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WAL-MART SENDS IPHONE 5 DOWNMARKET WITH $45 PLAN $WMT $AAPL $RIMM $GOOG $MSFT $NOK

January 9, 2013

The brilliance of Steve Jobs at Apple (AAPL) has been embodied in a carefully cultivated image for Apple products. Jobs created elegant products that appear to be meant for the elite but were sold to the masses. When the masses bought Apple products, they felt good because they were buying what the rich were buying. When masses used Apple products, their experience was head and shoulders above competing products; the masses quickly learned what the rich were used to. In countries like China, displaying an iPhone quickly became a badge of ‘I have made it’. The genius of Steve Jobs was creating an image that

DISH TO BATTLE SPRINT FOR CLEARWIRE’S POT OF GOLD $CLWR $DISH $S $INTC $DTV

January 9, 2013

Today after the market close, Dish Network (DISH) announced a $3.30 offer for Clearwire, $0.33 more than the Sprint offer. Sprint called the offer from Dish illusory. Dish has been accumulating spectrum. Last month Dish won a ruling to convert some satellite spectrum to be used as cell phone spectrum. Both Dish and its competitor Direct TV (DTV) have been attempting to diversify. Clearwire (CLWR) is a true pot of gold because of the valuable spectrum it owns. As wireless devices continue to proliferate, radio spectrum becomes more valuable. The sad truth is that we cannot make new spectrum; we

TAKE PROFITS ON DISCOVER $DFS

January 8, 2013

Consider taking profits and exiting DFS in the zone of $40 – 40.60. The last on DFS is $40.08. Our positive thesis on the stock has not changed, the exit is due to our models perceiving higher risk in the financial sector than we like. The plan is to buy DFS again, hopefully at a lower price. The signal to buy again will be posted on the real time feed of ZYX Buy Change Alert.

NEW IDEA ON SPRINT $S $CLWR $DISH

January 8, 2013

This post was just published on ZYX Short Sell Change Alert. Consider short selling a 25% tranche in Sprint (S ) right here in the zone of $5.89 to $5.97. Sprint has a pending offer to buy CLWR. Know DISH has stepped up and offered $3.30 per share for CLWR. Considering that Sprint (S ) owns the controlling interest in CLWR, it is not clear if Sprint will have any interest in raising its bid or will CLWR be ultimately sold for more than Sprint’s bid? If a bidding war breaks out, Sprint stock may go down. Stop zone is $6.31

NEW IDEA ON BA FROM FIRES ON DREAMLINER PLANES $BA

January 8, 2013

These post were just published on ZYX Buy Change Alert. Consider starting a 10% tranche on BA right here in the zone of $73. to $73.40. This is a short-term trade for aggressive investors only. BA stock has had a couple of dreadful days. The reasons are the fires on its Dreamliner 787. The preliminary indications are that the fires are related to auxiliary batteries. If there are no more issues than this issue should be easily fixable. It is common for a new plane to go through teething problems. Historically any down drafts on minor issues have proven to be

CONSUMER REPORTS NO KNEE-JERK APPLE HATER, LOVED IPHONE 5 WHEN IT CAME OUT $AAPL $MSFT $GOOG $RIMM $NOK

January 8, 2013

In response to my column yesterday,Consumer Reports Is No Fan Of iPhone 5, I received a large number of comments. Two contentions in these communications are worth addressing. A large number of readers contend that Consumer Reports is biased against Apple. Some also contend that Steve Jobs rubbed Consumer Reports the wrong way. I know nothing about Jobs instigating anything with Consumer Reports,but there is proof that Consumer Reports is not biased against Apple. Proof positive lies in Consumer Reports‘ glowing review of iPhone 5 when it was launched. The tag line of the review was ‘Another winning smart phone from Apple, based on our initial review.’ Here is

CONSUMER REPORTS IS NO FAN OF iPHONE 5 $AAPL $MSFT $GOOG $NOK $VZ $S $T

January 7, 2013

Over the last several months, I have been arguing the case that the long-term risks in Apple stock are rising. I have advanced two main arguments. First, competitors have caught up with Apple for all practical purposes. Second, Apple is failing to innovate at the rate it was innovating in the past. Every time I write about competitors catching up with Apple I get a lot of pushback. In some instances, I have received more than 100 emails after publishing an article, mostly disagreeing with my proposition. Now a respected reviewer agrees with me. Consumer Reports rates Apple’s iPhone 5 the worst among the

TAXES CANNOT EXPLAIN APPLE’S BIG SELLOFF $AAPL

January 7, 2013

The big bullish argument on Apple in the fourth quarter of 2012 was that the near $200 drop from its high in the stock price was primarily due to tax-motivated selling. The bulls contended that fundamentals were intact. Now this big bullish argument has proven false as trading in 2013 has unfolded. Much of the Wall Street is like a herd of sheep; once something catches on everyone jumps on the band wagon. In its December 29, 2012 issue,Barron’s published an article titled ‘The Reverse January Effect.’ Barron’s asked a question, “Did Apple sell off because investors were taking gains in advance of the tax