Apple Computer, ticker sysmbol AAPL could be one of the most fun stocks to own for the next 3-4 years. There are so many moving parts to the story and they are all moving in the right direction. The stock is at $73.81 and my price target is $105 within 12 months.
Apple had a strong September sales month at their 150 retail stores as consumers were buying products for the back to school season. The beauty of Apple’s retail store strategy is they control the customer from A to Z. You buy your iMac, or your iPod, and Apple is there ready to sell you every peripheral and maintenance agreements. Apple heavily promotes the iTunes on-line store to fill that iPod with your favorite songs.
Apple will introduce sometime in the first half of 2007, the iPod with a cell phone feature. With an installed base of over 50 million units sold, Apple will become an instant major player in the cell phone market. Also, Apple will offer iTunes in a wireless fashion, increasing its own market penetration. Most analyst earneings and revenue models for 2007 do not contain any updates from these two potential powerful revenue sources.
Apple Computer’s traditional customer base is the student, artistic and graphic designer/sound engineering markets. Apple is making inroads into the business/enterprise sector where they are competing with powerhouses Dell, Compaq and IBM. With the new iMac’s sleek new look and features, any gains in the enterprise market will be pure gravy.
Apple is experiencing strong demand for the notebooks and of course, the iPod. Christmas selling season will be robust and Apple has not experienced any component shortages, so their stores and on-line sales will be well stocked.
The 2006 revenue and earnings per share expectations are $19.1 billion of revenues and earnings of $2.12 per share. Calendar year 2008 expectatios are conservatively set at revenues of $23.6 billion and earnings of $2.70-2.75 per share. Tremendous and sustainable growth. As I said, gold to the core.For more information about Apple Computer and many other great growth names, please go to www.stoplosingmoneytoday.com.
Georges J. Yared Professional since 1979
Dean Witter 13 years, from broker to branch office manager to Regional manager to President and CEO DWR Canada 14 years, partner, investment banking-research boutiques: Wessels, Arnold and Henderson to ThinkEquity Partners Have advised directly over 1,000 individual investors, have supervised over 1,200 brokers in Midwest region, have met and discussed with over 5,000 individual investors Have worked very closely with over 150 research analysts and over 100 professional portfolio managers Have worked with, traveled and advised over 200 publicly traded companies,i.e. Cisco Systems, Medtronic, Costco, VeriSign, etc Author of: "Stop Losing Money Today…the Art and the Science of Investing" "Stop Losing Money Today…Investor Workbook" "Baby Boomer Investing…Where do We Go From Here" coming in November!!! For more information please go to http://www.stoplosingmoneytoday.com
