the stock just put in a double bottom thursday and didnt move up on friday because of the options expiration issue with apple. let's see what happens next week
traders are allowed to trade however they want. apple will have its day soon, and catch up to the market in a big hurry before or after the next earnings report.
today was just an options expiration pause. apple is ready to take off over the coming weeks. the p/e ratio of 10 for the world's best company is possibly the most absurd thing in the stock market. double botton was put in place yesterday
as i mentioned in my email to you yesterday, dont worry about logitech giving back some of the gains, it always does this, just give it a week to digest that 5% move up. i'm looking at the potential for the game controller category and believe it is enormous and logitech will be 50% of worldwide share. keep an eye out for announcements of big console titles released on the iphone - like Call of Duty, GTA or FIFA. those will drive controller sales and logitech's stock price
i think that the combination of confidence by ceo and the new game controller moved the stock up, but hey logitech just has a pattern of big moves up and then consolidation of that move and then big move up. i think that 14 is the price after next earnings release. the advances in the stock will need to slow down a bit because logitech still has a large part of the business stuck in the negative growth PC sector. this game controller is going to be a big hit once a publisher releases a hit game like Call of Duty or FIFA on it. logitech will dominate the game controller category with 50% share worldwide (better product, worldwide distribution, parnterships with game publishers) - i think the iphone game controller can be a $150 million yearly business segment for logitech - maybe more. a $150 million business would be less than 3 million units - a single big videogame title hits 15-20 million units per year and i would guess that at least a quarter of console gamers will want a portable game and have an iphone. easily 10 million of these controllers can be sold. the market is not fully valuing this yet, but as soon as a few big games are released, it will become evident and will be the catalyst for logitech's growth next year. game controllers will be driven by big title releases, so any announcements of a big title will help logitech stock.
50% of the total volume of trading on the exchanges are traders with algos and apple's stock is probably more than 50% trading patterns. the deep liquidity of this stock makes it a perfect target. dont worry, early next week will be the big rise. we just put in a double bottom at 515. that is the pattern that traders and bigger investors wanted to see before they start moving it up.
what a load of bs. from the investor conference logitech ceo stated that they would be looking at more dividends and buybacks of stock based upon cash position, but that they needed to have a certain level of cash on hand in case any acquisition targets surfaced. logitech doesnt need to issue any new stock.
by the way, my guess is that this is another id of swisslakes, the guy who cant get over the fact that he sold out right before big moves up. swisslakes, your posts have no impact on the stock price, sorry to tell you. logitech is giving back a little bit of the gains from yesterday, same pattern as always, it will be back over 11 in another couple days and then poised for the next move up.
actually, today was not the best day to buy, it just popped 5%. logitech has this pattern of moving up and then it will sell off a little and then it pops up again. so i always buy on dips. if it dips down a few percent dont sell, just hang on for the next pop. you should read the presentation from the morgan stanley conference it gives some good information about what they are doing.
i saw him on posting on the zagg board recently, i think he might have moved from logitech to zagg. that would be a big mistake. i owned zagg and took a huge hit on my investment. zagg is a company that seems to have so much potential, but they just cant execute.
double bottom in place, now we can re-test resistance. this is the start of the next leg up in apple stock. we just need 1-2 days more to confirm that the rally off bottom is in place.
double bottom established. just needs 1 more day of sustained upside and it will be confirmed, then we can re-test 530-535 and move past it.
check out the game controller on logitech's site. very nice! it is going to dominate the market for iphone game controllers. this will open some doors for distribution of smartphone acessories. my guess is a launch in later Q1 2014 for iphone accessories from logitech.
we just need a few more upside days and this will be a really nice double pattern trading pattern, which will provide the base for the move up past resistance. 530 is within reach and then comes the big move to 575. the better news is that my logitech shares are up 5% as they introduced a gaming controller for the iphone.
this looks like a double bottom trading pattern to me, but we will need to have a couple strong days to confirm that the double bottom is in place. if it can keep going up for the next couple days, then that double bottom will be a very strong trading pattern to support a re-test of resistance. the next 2 days will tell the story.
if you go back six months i was a big believer in zagg, but then hales screwed it all up and i left the sinking ship and got into logitech (the difference is about 60% between zagg losses and logitech gains since then). hey, i could be wrong about zagg, maybe this time it will be different. but the one thing i have found to be true is that a management team that fails, will usually continue to fail. zagg is also in a hard spot in all categories - shield sales slowing, audio accessories very crowded with bigger, better brands, keyboards up against logitech, game controller - will be dominated by logitech. the only thing i like about zagg is that new machine to cut the shields at point of sale. could be very cool.
the street loves to hate apple. when leadtimes on the iphone 5S drop to 3-5 days it isnt because they increased production by 75%, it is because demand is now "soft". when the ipad mini lead times increase, it isnt because demand is so overwhelming, it is because supplies are so limited. all the data points related to sales show that the iphone 5S and ipad air and mini are hugely popular. bottom line is that apple is just getting better at managing the supply chain and pumping out more of them. this quarter earnings will be another "netflix moment" when wall street finds out that it is just wrong - again. i'm holding on to apple, the clock is ticking toward a big earnings upside.
check out that game controller on the logitech site. it will just crush the cheap design and manufacturing of zagg and moga. the big difference with logitech is that they have their own design staff and control all the engineering. zagg can only go to asian factories and have them design stuff. when you have a factory design it for you, it stinks. logitech is also the only company with the resources to launch the game controller globally and cross-market with the game publishers. if you are activision and going to release Call of Duty on the iphone, which game controller company do you want to partner with? there just isnt any debate. logitech will own 50% of the game controller market. this game controller is the first step of logitech into the broader smartphone market - this gets them distribution in new places and opens the door for when they introduce accessories in other smartphone areas. what happens when logitech moves into ALL of zagg's categories?
do you still want a catalyst for logitech? how about a sweet game controller? logitech's game controller makes the other ones look cheap and stupid. it is very well designed. now all they need is to have a couple really big console video game titles get released on ios7 in december to drive sales. also, they are selling this in the apple online store, and just wait until the apple stores start to sell it. i bet that logitech is the only game controller that apple carries in its stores and that the game publishers all co-market with logitech - after all, what other company has the resources to actually support this? once again, logitech's superior design resources and distribution/marketing muscle will make them the leader.