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Tuesday, July 19, 2011

some thoughts... AAPL, IBM

AAPL - Intraday activity most likely suggests the big boys are questioning whether Apple can meet the whisper numbers of $26.5B in revenue and $7.09eps. (These are some pretty sizable whisper numbers.) IMO, potential weakness is short-sighted, as any number higher then the current (normal) consensus will pin AAPL at a very favorable valuation.  So even if it does sell off after they report, I will be a buyer. I will not wait for dust to settle, I will just be a buyer because valuation is still very very attractive (despite its move) and the one division where growth is a concern for investors has an $80B opportunity in China Mobile and China Telcom alone.

IBM - Its seeing a well deserved appreciation from the street. I will not be a chaser, and will be patient. I have been in this stock, one-way-or-another, since it was in the low 120s to the low 170s. There will always be an opportunity to re-enter this name. (IMO, the only way it keeps rising, from its current appreciation, is if the street rewards it with an immediate and sizable multiple expansion.)


  1. wow! they crushed the whisper numbers. wow.

  2. $400 still cheap