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APPLE AND THE ASTUTE INVESTOR

February 25, 2012

Love is blind, and so are some Apple AAPL -0.08% investors. If the comments on my last article are an indication, some investors’ love for Apple is so strong that they have discarded time-tested investment principles. Lovesick investors probably cannot be helped, but astute investors may use this article as an opportunity to reflect on their Apple investment. I have been a mega-bull on Apple since the low 100s and have said before that it has the potential to go to $1000. However, being a mega-bull does not mean discarding some of the sound principles that are programmed into our adaptive algorithms. Adaptive algorithms

Apple Kicks Google Where It Hurts

February 22, 2012

I am always analyzing to see what the crowd got wrong. Figuring out early that the prevailing wisdom is wrong is one of the cornerstones of my investment methodology. Since I often write unpopular views, receiving hate email goes with the territory. Some of the emails in response to slide-to-unlock feature in mobile phones in the article Apple To Make Billions On Google’s Android were particularly vicious. ‘I am a patent attorney specializing in software utility patents. I have won a number of disputes over patents similar to slide to unlock. No court will ever uphold this patent. You f* idiot, you know

Making Money With Jeremy Lin’s Success Is A Garden Party

February 17, 2012

Nothing succeeds like success. The 23-year old New York Knicks point guard, Jeremy Lin, is a case in point. The Knicks’ winning streak has ignited a Lin mania. Vendors have been selling out of Lin merchandise. TV ratings have gone through the roof. To make money from Lin’s success, you do not need to sell T-shirts. Consider buying the stock of the Madison Square Garden Company (MSG). MSG owns not only Madison Square Garden but it also owns the Knicks and the National Hockey League’s New York Rangers. MSG was part of Cablevision (CVC), but has been operating as an

TAKING PROFITS ON GLD

February 16, 2012

Consider taking profits on GLD tranche from yesterday right here at $166.22. Still maintaining 25% of the full core position size as a short. In view of the fact that momo crowd sold gold on hard data showing that inflation is heating up, trading gold and silver have become treacherous. Core Producer Price Index rose 0.4% compared to consensus of 0.2%. As our long time subscribers know, we focus on leading indicators as opposed to coincident and lagging indicators. Core PPI is one of our important leading indicators to keep us on the right side of inflation. True to the

APPLE STOCK CAN EASILY FALL $100

February 15, 2012

Ever since I recommended buying Apple (AAPL) stock at $131, I have been a big Apple bull. Long before it was popular, I was writing that Apple stock can go to $1,000. My analysis leads me to believe that there is about a 25% probability of Apple stock falling by about $100 in the near term. Siri Novelty When iPhone 4S was introduced, Siri was a novelty. The novelty resulted in extraordinarily strong sales. Siri helped Apple dethrone Samsung (SSNGY) as the world’s largest smart phone maker. Samsung phones run on Google (GOOG) Android. Apple also passed LG which is

ADDING TO GLD

February 15, 2012

Adding a 5% tranche to GLD at $168.33. Stop on this tranche is $169.26.

Five Cloud Computing Takeover Stocks

February 13, 2012

In the world of information technology, the megatrend of cloud computing is in its infancy. Cloud computing entails providing software as service. Cloud computing stocks are very expensive, face stiff competition and are subject to rapid technological changes. However, these stocks are being taken over at a rapid clip. Oracle (ORCL) just announced that it will buy Taleo Corporation (TLEO). Taleo provides on-demand talent management software. The company is being bought by Oracle at Price/Sales(P/S) of about 6.3. Previously SAP (SAP) announced purchaseof SuccessFactors (SFSF) at P/S of about 11.5. Oracle and SAP are the two big software behemoths.

Going After Google, Apple Fires Shot To Android’s Heart

February 13, 2012

According to Walter Isaacson, Steve Jobs said, ‘œI will spend my last dying breath if I need to, and I will spend every penny of Apple‘s $40 billion in the bank, to right this wrong,’ It is old news that Apple (AAPL) has been fighting legal battles across the globe against Google (GOOG) Android vendors. (For background, please see Apple Wins Another Round Against Samsung Galaxy In Germany.) Now for the first time, Apple has fired at the heart of Google Android with its new lawsuit against Samsung filed in federal court in San Jose, Calif. It is the