“Apple’s new products and impressive sales results should capture the interest of investors… There is no doubt that Apple’s new positioning will allow the company to experience some growth. They are essentially branching out into new market share in areas that were previously untapped. This is especially evident with iTunes, which may provide a glimpse into the future of the music industry,” Dustin Zahrt writes for Market Critic.
Zahrt writes, “Marketing strength and sales aren’t the only things Apple has going for it. It will be hard for investors to ignore Apple’s growing stack of cash. Since quarter 4 of 2002, Apple has enjoyed a cash-on-hand increase from 2.2 billion to 3.5 billion as indicated by its most recent quarter 3 report. Gross profits have also been up 4 consecutive quarters since 2002. Another improvement to note is the decrease of inventory and increase of receivables as compared to the last 4 quarters. All of these factors are positive catalysts for Apple’s stock.”
Zahrt writes, “Investors aren’t getting the discount they were receiving 6 months ago when Apple traded under $15 per share, yet the stock looks poised to perform well going forward. To achieve and maintain profitability Apple must continue to expand its market share by finding main-stream opportunities. Currently, Apple has only a small portion of the overall computer market. But armed with new, more powerful computers, and iTunes, Apple looks set to break out of its current niche.”
Full article here.