“Apple is hardly an undiscovered stock, but the company’s business is flat out booming. It reported its third-quarter results last month, and they were spectacular. Quarterly sales increased 32% to $4.84 billion while profits jumped 27% to $0.62 a share! That’s no surprise because iPod players were flying off the shelves. Apple shipped 8.73 million players, 35% more than a year earlier. And as far as I can tell, the iPod product line’s popularity will continue,” Tony Sagami, the owner and founder of Harvest Advisors, writes for Money and Markets.

Sagami writes, “Plus, the iPod’s success allows Apple to cross-sell other services and devices to consumers. For example, Mac computer sales ballooned to 1.61 million last quarter. That’s up 30% from last year and a company record for any three-month business period. And Apple has more tricks up its sleeve, too. The company is supposedly getting ready to enter the cellphone market with its own.”

“Sure, Motorola already has a cellphone that syncs with Apple’s iTunes music store and includes an iPod-like interface for navigating and playing digital music,” Sagami writes. “But Apple is known for its meticulous designs. The company will probably offer a full-fledged personal media device that includes a camera, vivid color monitor, complete iTunes features and integration, as well as a cellular phone. They’ll probably fly off the shelves.”

“One rumor – which I think is more right than wrong – says Apple placed an order for 12 million cellphones from Taiwan-based contract manufacturer Hon Hai Precision for delivery in the first quarter of 2007. That means we might see this new product early next year,” Sagami writes.

Sagami writes, “How might this device affect Apple’s bottom line? One forecast I saw estimated that an iPod phone could add $6 billion in sales and $0.70 a share in profits in 2007. While the numbers could change, an Apple phone could add a mountain of new profits. I think Apple will be a triple-digit stock in a matter of months, and that’s why my Elite Stock Trader subscribers are holding the shares.”

Full article here.

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Apple shares hit new all-time high – November 20, 2006