The Motley Fool: The Best Blue Chip for 2007: Apple Computer, Inc.

“Love it or hate it, Apple is the new hipster in town. With innovative products and slick designs, everyone is rushing to play catch-up with this company. But is Apple set to emerge as the best blue-chip investment for 2007? You bet your Granny Smiths it is,” Katrina Chan writes for The Motley Fool.

“In the span of a few years, Apple’s brand, strategy, and products have been reinvented dramatically, and it shows on the company financials. From a product standpoint, since 1998, Apple has unleashed several versions of the iMac and MacBook, several iPods (the traditional iPod, the Nano, and the video iPod), and iTunes,” Chan writes.

“It’s also about the competition. I think there’s no argument that Apple is the dominating force in the digital-music world with iTunes and the iPod. And Apple is also gaining market share in the U.S. PC market. According to Gartner research for Q3 (which falls under Apple’s Q4), Apple grew 31% year over year, leaving the other main competitors in the dust, while the PC market shrank 2%,” Chan writes. “Combine that with the compatibility of Microsoft Windows on Apple computers, and I’d expect that market-share percentage to climb higher.”

Chan writes, “Apple is not a traditional blue-chip stock. It’s a company that’s capitalizing on current technology trends and consumer needs — mainly digital music and computers. Rumors are brewing of an iPod phone and online movie rentals. The possibilities are never-ending — kind of like those Mac/PC commercials. Yes, Apple is a newcomer, but it’s one that has proved it has staying power, with more than five years of stable and dependable growth behind it. Apple could quite possibly be the easiest money you’ll ever make — it has returned more than 600% over the past three years alone!”

Full article here.

20 Comments

  1. Connor MacBook,

    so do I, but I bought a few 2 years ago which are now doing nicely.

    By the middle of January ’07, I believe AAPL will be over a $100.

    It’s really nice when a company whose products you use and love, also makes a bit of money for you.

  2. It hit 84 today. ” width=”19″ height=”19″ alt=”wink” style=”border:0;” />

    Can you IMAGINE what is going to happen when that phone comes out? I think I’ll be able to pay my house off.

    -c

    MW: ‘art’ (is life, life is art)

  3. Yeah if Apple stock goes up another 600% in the next few years I will have a very nice nest egg in my 401K. I’ve been trading in and out of aapl for a few years, but now I’m just keeping it there.

    There does not seem to be much risk in Apple at the moment. The Macs are selling well and likely to post 2 M units this quarter. Pods are holding their ground and the new shuffle will likely help sell 20 M over Xmas.

    Add a Leopard in the mix and you’ve got another 0.1-1 billion in revenue next year.

    Other beauties like iPhone (poss) and iTV (def) could help with revenue.

    I myself am waiting for a video iPod to replace my 3G one. That could be a huge hit and have good margins too.

    MW “trade” – not this time buddy, I’m in for the long haul!!

  4. I picked up my first batch of AAPL at about $7.50 (adjusted). At that time, I looked at the price and the net assets and realized that the assets were more than the market value of the stock. Easy purchase.

    I’ve been adding to the portfolio since then.

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