Gathering New Information about Stocks, Health, and Sports

          If you read my previous article a few weeks ago, you would understand the pessimistic feelings that I have for Microsoft shareholders. Granted, the stock is up 17% year to day but such an anomaly happens rarely, and if history provides a correct database in terms of trends, I see Microsoft going back a bit in the next few months.
         How does this relate to Apple (AAPL)? Well as a major competitor in terms of software and other accessories, Apple has seemed to gain considerable ground on the once monopolized company, as the branding of not only its IPODS but other products such as the IBOOK and ISHUFFLE have made Apple sore in terms of its stock value the last few years. Some investors may argue that Apple has had its fifteen minutes of fame with its famous MP3 player and especially now with the options and result filing controversies, it may not be favorable to purchase any shares at such a high price. Despite all the negativity in the background sending foreboding messages to pessimistic investors, Apple has only dropped relatively as it still remains only 10 points away from its all time high that was set earlier this year. In fact, since July when this controversy occurred, Apple has surprised investors by jumping 60% in about two months which is phenomenal for a large capitalization stock. Such technical analysis leads me to believe that Apple is destined to reach the 100 point mark in the immediate future, and regardless of what obstacles, no matter how serious such as the current delinquency problem, Apple will continue to rise even further, propelled by its incredibly recognizable products.
         With such products, whether they are favorable to consumers relative to their substitutes or not have created a tremendous impact in terms of fundamentals for this company. Supporting margins in terms of profit or revenue, Apple seems proponent to the notion that its margins have doubled year to year with strong intermediate gains during each quarter as well. A large part of why Apple did not fall even further when pressed for its controversial dilemmas this past summer can be easily attributed to its fantastic earnings, 23% above expectations. With Apple reporting earnings later this October, and with the arrival of the holiday season when these products will fly at enormous rates, there is no reason to believe that Apple will beat expectations once again, potentially reaching its all time high once more. Given the fact that Apple is a technological corporation and the technology sector tends to under perform during potential times of recession, you may be hesitant to purchase Apple. However, with the conspicuous consumption attire of consumers wanting to purchase an IPOD regardless of the overly inflated price, an economic downturn will not do as much damage to this company as originally thought. Especially with the news of a new IPOD and other products which will be readily available in the nearby future, Apple once again looks to propel to break new records in the coming months.
         Thus, with incredible fundamentals, a tremendous determination to grow and break new records, along with a conspicuous product base, there should be no reason to avoid such a bolstering company. Yes, you can argue about the filing regulation problems and other controversies, but to be honest, situations like these have close to little effect in the long run. Look at Hewlett-Packard or Brocade as examples where both are near 52 week highs. Therefore, if you want to make excellent gains in a large cap stock, which should be breaking its record any week now, jump into Apple before their earnings results this October and prepare to make a nice sum for you.

-Dennis Biray
September 29th, 2006