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When $$$MR. MARKET$$$ was a young chemical engineering college student, his professor in his fluid dynamics class asked if anyone could use the greek letter symbol “Eta” in an application. Now I suppose the correct answer at the time would have been the absolute vertical vorticity (relative vertical vorticity + Coriolis effect) in fluid dynamics. However, $$$MR. MARKET$$$ had not had his breakfast yet, so he offered the following solution to all:
“I eta apple.”
To which Professor Glandt responded, “Very funny, $$$MR. MARKET$$$. Here’s an ‘F’…is it funny now?”
Anyway, there was nothing very funny about that apple and there certainly isn’t anything funny going on with this Apple.
Today I bought shared of Apple (AAPL) at 264.04. I will sell it in 4 to 6 weeks at 304.26.
Why buy Apple? There are a lot more reasons to buy it than to not buy it. Look at the stinking chart:
Apple has just released two amazing products, the Iphone and the IPad and the upgrades to these products are going to coming out on a regular basis. Everyone in the world is going to own one of these things and the competition is just way way behind. If you think you’re too late in buying this stock, don’t be ridonculous. The PE is only 22 and its forward PE is only 17! This stock, believe it or not, is still cheap!!!
Consumers, and investors, love the iPad. It is a smash success and AAPL stock is going nuts. It’s up 105% in the last 52 weeks. But that’s not enough to make $$$MR. MARKET$$$ think that he’s too late to the party. Oh no no no. There’s a lot more meat left on that bone. AAPL is already a powerhouse in many consumer areas, and the rise of the iPad helps put Apple at the forefront of another fast-growing industry. This is a recipe for continuous revenue climbs, which should result in continuous earnings rises as well.
As long as Apple maintains its current dominance, it’s tough to see many scenarios where the stock isn’t currently undervalued at $264.04 a share. With sales of the iPad, Ipod, Iphone – all industry leaders on the cutting edge of fad and fab - helping contribute to the bottom line, Apple has the type of product pipeline that just keeps on returning profit to shareholders.
The climb to $300 per share is just a function of whether or not people love Apple products or, in other words, is there someone else out there who is going to make a product that people love more than Apple’s products. If the answer is no, it’s inevitable that this stock will hit $300 but probably $400 as well.
ANAL-ysts are optimistic Apple’s third quarter which ends June 30. They expect Apple to report earnings of $2.81 a share on revenue of $13.78 billion for the quarter. The biggest problem, believe it or not, is the concern that iPad supply shortages may surface. The ANAL-ysts excpect iPad sales of 7.5 million units, which is absurdly low given the celebratory debut of this product. Apple Inc. said today that is has sold 1 million iPads in the month after its launch, meaning it's been selling more than twice as fast as the iPhone did when it was new. Users downloaded more than 1 million iPad applications from Apple's site and bought more than 250,000 electronic books from its online store during the first day. Don’t forget about the MacBook Pro which is also a home run product.
The thing that is amazing is that Apple seems to be really plugged into what a consumer wants and almost immediately upgrades its products based on this feedback. The iPod evolved into the iTouch based on what people wanted to do with it. I don’t even have to get into the math. Investing in Apple is simply a no brainer.
Think about how well the netbook did at high schools and elsewhere this past year. The netbook is a piece of crap when compared to the iPad. If you give any college student a choice between an iPad and a netbook, he is going to take the iPad every time. The iPad has potential to revolutionize publishing, gaming markets and portable computing. They aren’t going anywhere except into your house. How good is the iPad? It gives the owner access to a rich life, full of endless media and communication options, without ever leaving the device.
Apple is one of a kind in the consumer electronics world in terms of trying to get every last detail right with its products, and its latest acquisitions show the good side to this obsession. They are using a lot of their free cash flow to buy up start ups and roll them into their big machine like an amoeba eating yeast cells. This is where a lot of their future ideas are going to come from. A recent acquisition, processor specialist Intrinsity, is believed to have developed the microprocessor core used by Apple's A4 chip to power the iPad. It’s a great way to get innovative technology relatively cheaply. There is most likely many more of these to come and buying up these little start ups keeps away any potential unwanted competition.
Apple's other recent acquisition, Siri, makes a "personal assistant" app for the iPhone and iPod Touch. The app allows users to find relevant information by doing voice-activated searches for things like nearby restaurants, movie times, and local weather. It’s like walking around with your secretary 24/7.
In case you had forgotten, Apple’s stock has gone from $3 to $247 since Jobs' 1997 return to the company. His health appears to be stable and as long as he is there, the best and brightest will continue to want to work for Apple. That means new stuff will get invented and be sold. There is no reason at all to doubt their expansion. More than 85 million iPhones and iPod touches are in existence, up from zero in July 2007. IPhone users have downloaded 4 billion apps from Apple's App Store, and more than 10 billion songs, 33 million movies, and 250 million TV shows from iTunes. IPhone owners, who make up just 2% of total mobile-phone consumers worldwide use up 64% of all mobile browsing minutes.
Don’t forget about the Apps. It’s the Apps! More than 125,000 developers now work to make apps for Apple products. Apple pays them nothing…zippo. They give this stuff to Apple with the hope that users will buy their apps or look at the ads on their apps. Developers, many of them tiny startups, can write a single version of their app and reach the roughly 100 million Apple customers. It’s a competition among the geekiest of the geeks to get a pat on the head from Steve Jobs. A monster in the making indeed. Apple's head start in apps may be too great for any competition to overcome. Thirty-five thousand new iPhone apps have been produced since February, even as many developers have been working on offerings for the iPad.
What did the boss have to say?
“We’re thrilled to report our best non-holiday quarter ever,” said Chief Executive Steve Jobs in the company’s release.
