Louis Navellier:
My Blue Chip Growth subscribers and I have taken a big bite out of Apple (AAPL)–to the tune of 354% profits since December 2004! Apple is benefiting from traditionally strong computer sales as well as the explosion in digital music, which it dominates with its iPod.
In case you don't know what the iPod fuss is about, just ask a teenager. (By the way, when your teenager starts driving, they'd prefer to have a car that works with their iPod.) Apple also recently exploded onto the cellular scene by introducing its iPhone, a product that was anticipated long before it reached store shelves. And of course, for those of us who haven't hopped onto the latest craze of iPods and iPhones, we best respect Apple for its quality computers. Because they are UNIX-based they are much less vulnerable to computer viruses. Also, Apple's G4 and G5 Macintosh computers, with their Motorola processors, are very adept at processing digital pictures and movies, which are almost as popular as digital music.
The company had a great first quarter, with sales up 34.8% and earnings up 54.4% to $1.62 a share, which was an 8.6% surprise. However, shares sold off more than 10% on cautious second-quarter guidance. Listen, this company always issues cautious quarterly guidance and then posts huge surprises. This stock is mostly about Mac sales, and Apple will continue to capture more market share in the computer world. By the way, that new Leopard operating system is hot–my new Macbook Pro laptop runs on it!
Steve Jobs stirred up a bit of controversy recently when he disclosed that he's been battling a rare form of pancreatic cancer, but hid the news from shareholders for 9 months while he sought treatment. Even while Mr. Jobs takes the time he needs to hopefully reach a full recovery, the company remains in good hands. Analysts are finally starting to figure out that it's Apple's computer sales that will help ensure its future profitability.
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Michael Saltvick, 03.28.08:
I rode apple all the way up and all the way down. Finally the short selling bears are disappearing and we can get things back to a semblance of order. I note that the downfall came from lowered guidance last announcement date. The analyst community apparently didn't believe AAPL's guidence as their collective wisdom is still 0.10 over guidance. If AAPL doubles their market share of computers from here, they will still only have about 10% share or less. Possible? You bet. I own AAPL and will buy more after it passes 150.George Daly, 03.27.08:
Yes, Apple is a very good company but I strongly suggest that the market is overlooking the huge near term potential of Microsoft which has emerged from the doldrums with some great new products, and a new revenue stream with its OneCare all in one security and PC maintenance service. MS Office 2007 is terrific and Windows Vista is a hot new operating system which is about to win over all the doubters who are so attached to that relic of the past, Windows XP. Don't underestimate Microsoft. They are about to emerge from a long swoon where their attention was diverted from their software business to fighting governments and courts. Most of that nonsense is behind Microsoft now and they have turned their focus to the business of their business, software. The numbers, I predict are about to reflect this new reality.Steven Forbes, 03.26.08:
Both the company and its products are cutting edge. My year-old i-Pod nano gets daily use during my 45 minute walk, and it still sounds as good as day one. My son's recent MacBook Pro purchase had all of its technology upgraded (at no extra cost). It now outperforms virtually any Windows based machine with a better OS and web browser, and can treat the desktop with the same ease and simplicity as the i-Phone and i-Pod. It turns out that Steve Job's idea to convert to Intel CPU's solved any remaining concerns with the Macs. One last thought of concern...Isn't any form of pancreatic cancer fatal within a short period of time? Steve Jobs is Apple. Remember what happened to the company and its stock price when Jobs stepped aside for different management in the 90's? Any insights would be appreciated.Tom Malthus, 03.26.08:
Apple has been one of the great growth stories of the decade so far, and hopefully, it wll continue to be. As a long time subscriber I know how hard it can be to hold on to a stock that has doubled or tripled. Knowing that I have a source of advice on the stock that is tracking the fundamental story as well as the buying and selling pressure has made it easier to hold onto the big winners. I need to make money somewnere to pay for what my kids are spending on IPods and new mac Books!Carlo, 03.25.08:
Last December you ranked AAPL as Strong Buy at 200$ (Buy Below price was 208$). If I had followed your advice I would have lost 30%. AAPL at 200$ is absolutely overpriced. Period. Now at 140$ it may be interesting, but no more than many other companies.Maryanne Tackett, 03.25.08:
Great stock! I love AAPL. My daughter got me hooked on my iPod and now I can't live without it! Earnings next month should be great.
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