Posts Tagged ‘Apple’
Apple Has More on Its Plate Besides Possible Tax Evasion
By George Leong, B.Comm. for Profit Confidential
Apple Inc. (NASDAQ/AAPL) has had a nice upward run since declining to its 52-week low of $385.10 on April 19, 2013.
While the maker of the “iPhone” and “iPad” tries to rejuvenate its business in light of increased and fierce competition from rivals, Apple is also currently caught in a fight against the tax authorities on allegations of tax evasion.
This is not what Apple and CEO Tim Cook want at this time, given the company is under immense pressure to deliver fresh products to the marketplace that have that “wow” factor.
The iPhone has been around since June 2007, and to tell you honestly, with the exception of a faster processor, larger screen, and some refinements to its “iOS” operating system, the iPhone has really not kept up with the advancements in some of the competing “Android” phones, specifically those made by Samsung Electronics Co. Ltd. through its increasingly popular “Galaxy” line.
Apple continues to lead the pack in the U.S., but as far as the global market, Nokia Corporation (NYSE/NOK) is holding onto the top market position. Nokia’s “Lumia” line, operating on the “Windows 8” mobile platform by Microsoft Corporation (NASDAQ/MSFT), is gaining some ground.
Yet for Apple, the landscape for smartphones and tablets is changing rapidly; it’s now about which company can bring the best phone, armed with the best functionality, to the market the quickest.
I’m in the process of looking at changing my smartphone from my current “iPhone 4” to either the “iPhone 5,” “Samsung Galaxy 4,” or the “BlackBerry Z10” or “BlackBerry Q10” (with the physical QWERTY keyboard) by Blackberry (NASDAQ/BBRY), formerly Research In … Read More
Technology Stalling, but for How Long?
By George Leong, B.Comm. for Profit Confidential
Technology stocks underperformed the S&P 500 and Dow in the first quarter of the year, but that’s no big deal, as I continue to see technology as a market leader.
The month of April saw some buying return to technology stocks, with the NASDAQ managing to outperform the S&P 500—that’s a start.
While we have seen momentum dissipate from technology stocks and Apple Inc. (NASDAQ/AAPL) lose some of its shine, I remain bullish toward technology stocks.
The chart of the Technology Select Sector SPDR (NYSEArca/XLK) below shows the current sideways trading channel for this index and the current test at the upper resistance line, as indicated by the top blue line.
If my technical analysis is correct, I expect technology stocks to take a run at the resistance.
Chart courtesy of www.StockCharts.com
According to FactSet, earnings growth for the information technology (IT) sector is estimated at 0.2% in the first-quarter earnings season—if Apple is excluded. FactSet is optimistic the sector will rally in the second half of this year, with an estimated growth rate of 12.0% in the third quarter and 11.2% in the fourth quarter. (Source: “Earnings Insight,” FactSet, April 19, 2013.)
Of course, if Apple rebounds, the growth rate will likely rise.
If we exclude Apple, FactSet estimates the IT sector will grow at 10.0% and 12.4%, respectively, for the third and fourth quarters. These are pretty darn good numbers.
My top areas for growth going forward include the mobile, Internet, communications, networking, IT, and cloud computing sectors.
I suggest adding both small and large companies across different businesses, which will add diversity, making your tech holdings … Read More
PC Sector Struggling; Time for One Last Goodbye?
By George Leong, B.Comm. for Profit Confidential
At my household, no one uses a personal computer (PC). There is the occasional use of a laptop, but even these mobile devices are becoming cumbersome to handle. In fact, the dominant devices of choice in my household are tablets, phablets (large smartphones with the capabilities of a tablet), and smartphones. These devices are small, light, mobile, and increasingly powerful enough to work on, whether it’s for work or for school.
What is occurring in my household is also happening across America and, in fact, around the world, according to my stock analysis.
Users are increasingly demanding smaller and more powerful devices. My stock analysis indicates this has been the trend, and it’s not going to change anytime soon, despite many efforts by the PC makers.
Dell Inc. (NASDAQ/DELL) was playing around with a hybrid laptop/tablet combo. It was pretty gimmicky, and it was just a failed attempt to override the tablet, based on my stock analysis.
Microsoft Corporation (NASDAQ/MSFT) recently launched PCs and laptops with its touchscreen “Windows 8” platform, but they’ve failed to catch on so far. Having played with these touchscreen computers, I still prefer the feel and portability of the tablet. I think the majority of users are in sync here, based on my stock analysis.
Bob O’Donnell of International Data Corporation (IDC) said, “At this point, unfortunately, it seems clear that the Windows 8 launch not only failed to provide a positive boost to the PC market, but appears to have slowed the market.” (Source: “PC Shipments Post the Steepest Decline Ever in a Single Quarter, According to IDC,” International Data Corporation web site, … Read More
Apple Sees Significant Downturn; Can It Recover?
By Mitchell Clark, B.Comm. for Profit Confidential
Stock market action has been exceptionally strong since the beginning of the year, and Wall Street must be making a killing with so many new initial public offerings (IPOs).
The lack of consistency in economic news is a real problem. Wall Street has been upgrading many popular stock market brands. It really is cheerleading.
Companies like AOL Inc. (NYSE/AOL), The Gap, Inc. (NYSE/GAP), priceline.com Incorporated (NASDAQ/PCLN), Under Armour, Inc. (NYSE/UA), and even Yahoo! Inc. (NASDAQ/YHOO) got upgraded. Google Inc. (NASDAQ/GOOG) was just rated a “Buy” by UBS after the position jumped $100.00 a share on the stock market.
The proof will be in the pudding. With so many of the big names at all-time record highs on the stock market, they should correct when they report. If they don’t, I will be very surprised. (See “Breakouts All Around; Final Countdown or the Beginning of a New Cycle?”)
The one stock I don’t know what to do with is Apple Inc. (NASDAQ/AAPL). It’s like there is a tremendous groupthink on Wall Street with this position.
Did the company just price itself out of its own market? Is it the revolt taking place in Apple retail stores? Or is it just a unified Wall Street trade? I don’t know what to do with this company.
I don’t use an “iPhone,” but when I bought a “MacBook Pro,” I received good in-store service from a particular associate. When I decided to buy more RAM (random-access memory), I called the store and asked for the same guy. Then I got berated by this punk kid who said that they don’t do this, … Read More
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