That about says it all. With the recession in our rear view mirror and people playing catchup with consumer purchases, what do you think people will be buying this holiday season?
Let me know what you think of my write up. In the meantime. I am HUGE!!!
$$$MR. MARKET$$$
“I eta apple.”
To which Professor Glandt responded, “Very funny, $$$MR. MARKET$$$. Here’s an ‘F’…is it funny now?”
Anyway, there was nothing very funny about that apple and there certainly isn’t anything funny going on with this Apple.
Today I bought shared of Apple (AAPL) at 264.04. I will sell it in 4 to 6 weeks at 304.26.
Why buy Apple? There are a lot more reasons to buy it than to not buy it. Look at the stinking chart:
Apple has just released two amazing products, the Iphone and the IPad and the upgrades to these products are going to coming out on a regular basis. Everyone in the world is going to own one of these things and the competition is just way way behind. If you think you’re too late in buying this stock, don’t be ridonculous. The PE is only 22 and its forward PE is only 17! This stock, believe it or not, is still cheap!!!
Consumers, and investors, love the iPad. It is a smash success and AAPL stock is going nuts. It’s up 105% in the last 52 weeks. But that’s not enough to make $$$MR. MARKET$$$ think that he’s too late to the party. Oh no no no. There’s a lot more meat left on that bone. AAPL is already a powerhouse in many consumer areas, and the rise of the iPad helps put Apple at the forefront of another fast-growing industry. This is a recipe for continuous revenue climbs, which should result in continuous earnings rises as well.
As long as Apple maintains its current dominance, it’s tough to see many scenarios where the stock isn’t currently undervalued at $264.04 a share. With sales of the iPad, Ipod, Iphone – all industry leaders on the cutting edge of fad and fab - helping contribute to the bottom line, Apple has the type of product pipeline that just keeps on returning profit to shareholders.
The climb to $300 per share is just a function of whether or not people love Apple products or, in other words, is there someone else out there who is going to make a product that people love more than Apple’s products. If the answer is no, it’s inevitable that this stock will hit $300 but probably $400 as well.
ANAL-ysts are optimistic Apple’s third quarter which ends June 30. They expect Apple to report earnings of $2.81 a share on revenue of $13.78 billion for the quarter. The biggest problem, believe it or not, is the concern that iPad supply shortages may surface. The ANAL-ysts excpect iPad sales of 7.5 million units, which is absurdly low given the celebratory debut of this product. Apple Inc. said today that is has sold 1 million iPads in the month after its launch, meaning it's been selling more than twice as fast as the iPhone did when it was new. Users downloaded more than 1 million iPad applications from Apple's site and bought more than 250,000 electronic books from its online store during the first day. Don’t forget about the MacBook Pro which is also a home run product.
The thing that is amazing is that Apple seems to be really plugged into what a consumer wants and almost immediately upgrades its products based on this feedback. The iPod evolved into the iTouch based on what people wanted to do with it. I don’t even have to get into the math. Investing in Apple is simply a no brainer.
Think about how well the netbook did at high schools and elsewhere this past year. The netbook is a piece of crap when compared to the iPad. If you give any college student a choice between an iPad and a netbook, he is going to take the iPad every time. The iPad has potential to revolutionize publishing, gaming markets and portable computing. They aren’t going anywhere except into your house. How good is the iPad? It gives the owner access to a rich life, full of endless media and communication options, without ever leaving the device.
Apple is one of a kind in the consumer electronics world in terms of trying to get every last detail right with its products, and its latest acquisitions show the good side to this obsession. They are using a lot of their free cash flow to buy up start ups and roll them into their big machine like an amoeba eating yeast cells. This is where a lot of their future ideas are going to come from. A recent acquisition, processor specialist Intrinsity, is believed to have developed the microprocessor core used by Apple's A4 chip to power the iPad. It’s a great way to get innovative technology relatively cheaply. There is most likely many more of these to come and buying up these little start ups keeps away any potential unwanted competition.
Apple's other recent acquisition, Siri, makes a "personal assistant" app for the iPhone and iPod Touch. The app allows users to find relevant information by doing voice-activated searches for things like nearby restaurants, movie times, and local weather. It’s like walking around with your secretary 24/7.
In case you had forgotten, Apple’s stock has gone from $3 to $247 since Jobs' 1997 return to the company. His health appears to be stable and as long as he is there, the best and brightest will continue to want to work for Apple. That means new stuff will get invented and be sold. There is no reason at all to doubt their expansion. More than 85 million iPhones and iPod touches are in existence, up from zero in July 2007. IPhone users have downloaded 4 billion apps from Apple's App Store, and more than 10 billion songs, 33 million movies, and 250 million TV shows from iTunes. IPhone owners, who make up just 2% of total mobile-phone consumers worldwide use up 64% of all mobile browsing minutes.
Don’t forget about the Apps. It’s the Apps! More than 125,000 developers now work to make apps for Apple products. Apple pays them nothing…zippo. They give this stuff to Apple with the hope that users will buy their apps or look at the ads on their apps. Developers, many of them tiny startups, can write a single version of their app and reach the roughly 100 million Apple customers. It’s a competition among the geekiest of the geeks to get a pat on the head from Steve Jobs. A monster in the making indeed. Apple's head start in apps may be too great for any competition to overcome. Thirty-five thousand new iPhone apps have been produced since February, even as many developers have been working on offerings for the iPad.
What did the boss have to say?
“We’re thrilled to report our best non-holiday quarter ever,” said Chief Executive Steve Jobs in the company’s release.
That about says it all. With the recession in our rear view mirror and people playing catchup with consumer purchases, what do you think people will be buying this holiday season?
Let me know what you think of my write up. In the meantime. I am HUGE!!!
$$$MR. MARKET$$$
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