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Tuesday, January 18, 2011

Market Thought... kick ass, but still protected

Earnings are developing to be, simply put, kick ass. With that said, I am still protected as indicated from the previous post. Seeing how things are playing out, we may see a market consolidation after the brunt of earnings are announced.

There is really nothing more that can be said about AAPL. The quarter was impressive, and is a flavor of more to come with its current product cycle.

I took a look at the revenue growth seen from 3rd q-to4rth q. Here is the break down:

Services +6.38%
Software +34.6%
Hardware +46.5%

(That is with an increase in margins from 45.3% to 49%.)

Uhmmm, yeah, if the numbers mean anything, IBM will see multiple expansion sooner. I am not selling my current position in IBM until 165. (I get that from my 'forward PE' assessment. See link at the top right of the blog.)

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