“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.
Related article:
Apple shares hit new all-time high – November 20, 2006
and thats why I am converting my 401k. I just hope it’s not too late!
This makes me even MORE glad I bought Apple at $15 a while back….I even encouraged my wife to buy it when it was $73….Don’t listen to stockbrokers who tell you to sell it…EVER.
Not until it’s time to cash out and buy the house in the islands.
Glad I bought 500 AAPL at $13 before the last split. I’ve got $500 in an envelope to waiting for my Apple phone. My T-Mobile contract is up in January, how’s that for timing?
I wonder if Michael Dell was smart and bought some Apple stock? Currently Apple’s Market Cap is just a hair shy of 32% more than Dell’s Market Cap — $56 billion (Dell) to $73.86 billion (Apple). The difference is $17.86 billion — almost the market cap of GM at $19.33 billion.
is it possible for foreigners to buy AAPL share?
marquez: Exactly what I was thinking. Anyone?
I can’t see why a foreigner cannot own AAPL shares. Your best bet is speak to a local stockbroker.
I am Canadian and live in Holland and bought plenty of AAPL. I’m ridding the gravy train and I’m not planing to jump anytime soon!
Apple has 6% of the computer market and 0% of the cell phone market. In A Just World these numbers would go to 60% and 10%, which means $300 per share in my book.
Anybody want to guess a cap? Dion has $300.
Since I can predict the future (seeing as how I am God after all), I see AAPL at Google-like numbers.
But, I am not a stock anaylist…I’m just a God.
Yes, Apple is traded internationally, you can even buy it in Moscow and Singapore – so go ahead boys and girls buy away, there is moeny to be made here
So let the games begin! AAPL up $.99 as of this writing to $87.46! (Where ARE you, “Stock Boy”?)
Apple will never hit $300 per share. It will be split before it even gets close. Back on these discussion boards back in Jan. I said Apple stock would end their year at $100 per share. I was kind of worried back in August, but looks like I might have been right after all. And this isn’t even my job. I was telling people to buy back when it was a split adjusted $8 per share, and I bought when I could at $35, $45, $55, $65 and $75. A little bit each time. I don’t have much, but it is a nice third of what I do have. And it’s up about 40% total. Apple will probably split some time in Feb. or March of 07. And the price will be around $110. I need to go find where I predicted the $100 at the end of this year, I know it was early Jan.
“Stock Boy” has changed his name to Peterson, ya’ know. Wonder what he’ll have to say when Apple Computer is bigger than General Motors!
@ Dr Mcr: “is it possible for foreigners to buy AAPL share?”
Yes, but in the UK at least, you cannot hold them directly – you need to hold them in a nominee account. Best to talk to your bank or broker since the rules vary across countries.
“I can’t see why a foreigner cannot own AAPL shares. Your best bet is speak to a local stockbroker.”
Of course it is. Saudi’s own a HUGE chunk of american companies through stock. We’re talking TRILLIONS of dollars worth. Prince Al-Waleed bin Talal is a major investor in American companies and Im quite sure he owns huge chunks of Apple.
So find yourself a broker and get buying.
” I need to go find where I predicted the $100 at the end of this year, I know it was early Jan”
Why do you need to find that? A lot of people, including myself and a bunch of so called experts predicted it would go this high. Of course you and I were doing it mostly on wishful thinking and a slight understanding of just what Apple is doing. So settle down Nostradamus and just enjoy your (our) newfound riches.
Yes, no doubt AAPL is performing nicely. One important thing to consider is that Apple will be re-stating financial earnings before the end of the year which could be very bad for the stock. Just a warning.
I hope so, that could create a great buying opportunity.
From Scott: “Apple will never hit $300 per share. It will be split before it even gets close.”
If you own 1 share today and that share spilts several times, and two years from now you have 10 shares each worth $30, your single share went to $300. Any fool can see that. So yes, a $87 share today could be $300 at some time in the future.
Don’t you love it when somebody tries to talk down to Apple shareholders and then makes authoritative predictions which turn out to be hopelessly wrong ?
Here’s one example from less than a month ago –
Posted on MDN by MoMo Trader Oct 23, 06 – 01:49 pm
The AAPL breakout above $80 today may not be sustainable. The stock is actually riding on the strength of the broader market (Dow, Nasdaq, S&P 500).
AAPL itself is significantly overbought. Here’s the evidence:
1. The daily RSI(5) indicator is at 86 (anything over 70 is overbought)
2. AAPL is above its upper Bollinger Band, which is bearish – shares tend to snap back and close inside the Bollinger Bands.
3. The MACD line and MACD signal show a negative divergence with the stock price. This is almost always bearish – it shows the stock has gotten ahead of its moving averages, and stocks tend to snap back.
4. AAPL is approaching significant resistance ahead, between the $81 and $85 levels, with an intraday high of $86.40 (set on January 12, 2006).
5. Today’s volume as of 13:49 EDT is 19.0 million shares and will probably reach ~25 million shares by market close. The average volume is about 25.7 million shares, so at best today’s high will be set only at average volume. This is mildy bearish – you want new highs set on high volume, not so-so or average volume.
6. Today’s new highs have been set on declining volume, as compared to the 3 trading days after the earnings report.
7. The broader market (DJIA, Nasdaq, S&P 500) are all up significantly today, which helps raise AAPL. This isn’t bearish in and of itself, but if the broader markets correct (which is likely, after the long summer rally), AAPL will probably be brought down with them.
Conclusion: AAPL is trending up, but the breakout abover $80 may not be sustainable.
Marquez –
I’m a UK resident and have loads of Apple shares. The best way that I know to buy them is through an on-line account with a UK broker. I use Hoodless Brennan, but there are plenty of others.
Be warned, it’s a very volatile stock and it can fluctuate very wildly. When investing in Apple from the UK, you’re obviously gambling on how well Apple does, but also on how well the dollar does against the pound.
Bear Stearns posted a great analysis of AAPL’s long-term prospects here.
To Alan Audio:
You know, they were saying the exact same thing when Apple was trading at $70.
And before that, when it was trading at $60. One “star analyst” even was issuing a sell on Apple.
The problem with all these technical analyses is that they don’t account for what Apple will do in the future. Do any of these thigns like RSI and MACD lines account for the iPhone adding $6 billion in incremental in 2007? No. Because it hasn’t happened yet.
Of course, AAPL might experience a pull back if the iPhone doesn’t materialize as expected in January. But when you’re looking at Apple becoming a $30 billion company in annual revenues in fiscal 2007 with profits approaching $3 billion, $80 a share is looking quite cheap.
Technical analysis when it comes to AAPL is short-signed and tunnel-visioned.
I know this is evil and twisted, but I hope that the stock does go down a little bit, that way I can buy a bunch of it since we all know 2007 will show huge increases in Apple’s profits. The MacBook seems to be the computer of choice among all the “people going off to college” types, schools are starting to go back to the mac, the iPod is booming, and the iTV has major potential. Add the possibility of an iPhone (The one Prodcut I’m most uncertain about) and this could be an interesting year for Apple computer. Let the stock drop to $50 and then boom up to $200.
MW: Hit, as in I want those numbers to go down before they hit the highest amount.