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. 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.

    Technically, the MacBook just came out this year. Up until the beginning of this year, Apple computers didn’t have the Mac at the front of the name because of the PowerPC chips. But 1998, if my history serves me correctly, is about the time the first iMac did indeed come out and that’s still probably Apple’s #1 selling desktop computer, in all it’s iterations. (The Apple II may have sold more units, I don’t know, but then it also wasn’t a Macintosh computer.)

  2. Oh, Stock Boy, Oh, STOCK BOY!

    Where are you NOW, Stock Boy? Changing your diapers, perhaps? I’ll bet you’ve got a load there right now, especially since AAPL is supposed to be in the high 40’s according to your great financial wisdom.

    Actually, I think “Stock Boy” has changed his nom de net to “Peterson.” Same addled brain, same pathetic envy of his betters. What asses.

    But for now . . . GO, AAPL! (Got 5,600 shares at $10.50 each, split adjusted. Had the same insight as “Investor” a bunch of years ago. When the stock price equals the sell-off value of a company, BUYBUYBUYBUYBUYBUYBUY!)

  3. Hello??? Did anyone forget about Apple having to report their stock readjustment on Dec 29th???

    Even if it’s not a huge hit on the backdating, Apple will still have to pay taxes on the readjusted amount.

    If they have to restate anywhere in the range of 1997 to 2002 then every stock holder is in trouble.

    I love Apple as much as anybody else, and I hope they don’t take a huge hit on Dec 30th.

    But I’ll be shorting AAPL betting on the backdate numbers.

  4. Backdate Bob,

    Even if they have to restate numbers it is not going to be a huge amount. The sum of shares that have been listed total less than $100M, maybe only 10M. Therefore the amount of money that needs to be adjusted can’t be more that 10 M.

    And who pays for that. Shouldn’t those who benefited from the options have to pay the difference. And wouldn’t that money go to Apple.

    Maybe Apple will have to pay more back taxes or even a fine. But given that the SEC are not conducting an investigation into the proceedings, I don’t think any fines apart from tax related ones will be issued.

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