Apple's stock jumps more than $5 today!

[luvya]

Yeah, of all the stocks I have in my portfolio (fake, not real money) Apple seems to be the most volatile of them all. It jumps more than $5 alone today, and I am wondering what the heck is going on? I know the news about the new "mini" retail store but that can't possibly translate into $5 jump in one day, can it?

 

[mpitts]

/me waits for Apple-bashers to correlate the stock price increase to Apple's prices.

 

[KEV1N]

They posted their earnings today.. I forget the exact number but a profit's a profit.

 

[UTmtnbiker]

I've been an owner of Apple shares for about 3 years now (bought in around $17). Even though I'm not an Apple user, you could see the writing on the wall with their innovative designs, their fanatical user base, it was only a matter of time they would design something that would be a commercial hit (iPod). Of course, you can't rely on one product to keep a company afloat (ahem, Iomega), but if they can parlay this into a profitable and successful line - which they have up until this point (Mini, Itunes) - they can probalby milk profits for quite a bit longer.

Not to mention, looking at Apple's balance sheet, statement of income, statement of retained earnings, and cash flow, they look very, very strong right now.

 

[puffff]

Originally posted by: UTmtnbiker
I've been an owner of Apple shares for about 3 years now (bought in around $17). Even though I'm not an Apple user, you could see the writing on the wall with their innovative designs, their fanatical user base, it was only a matter of time they would design something that would be a commercial hit (iPod). Of course, you can't rely on one product to keep a company afloat (ahem, Iomega), but if they can parlay this into a profitable and successful line - which they have up until this point (Mini, Itunes) - they can probalby milk profits for quite a bit longer.

Not to mention, looking at Apple's balance sheet, statement of income, statement of retained earnings, and cash flow, they look very, very strong right now.

not trying to be an apple basher here, but fool.com had an interesting article about apple earlier this week.

numbers may not be as good as the seem

i've been tempted to buy apple stock myself, but i've really been turned off by the high P/E and forward P/E

 

[UTmtnbiker]

Just read that article. It was a somewhat interesting read (I generally have a very low opinion of fool.com), but they're not alleging that Apple is cooking the books. Basically that author is implying that 1)Ipod sales are the only thing keeping Apple's numbers up (I agree there) and 2)the valuation of Apple is very high (I agree there also). From a pure investment standpoint, right now I wouldn't advise anybody to buy AAPL. However, as far as from a financial position, AAPL right now is very strong. They have a lot of cash and cash equivalents on the books, a growing working capital. Absolutely no long term debt (as of the 2003 annual report - I haven't looked at the 10Q they just filed, but I pulled it up). Overall, they're a very healthy company at this point.

I'm no AAPL evangelist. Just somebody who has invested in the company who's pleased with the way it's been going this last year. If I saw some bad news on the horizon I definately would consider selling. Right now, I just don't see anybody (despite what MANY people on this board would say) competing with the iPod. It still owns the MP3 market. If nothing else, it's become synonymous with Mp3 player. And not to mention, AAPL is selling style with the iPod. There are better sounding and better priced players on the market but the iPod is it. You want people to see you with your iPod.

EDIT FOR SPELLING

Originally posted by: puffff

Originally posted by: UTmtnbiker
I've been an owner of Apple shares for about 3 years now (bought in around $17). Even though I'm not an Apple user, you could see the writing on the wall with their innovative designs, their fanatical user base, it was only a matter of time they would design something that would be a commercial hit (iPod). Of course, you can't rely on one product to keep a company afloat (ahem, Iomega), but if they can parlay this into a profitable and successful line - which they have up until this point (Mini, Itunes) - they can probalby milk profits for quite a bit longer.

Not to mention, looking at Apple's balance sheet, statement of income, statement of retained earnings, and cash flow, they look very, very strong right now.

not trying to be an apple basher here, but fool.com had an interesting article about apple earlier this week.

numbers may not be as good as the seem

i've been tempted to buy apple stock myself, but i've really been turned off by the high P/E and forward P/E

 

[0roo0roo]

something like 2 million ipods.

would be more but hd supply limits

 

[jhu]

Originally posted by: luvya
Yeah, of all the stocks I have in my portfolio (fake, not real money) Apple seems to be the most volatile of them all. It jumps more than $5 alone today, and I am wondering what the heck is going on? I know the news about the new "mini" retail store but that can't possibly translate into $5 jump in one day, can it?

the same reason ebay and yahoo are worth so much.

 

[Wahsapa]

they posted earnings that are 2 times as much as last years in this quarters :thumbsup: thats the $5 jump

 

[UTmtnbiker]

Just took a quick look at their 8-K (looks like the 10Q hasn't been filed yet). Some things that jumped out at me:

1) Assets rose by ~1.2bil Y-T-Y while liabilites only rose by ~200mil.
2) Still no long term debt
3) Net income rose by ~2bil while costs of good sold only rose ~1.6bil Y-T-Y and ~600mil vs. 450mil for the quarter - shows they are controlling costs while increasing sales (could be economies of scale seriously kicking in or they are serious about keeping their costs down)
4) Ipods are now their #1 revenue generator. For Q4 Ipods brought in 537mil. Next closest was Powerbooks @ 419mil. This is something to watch out for. As the Ipod goes right now, so goes AAPL.