What the heck is going on with Apple Inc. (NASDAQ/AAPL)? The stock has corrected 26% since trading at a record high of $705.00 on September 21, and based on my stock analysis, Apple has made a chart reversal in a bear market.
While the price chart shows two major downward moves, don’t panic yet, but be careful.
I still consider Apple one of the best stocks in technology, but the company is clearly facing increased competition in the lucrative tablet, mini-tablet, and smartphone markets. The stock was recently downgraded, but sales in China are encouraging after Apple launched its “iPhone 5” and saw over two million units sold from December 14–17. (Source: “iPhone 5 First Weekend Sales in China Top Two Million,” Yahoo! Finance via Business Wire, December 16, 2012.) The iPhone 5 will be sold in over 100 countries by year-end.
Its valuation is attractive at 9.04X its estimated fiscal 2014 earnings per share (EPS) consensus estimate of $57.83 per diluted share, according to Thomson Financial. Its price/earnings-to-growth (PEG) ratio of 0.5 is bargain-cheap, based on my stock analysis.
The chart is bearish, showing the stock’s recent break below the 50-day moving average (MA) of $578.67 and the move below the 200-day MA of $597.41, which represents a bearish “death cross,” based on my technical analysis.
Chart courtesy of www.StockCharts.com
My stock analysis is that there are clearly some concerns that Apple may not be able to continue on its merry way. Chief rival Samsung sold a staggering 97 million mobile phones in the third quarter, well above the 23 million iPhones sold by Apple, according to Gartner. (Source: … Read More
I’m tired of reading and talking about the so-called “fiscal cliff,” but it could spell dire consequences for the economy if it is allowed to go through (and even if not). The reality is that America needs to stop printing money with no regard for the massive national debt load. Allowing the debt to continue to rise will punish the country’s future generations.
If we assume that the global economy will weaken, especially in the eurozone, the impact on global gross domestic product (GDP) growth would be negative. Stock values would fall, so you would need a safe haven to park your capital, which many of you know is in gold.
There’s been plenty of talk around here regarding gold and whether the precious metal is heading for $2,000. In my view, the current global risk will support and drive gold higher.
For any gold investor, the question is whether to buy the physical bullion or gold mining stocks. For the average investor, I favor gold stocks over the higher risk of other options.
The mining sector continues to be an excellent place to make money. An investment strategy would be to buy a mixture of exploration-stage gold mining stocks along with small to large gold producers. Under this scenario, you can play both the potential aggressive gains of exploration stocks and the steady returns of the large gold producers.
For exchange-traded fund (ETF) investors, the SPDR Gold Trust ETF (GLD) is worth a look and is currently trading in a sideways channel above the 50- and 200-day moving averages (MAs).
Chart courtesy of www.StockCharts.com
If you are looking at … Read More
Chipotle Mexican Grill, Inc. (NYSE/CMG) is one of my favorite places to grab a quick bite to eat. Yet, despite some stellar growth, the stock broke below $300.00 on Wednesday and has been steadily losing ground since trading at a 52-week high of $442.40 in April. Mounting concerns regarding future growth and multiple downgrades from analysts have hurt the stock. Hedge fund manager David Einhorn hammered another nail into the coffin when he said that Chipotle’s valuation “doesn’t make sense.”
With Chipotle Mexican trading at 28X 2013 earnings and with a price/earnings-to-growth (PEG) ratio of 1.7, my stock analysis is that the current valuation looks somewhat top-heavy.
According to my stock analysis, there are strong showings in the restaurant sector, especially in the fast-food area. A staggering 30% of the 96,000 new jobs generated in August were driven by the food-services sector, according to data from the U.S. Department of Labor.
The Bloomberg U.S. Quick Service Restaurant Index, which includes Yum! Brands, Inc. (NYSE/YUM) and McDonalds Corporation (NYSE/MCD), is up over 22% for the year to October 3.
Whether it’s eating out or cooking at home, the investment opportunity for food-related stocks is excellent, especially with the fast-food stocks, based on my stock analysis.
At the top of the fast-food chain, according to my stock analysis, is McDonalds, with over 33,000 restaurants in 119 countries, including sizzling growth in China. It plans to have 2,000 restaurants in place in China by 2013. Based on my stock analysis, McDonalds has been a top performer in the restaurant sector over the past decade after making a dramatic shift in its menu to … Read More
Israel is not widely known as a hotbed for start-ups, but this dynamic country of 7.9 million people situated on the Mediterranean Sea is just that. The country has the second highest number of start-up companies in the world, trailing only the U.S. There are over 120 Israeli companies listed on U.S. exchanges, including about 60 on the NASDAQ, which makes Israel second only to China on this index. However, a major difference is that Israeli stocks are more trustworthy than Chinese stocks, based on my stock analysis.
My stock analysis is that one of the top Israeli and best stocks listed in the U.S. equities market is pharmaceutical giant Teva Pharmaceutical Industries Limited (NASDAQ/TEVA; NYSE/TEVA), a developer of generic and branded drugs and active pharmaceutical ingredients.
Technology and healthcare are some of the leading industries in Israel, based on my stock analysis. My stock analysis shows that the country has seen a steady rise in technology companies that have performed well on the world stage.
I will mention a few that are good examples, but again, these stocks are not meant as specific investment advice and are more for information purposes, based on my stock analysis.
A small-cap technology stock that has excellent long-term potential for above-average price appreciation is Petach-Tikva, Israel–based ClickSoftware Technologies Ltd. (NASDAQ/CKSW), according to my stock analysis.
Founded in 1979, ClickSoftware creates solutions that allow companies to manage resources efficiently and effectively. The company develops and sells workforce management and service optimization solutions that allow companies to improve productivity, customer satisfaction, and cost effectiveness. Its offices are in Israel, the U.S., Europe, and Asia.
Chart … Read More
Facebook, Inc. (NASDAQ/FB) traded at another new low of $17.55 on Tuesday, down a whopping 61% from its initial public offering (IPO) high of $45.00 on May 18. Initial investors are selling their shares as the lock-up periods come up; until this ends, the stock will continue to face selling pressure. Conversely, Amazon.com, Inc. (NASDAQ/AMZN) and Google Inc. (NASDAQ/GOOG) both recently traded at record highs in the equities market.
So while the aforementioned stocks are all Internet-based, the difference is that Amazon.com and Google have managed to successfully monetize their massive user base, while Facebook has yet to figure out how to make money from its over 900 million users.
The trajectory of Apple Inc. (NASDAQ/AAPL) helps dictate the movement of the NASDAQ in the equities market. When Apple lost seven percent in five sessions from April 10 to below $600.00 on April 16, the NASDAQ lost some ground and breached support at 3,000. As Apple rallied towards its 52-week high of $680.87 on August 27, the NASDAQ touched a new 52-week high.
Technology, growth, and small-cap stocks led the way in August, with the NASDAQ and Russell 2000 advancing 4.3% and 3.3%, respectively. Technology is leading the broader market with a 17.7% advance to date in 2012, well ahead of the 11.8% of the S&P 500.
And as we move forward, I continue to feel that the top growth areas to make money in the equities market will still be in technology.
I believe the areas that will offer opportunity for the best stocks in the equities market are mobility applications for tablets and smartphones, as users shift away … Read More