Apple bandwagon is inevitably destined for a trip up.
According to WSJ, AAPL is on the top of stocks list
#1 AAPL, #2 GOOG , #3 QCOM, #4 MSFT, #5 NWSA
In a good agreement with
** I Know First algorithmic system** stance on these stocks.
In Q3, Technology stocks in the S&P 500 scored one of the better performances, with the sector (XLK) rising 7% in price and besting the 5.8% price-return for the S&P 500.
The 71 stocks rose an average of 4.2%, which not only trailed the return of the sector but also lagged the overall market. What's going on?
Google and Apple is all the story.
The sector was certainly boosted by GOOG's 30% gain and AAPL's 14% jump.
In accordance with
**I Know First algorithmic system** forecast.
Apple remains a cash machine. At today's $667, Apple now trades for 24 times trailing 2011 earnings. This stock remains relatively cheap, considering the fact that Apple is averaging 66% average annual net income growth over the past four years. For Q3 2012, Apple closed out its books with $117 billion in cash and investments to cover $51 billion in total liabilities on the balance sheet. One Apple share therefore represents $71 in built-in net liquidity, after Peter Oppenheimer, CFO, effectively writes a check to pay off all debt.
Apple has come out with a strong product and continues to set standards in the Phone, Tablet, and computer space for the non-geek, which represents the majority of mankind.
Appleis a very powerful company and there are very few people that will doubt that fact. Apple is the only technology company that can choose to control the earnings power of other companies at will. Remember that Apple saved Sprint from looming bankruptcy when in 2011, Sprint gained license to sell Apple’s iPhone and it became a success story immediately. That said, at the recent unveiling of Apple’s iPhone 5, some key announcements were made while some expected announcements weren’t made, which saved some technology companies like Netflix, Pandora, and Facebook and also upset some others.
Agree with you:
Apple is currently in the process of initiating its dividend and share repurchase program. The board of directors authorized a $10 billion share repurchase program commencing in fiscal year 2013. More importantly, the company released the iPhone 5 just days ago, which caused the stock price to surge past $700 for the first time. Soon afterwards, AAPL stock fell back to around $675. Much has been made of this dip in the stock price. However, the stock is following the trends of previous iPhone announcement and launches. Apple's stock historically surges forward, retreats, and then continues to increase in value for the next year, as was the case with iPhone 4 and 4S.
It seems reasonable to keep in mind that by 2013 smartphones are expected to represent 54% of the global cell phone market. iPhones constitute around two-thirds of Apple's profit, which indicates that the future growth potential for Apple's flagship product is pretty bright.