Daily Investment Tips

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

Verizon finaly gots it’s hands on the Iphone, the big question is how the Iphone will impact on Verizon Revenues, profits and ultimately Verizon stock.

When Verizon reported their 2010 financial results, Verizon communications Executives projected revenue growth of between 4% and 8% in 2011, well above 2010′s 1.9%. They also estimate 11 million IPhone activations this year.

11 million iPhone activations is not peanuts, but keep in mind Verizon is spending near $4 – 5 Billion to subsidise the Iphone. That means the Iphone subsidy will eat into the profits.

Verizon stock prediction / forecast 2011

Verizon shares are currently trading 16 times 2011 forecast and historically the shares EPS has been 15. The stock now seems to be as high as it can get for 2011.

Expect the stock upside to happen, starting in 2012, because that is when the company will start showing the benefits of investing in Iphone. When announcing 2010 results, the company said it expected earnings-per-share growth in 2012 to about double 2011 number.

To quote Verizon executives thoughts on the future of the company “really explode over the next several years.”

written by Constantine Njeru \\ tags: Earnings Per Share, Financial Executives, Iphone, Iphone Activations, Peanuts, Profits, Quote, Share Growth, Stock Forecast, Stock Prediction, Stock Shares, Subsidy, Verizon, Verizon Communications, Verizon Stock, Year 11

Apple Inc seems to have started financial year 2011 the same way it ended financial year 2010: At a break necking speed!

Apple Quarter 1 2011 financial results

Apple Inc. says it sold more than 7 million iPads, about a million more than expected. It sold more than 16 million iPhones in the quarter ending December 2010.

Net income jumped to $6 billion, or $6.43 per share, up from $3.4 billion, or $3.67 per share. Revenue jumped 71 percent to $26.7 billion.

New Years Message from Steve Jobs

“We are firing on all cylinders and we’ve got some exciting things in the pipeline for this year including iPhone 4 on Verizon which customers can’t wait to get their hands on.”

written by Constantine Njeru \\ tags: Apple 1, Break, Firing On All Cylinders, Ipads, Iphone, Iphone 4, Iphones, Necking, Net Income, Pipeline, Q1 Results, Share Revenue, Steve Jobs, Verizon

We know the Iphone exclusivity has kept AT&T in wireless business. With the Iphone exclusivity set to end anytime in 2011 investors have a reason to be concerned with AT&T stock.

If you believe the loss of Iphone exclusivity will have a negative impact on AT&T, with subscribers jumping over to Verizon or slowing subscriber growth then you can profit from the loss by shorting AT&T stock.Talk to your broker about the possibility of shorting AT&T stock.

What AT&T Thinks?

According to AT& T filing with SEC, “We do not expect any such terminations to have a material negative impact on our wireless segment income, consolidated operating margin or our cash from operations,” AT&T said

AT&T said more than 80% of its contract customers are on family or business plans that are less likely to see turnover.

What Business analyst are Saying,

Some surveys are telling us as many as 23% of AT&T users are likely to switch to Verizon when the Iphone goes to Verizon.

It’s hard to predict the impact of the loss of Iphone exlusivity, any position an investor takes on AT&T stock now will be speculative.

written by Constantine Njeru \\ tags: Amp, Business Analyst, Business Plans, Contract Customers, Exclusivity, Investor, Investors, Iphone, Negative Impact, Operating Margin, Segment Income, Stock Analysis, Subscriber Growth, Subscribers, Surveys, Terminations, Turnover, Verizon, Wireless Business, Wireless Segment