“July 19, I laid out the investment case for Apple to move an additional $200, from its then-current price of $376. Since that time, Steve Jobs has resigned, large multinationals have warned of economic slowdown and prospects for greater employment do not appear in sight,” Darcy Travlos writes for Forbes. “Yet despite these negatives, the stock has appreciated 7% and the investment case for Apple remains intact.”
Travlos writes, “Premium brands trump economic slowdown due to middle class growth… Despite the overall economic malaise, high-end quality or luxury companies, such as Prada, Tiffany, LVMH continue to deliver strong growth through bringing luxury products to growing markets like China. While China faces slower-paced growth, its middle class continues to earn more than they ever have before and is spending on brands with cache. Apple delivers cache.”
“The two risks to the stock outlined in the previous article were Steve Jobs succession plan and iPad competition,” Travlos writes. “The stock weathered Steve Jobs departure without missing a beat and the iPad continues to dominate and set the standards in the tablet market.”
Read more in the full article here.
[Thanks to MacDailyNews Reader “Fred Mertz” for the heads up.]