Andy Zaky

How Stocks Perform After Being Added to the Dow

Ok. I cannot comprehend for the life of me why people think Google should be added to the dow rather than any of these other companies you've listed? In fact, none of those companies ought to be added because they're all high beta stocks. High beta stocks would keep volatility high in the index and thus drive away potential investors who see it as uncertainty in the market. But why Google in particular? Google is small beans compared to some of the other companies you mention. Apple is a far more viable candidate than Google as Apple's financial are far superior on nearly every front. See for yourself:

Apple
Cash: $28 Billion
2009 Expected Revenue: $35.4 Billion
2010 Expected Revenue: $40.9 Billion

Google
Cash: $17 Billion
2009 Expected Revenue: $16.79 Billion
2010 Expected Revenue: $19.07 Billion

As you can see. Google is small beans compared to Apple. To be a potential dow component, you've got to be reining in the revenue. Sales, beta and cash are the key metrices that determine whether a company is dow viable. And the key reason that revenue and net cash are central is because a company can always figure out a way to strengthen margins but its easy to produce $50 billion in sales. Cash is also key because it tells a story about the strength of the company's balance sheet. Apple does more in revenue, has a similar growth rate as google on net income, has more 50% more in net cash and is generally a larger company than Google. And both are high beta stocks. Google shouldn't be even mentioned at all.

Stocks Will Continue to Erode In This Busted Economy

Adding to my comment above, I could understand how this can be overlooked. Sites such as yahoo finance sometimes incorrectly state their variables. This can be result of lag time in updating the variables. Apple was trading at about 3.5 times their book value when they were trading closer to $110.00.

Stocks Will Continue to Erode In This Busted Economy

Just thought I would point out that your book value for Apple is incorrect. How can their "tangible book value" be 3.6 when Apple currently trades at only 3.007 times its cash position. Apple has 24.5 billion in cash, and no debt. Unless their real estate holdings have negative value, then your book value is understated. Apple is probably trading closer to 2.2 times its book value right now.

Smartphone Makers May Actually Strengthen Through the Recession

Nice commentary. Short and to the point.

Exploiting the Downside of the Markets

LOL. This article is late to the game man. The S&P500 is getting close to the previous bear market lows and the NASDAQ is approaches rock bottom prices that we haven't seen since the tech bubble collapse. The risk reward for shorting here is way off balance. There's maybe a case to short AMZN here with a P/E that is twice that of AAPL, GOOG and RIMM. But shorting AAPL and RIMM here is a dangerous game. GOOG might make for a good short as the market is laboring under the belief that on-line advertising has disappeared. How long this could be kept up is anyone's guess. GOOG and AMZN are maybe shorts if you're in for a very quick trade. But I wouldn't even think about shorting AAPL or RIMM. That's just stupid. AAPL has been steadily outperforming the market over the past few weeks and while the NASDAQ continues to make new lows, AAPL has yet to break its low set in the first week of October. RIMM has been on fire as of late. Shorting these stocks would have been advisable during the first week of October, but doing so now is a disaster waiting to happen. If history has taught us anything, bear markets end with inverted head and shoulders and when the market rebounds, it does it fast and furious.

Here's how the S&P, NASDAQ and DJIA bottomed in the 2001-2003 bear market:

stockcharts.com/h-sc/u...=$SPX&p=D&st=2...

stockcharts.com/h-sc/u...=$INDU&p=D&st=...

stockcharts.com/h-sc/u...=$COMPQ&p=D&st...

Notice how each of them ended their respective downtrends with an inverted head & shoulders. Also, the 74' bear market ended in the same manner. Inverted head and shoulders.

Now take a look at this bear market. I see a distincted left shoulder, and a head in progress.

stockcharts.com/h-sc/u...=$COMPQ&p=D&yr...

Shoulder at 1,542.45; head being made right now; and I imagine we see a massive rally in December as hedge funds try to cut their losses on the year. I could see the NASDAQ testing the neck line at 1700. Then sometime in January, I see the NASDAQ putting in a right shoulder. If the economic data starts look positive, this bear market will be over by March. And you want to short here? You're playing with fire.

Is Apple More Undervalued Than Other Tech Sector Stocks?

To Grouch:

Actually it will. That is current deferred revenue. Current in that it will be recognized within 1 of the date of the statement of deferred revenue. It will be recognized from September 28, 2008 to September 27, 2009.

Is Apple More Undervalued Than Other Tech Sector Stocks?

To Grouch:

Actually it will. That is current deferred revenue. Current in that it will be recognized within 1 of the date of the statement of deferred revenue. It will be recognized from September 28, 2008 to September 27, 2009.

Five Great Quality Companies: Are They Too Expensive?

Valuate is a term.

www.wordreference.com/...

www.yourdictionary.com...

www.merriam-webster.co...

You should do your research before condescending. And I'll call people out when they deserve to be called out. One's reasoned analysis should stand alone notwithstanding the brashness of its delivery.