Daily Investment Tips

These days, Apple is worth about $375 billion, with shares up about 25 percent, to $403, this year. If the stock gains an additional 12 percent, Apple will have the world’s largest market value, surpassing ExxonMobil. In the last 11 years Apple has risen from low tens to the current levels.

Many are wondering am I late to the party, has the stock risen too high and you might buy at the top?

Analyst interviewed by Businessweek magazine think, Apple best days are still ahead and the stock is still rated a buy.

White isn’t worried about Apple’s abruptly coming down to earth. If anything, he and a handful of other analysts think Apple watchers on Wall Street may be substantially underestimating the potential of the company, which still only has a single-digit market share in mobile phones and personal computers. “I don’t remember a company of this size growing at this pace,” says White, who recommends the stock and predicts it could be worth $617 billion within a year—the Street’s highest target. “We can’t even model out some of the possibilities: an Apple TV set, huge growth in China, businesses racing to buy Apple laptops. It’s like a religion. It sounds crazy, but it could still be early for Apple.”

To understand the confidence don’t look at the raw number, look at the fundamentals. While Apple shares have soared higher, they’ve become cheaper in relation to earnings. The reality is, Apple profits have been growing faster than the share price.

written by Constantine Njeru \\ tags: 11 Years, Apple Laptops, Apple Stock, Apple Tv, Businessweek, Businessweek Magazine, Buy Laptops, China Businesses, Coming Down To Earth, Exxonmobil, Handful, Market Share, Mobile Phones, Personal Computers, Possibilities, Share Price, Stock Analyst, Stock Gains, Target, Wall Street

Apple stock has been a high flier for the last 10 years. One anlayst thinks Apple stock could even soar to $600. Ticonderoga Securities thinks Apple’s stock could skyrocket north of $600.

This bold prediction was made after CNBC reported, Apple has just inked a Iphone deal with China mobile. Analyst prediction was based on the following facts:-

• China Mobile is the world’s largest wireless carrier, which has 611 million wireless subscribers.
• In the US, when Verizon got hold of the Iphone, we saw a rise in demand in Iphone. This trend could repeat in China
• Heavy option buying on Apple stock.

written by Constantine Njeru \\ tags: 10 Years, Apple Stock, Bold Prediction, Buying Stock, China Mobile, Cnbc, High Flier, Iphone, Nbsp, Soar, Ticonderoga, Verizon, Wireless Carrier, Wireless Subscribers

For investors who had the courage to buy Apple stock back in 1997 when Steve Jobs made a return, they have had a ride of their life. Back in 199os Apple stock was trading in the single digits, there was talk of bankruptcy and Michael Dell famously said he thought the company should just be broken up and the money divided among shareholders, but today Apple stock is in the $250s range.What a ride!

Can Apple stock continue rising? Some investors think Apple stock best days are behind it but some investors believe Apple stock rise is just starting and that Apple will continue blowing past expectations.

Four Reasons Why Apply Stock may continue rising

MSNBC has an interesting article as to why investors should invest in Apple.The factors driving Apple are software, design, ecosystem and underrated market.

Apple will become the most valuable company in the world. Bet on it. In fact, go out and sell all your personal belongings, liquidate your 401(k), and buy Apple stock with every last dollar you own.

OK … on second thought, I wouldn’t advise that — it’s a bit rash. But there are ample reasons to believe that the company’s rise is just starting and that Apple will continue blowing past expectations.

The author of the article shows a scenario forecasting/predicting  how Apple revenues and profits will look like in 2014.

Read the full article at MSNBC

written by Constantine Njeru \\ tags: Apple Software, Apple Stock, Bankruptcy, Bet, Courage, Digits, Ecosystem, Last Dollar, Michael Dell, Msnbc, Personal Belongings, Profits, Rash, Second Thought, Shareholders, Software Design, Steve Jobs, Stock Prediction, Stock Rise, Stock Trading

We all know Apple shares are the hottest shares on wallstreet. In two years the stock as raced from $80 to the current $ 270s.  The rally has been driven by the success of the Iphone and now the Ipad. So, what could go wrong? What could spoil the party of the decade?

According to an article on barron online. The writer raises some red flags on apple stock , he quotes analysis by Bernstein Research analyst Toni Sacconaghi.

If you are considering investing in apple stock, the following is a list of five concerns and potential pitfalls for Apple stock or Apple shares.

1. Apple’s market cap is too large for it to outperform, and its image has migrated from underdog to Silicon Valley bully, which will increasingly pit competitors against it. He notes that both Microsoft and Cisco went on to under-perform the market when their shares hit the top of the Nasdaq market cap list. Another issue: Apple’s size means that it can no longer fly under the radar against its competitors, and there is increased risk that competitors will increasingly look to cooperate with each other and potentially undermine Apple.
2. Increased regulatory scrutiny threatens to undermine Apple’s powerful iOS ecosystem. He notes that Apple has begun attract the attention of regulators, “with the most potentially damaging investigation being the FTC examining Apple’s requirement that developers only use Apple’s tools when writing apps for its iOS platform.” He writes that Apple’s relatively modest market share makes it tough to argue that Apple has dominant market power, but that “were regulators to define the market differently, they could hypothetically contest that Apple enjoys 70%-plus share of mobile device app downloads.”
3. Sustained growth in iPhones will inevitably lead to margin pressure. “Given Apple’s relatively strong market share at existing partners, investors have expressed concern over the company’s ability maintain growth without lowering price to attract new customers, which would negatively affect gross margins,” he writes. Sacconaghi, notes, though, that the company increase its addressable market by 60% by adding the 13 largest global carriers that don’t already offer the phone.
4. Near-term expectations for iPhone and iPad units are getting heady, risking disappointment. For iPads, he says, the question is whether the initial success is a temporary distortion due to out-sized and unsustainable enthusiasm among Apple fans. For the iPhone, he notes, a good portion of recent unit growth has been driven by expanded carrier distribution; he says a risks exists that if the company is slow to add more carriers, unit sales could fall short of estimates.
5. Apple’s insistence on retaining cash points to a risk of the company squandering it on a flawed acquisition. The company has $41.7 billion in cash, about 17% of its market cap. It has the largest cash balance of any company in the S&P (ex financials). He contends that some investors think there is a risk the company one day make a value-destroying acquisition; he notes that the company’s acquisition history is limited.

To read mores see the original source on the article Barron Apple analysis

written by Constantine Njeru \\ tags: Apple Stock, Barron, Bully, Existing Partners, Ios, Ipad, Iphone, Margin Pressure, Market Cap, Market Share, Mobile Device, Nasdaq Market, Potential Pitfalls, Red Flags, Regulatory Scrutiny, Research Analyst, S Market, Silicon Valley, Strong Market, Wallstreet

According to bloomberg data news among 44 Apple analysts covering Apple stock ; 38 have “buy” ratings and four are neutral one a Mr. Lindberg is “Sell”

See story at globe & Mail

written by Constantine Njeru \\ tags: Amp, Apple Stock, Bloomberg, Data News, Globe, Lindberg, Mail