems certain that China Telecom, one of the largest mobile operators in China, will offer the iPhone in early 2012. Also next year Apple will likely launch a 4G iPhone that will be a huge seller around the world.
Apple’s growth potential is tremendous. In the United States, for example, the smartphone market is still less than half of the cellphone market. Most analysts expect that it will be almost all smartphones by 2017. This means Apple’s iPhone sales will probably at least double in that time period. Last month in the U.K. 43% of all cellphones sold were iPhones.
Insider’s reports, as well as announced future product spending estimates, indicate that in 2012 Apple will introduce a radically improved iPad3 and probably launch Apple’s TV platform analysts are dubbing as iTV. With expansion of markets, the rapid growth of Apple Stores around the world and several great new products 2012, it is highly likely Apple’s revenues, profits, and stock price all increase significantly.
Many people I talk to in the investment community say that Apple stock is now the safest and best value investment in the stock market based on all the technical analysis. This may well be the best opportunity one has for a long time to buy Apple (AAPL) stock at a bargain price.
Zen and the Art of Investing in Apple stock
by Charly Mann
11-16-2011: Warren Buffett's rule for successful investing is to buy stock in good companies at a good price and keep them as long as the company is managed well. Apple (AAPL) is the best run company in the world. No other company comes close to producing as many innovative and well-made products that are also in such high worldwide consumer demand. Apple also generates incredibly good profit margins on its products. For example, a recent study showed that while Apple has only 4% of the mobile phone market it takes in 52% of the profits in the industry. Apple is also experiencing continued growth in all its major product categories. In October Mac sales grew 20% which was twice the rate of PC sales. More amazingly, in Western Europe where PC sales have declined by more than 10%, MAC sales have surged by 20%.
One more thing that is likely to increase the value of Apple stock is several analysts expect Apple to begin using its huge cash reserves of about $81 billion dollars to begin paying a dividend of about 2.5% annually which is about $10.00 a share at current market prices. This is likely to attract pension funds and other dividend investors to Apple stock and should to boost share value by 15 to 20%.
If you want to make money in Apple you should not be overly concerned when Apple shares drop by 2 to 5%. Apple will be an outperforming stock every year, but there will always be fluctuations on a daily and quarterly basis. Volatility is a fact of life today because of world politics and natural disasters. The best days to buy Apple are when the market is most pessimistic. Short term irrationality produces great bargains in Apple stock. The smart money is on Apple, and even acclaimed hedge fund manager David Einhorn who is best known for his short positions now has 10% of his $4.7 billion dollar portfolio in Apple stock.
Apple's Share Price in Wonderland
by Charly Mann
11-10-2011: Today Apple (AAPL) dropped below $384 a share as a totally false rumor said that Apple was slowing down production of its new iPhone 4S. The fact is Apple cannot keep up with the tremendous demand for this item. In our own checks today with Apple and Best Buy stores in California, New York, Texas, and Oklahoma, most stores are totally sold out of the iPhone 4S. This week there are also long lines in countries around the world at Apple stores with people hoping to buy this new model.
The other "news" that has spooked investors is the upcoming release of the Amazon Kindle Fire, which analysts say might sell 5 million units this quarter. The size of the tablet market is rapidly expanding and Apple's share of this pie will decline as more companies enter it, but the total number of iPads sold is greatly increasing each quarter and will continue to do so well into 2013. The iPad is a far superior product to its competitors and Apple will continue to make significant improvements that will keep it well ahead of everyone else. Apple also makes a very good profit on each iPad it sells, while Amazon, analysts say, is losing $50 on each unit. The crazy thing is that Amazon which indicated is may lose money this quarter is today selling at a PE of 110, while Apple, which looks likely to have by far its most profitable quarter in history, is at a PE of less than 13. This Alice-in-Wonderland disparity will not last indefinitely.
Apple's Explosive Growth will continue under Tim Cook
by Charly Mann
11-3-2011: Tim Cook is probably the hardest working and most efficient CEO in the world. Since he began effectively “acting” as Apple’s CEO in 2005 Apple’s stock has increased in value from $35.00 to more than $400 a share. Cook’s genius is keeping Apple steady and highly profitable while its array of creative people keep coming up with revolutionary new products. Cook’s focus is on ensuring that Apple has a constant stream of great new devices as well as significant improvements to their core products in the future. The spirit and creativity of Steve Jobs will continue to be the personification of Apple for decades to come, but it will be Cook who will ensure the steady hand and leadership that ensures the company’s explosive growth continues.
Apple CEO Tim Cook
Independent tracking research has found that Apple product sales for October (the first month of the current quarter) were exceptional, and that the company is well on its way to comfortably exceeding the rosy forecast Cook predicted for the quarter. We are confident that Apple’s (AAPL) stock will exceed $500 within the next nine months, and be close to $550 by this time next year.
iPhone 4S – World's Most Popular Compact Camera
by Charly Mann
10-27-2011: Apple may sell as many as 100 million iPhones this year. The new iPhone 4S includes a camera that rivals most point and shoot cameras and is far more convenient. This week the respected camera authority DigitalRev reviewed the iPhone 4S camera, and proclaimed that it was so good that it would eventually kill off compact cameras.
iPhone 4S Review by DigitalRev:
It is hard to find yearly sales numbers of compact cameras from the leading manufactures like Canon, Sony, and Nikon, but we doubt that any of them in the future will have sales that rival Apple's iPhone.
Apple's iPhone Sales Set to Explode this Quarter
by Charly Mann
Apple's CEO Tim Cook demonstrates Siri on the new iPhone 4S
10-24-2011: Last quarter Apple (AAPL) sold an incredible 17 million iPhones, but that was below analysts' projections. Now investment bank UBS has taken a close look at the initial sales of the new iPhone 4S and surveyed the worldwide demand for this new device, and they have projected sales of an incredible 42.5 million iPhones this quarter. This would mean well more than $22 billion sales in Phones for this period. To put this in perspective, Apple's entire revenue for last quarter was only slightly more than $28 billion. The bottom line then is that this will be a blowout quarter for Apple, and that when earnings are reported in mid-January 2012 the stock price will probably explode. Today investors are just beginning to see how great Apple's sales are trending, and Apple stock is already up more than $11.00 a share.
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