November 11, 2010

Happy Veterans Day!

I just want to take a moment to let all the soldiers and veterans out there know how much I appreciate you fighting for us and our way of life. The American dream wouldn't survive without you guys. 

November 10, 2010

Netflix Is Still A Buy

After the huge run that Netflix(NFLX) has had lately, this stock is still a buy. Some may be put-off by the steep price tag and wonder if the stock is overvalued. The stock is expected to make $3 a share this year which would put the stock trading at about 50 times earnings. While this is high, the company is expected to make $5.25 a share in 2012. Which would place the stock at around 30 times earnings. Plus when you consider the recent articles that show Netflix streaming is dominating internet traffic and their subscriber base has been growing every quarter.

Either way, if you have a Netflix account and have streamed movies instantly to your computer, you know why you have to own this stock. It has enormous growth potential and is loved by its customer base. What more could you ask for?

The author of this post owns no position in Netflix(NFLX) at the time of this post.

November 7, 2010

The Rebirth of Sirius(SIRI)?

     Satellite radio is making a comeback. After being down and counted as out for the past few years, Sirius has done a lot to stop this from happening. The company has stopped the fiscal losses and is expected to post a profit possibly even next quarter, the stock price has gone up over 140% in the past year, and the company is adding a significant amount of subscribers. The company's earnings call last week showed that the company added over 300,000 net subscribers which is 3X more than the previous quarter which helped to add to the companies record revenue since the merger with XM.

     As long as the company can continue to add more subscribers to its service, this company has the potential to be quite profitable in the coming years. The stock closed at $1.53 on friday after climbing most the week. I think the stock has the potential to hit $2.00 as long as the companies 4Q posts a profit and adds more subscribers than it did this quarter.

The author of this post owns no position in Sirius-XM(SIRI).

October 19, 2010

Apple Killed It's 4Q Earnings

     Apple(AAPL) blew past what anyone was expecting by about 60 cents per share. Apple sold more than 14 million iPhones, iPads are outpacing new Macs in sales, and they even admitted they could of probably sold more iPhones if they could produce them faster. What does this all mean? It basically means that Apple is a pretty safe investment in the tech industry. I personally feel that the stock will go up to $350 at least over the next year or sooner. While the stock is down in after hours due to Apple not being more aggressive in its forecasts, I don't see it as a big deal. Apple has always been a conservative company since Steve Jobs came back. They are not the type of company to over promise their coming quarters.

     I personally see Apple raising its guidance half way through the quarter. Their mobile devices are unstoppable and there are no rivals that are looking like they have the ability to take down Apples market share. Android might have more of the market now, however not all Android devices are the same. Many are running old software that can't run certain apps on the Android market. If you categorized iOS devices as a whole vs. Android, there is no comparison. iOS has the developers, the apps, and the customer satisfaction to withstand Androids sheer diversity among new smartphones.

     The pullback that is going on right now into tomorrow morning would be a good time to get in at a bit of a discount off of its high. Apple is going higher. Its has over 50 billion in cash, hot new products, and amazing growth potential. Its one of the safest tech stocks around.

The author of this article owned no shares of Apple (AAPL) at the time of this article.

October 18, 2010

A Good Book on How the Banking System Operates

We as investors can learn a lot from what happened back in 2008 from which we are still recovering from. One of the best and most comprehensive books I have read about the banking sector was a book called to Too Big to Fail by Andrew Sorkin. This book offers a behind the scenes look at what really happened between all the big investments banks when Lehman was on the verge of collapse.

A complete review for the book can be found here.

October 17, 2010

Apple Reports Earnings Tomorrow

     Tomorrow is a big day for the tech giant as it releases its quarter results tomorrow after the close on Monday. You can bet that they will easily pass the street expectations and announce that this quarter was their biggest quarter in the companies history with the success of the iPad, the iPhone, and strong Mac sales. I am sure that Apples stock (AAPL) will rise above $350 in the coming months if it doesn't from the earnings this month.

     Apple is a strong company that dominates the mobile computing market. the iPad has successfully created a new niche in the computing market with its tablet. Which for me has replaced my laptop as the computer I cary with me everywhere. While not as powerful as the standard laptop, the battery life and its substantial capabilities more than make-up up for its lower processing power. The amount of apps for all iOS devices grow by the day ensuring there will always be something new and creative for the foreseeable future. Analysts are predicting Apple will sell over 40 million iPads next year.

     iPhone Verizon rumors have always been running rampant pushing the stock price higher than it has ever gone. While I personally won't believe it till I see it, the evidence is mounting that Apple will allow the phone on the other big US carrier. What evidence? Well Verizon will soon being able to sell iPads out of its corporate stores, the increasing threat of Android as it overtakes Apples market share, and rumored Apple CDMA chip orders all point to an iPhone on Verizon.

     All in all, Monday will be an important day for the tech industry. For those with Apple stock, enjoy the new highs.

The author of this article holds no positions in Apple(AAPL).