Rare Miss For Apple As IPhone Sales Cool-WSJ - Tim Travis

Send Message

Tim Travis is a veteran deep value investor and money manager. Travis has extensive experience in traditional investments such as stocks and bonds, in addition to having a unique methodology of combining options and distressed investing with value investing to generate income, reduce risk, and... More

My company:: T&T Capital Management
My blog:: T&T Capital Management Blog
My book:: Learn to Treat Your Portfolio as a Business

Rare Miss For Apple As IPhone Sales Cool-WSJ 0 comments

Jul 25, 2012 12:07 PM | about stocks: AAPL

Apple (AAPL) reported disappointing earnings yesterday primarily due to lower iPhone sales than what were expected. This really wasn't that much of a surprise as many iPhone lovers are waiting for the next model. iPad sales numbers were extremely encouraging and it is amazing to see a company become so overwhelmingly dominant, on so many different consumer products, in such a short amount of time. While the business and valuation based on current earnings looks great, the question of sustainable earnings power in such a fickle industry should not be overlooked. I'm neither bullish or bearish at current levels and I believe the best way to play the stock would be selling puts that are way out of the money. It is hard to see a precipitous decline in Apple, but a couple of years ago Blackberry was looking quite strong. Apple is far more financially strong and diversified than RIMM but they are doing things that no company has been able to do so there really is nobody to compare them to.
http://online.wsj.com/article/SB10000872396390444025204577547361858270658.html?mod=business_newsreel
Disclosure: I am long AAPL.

Stocks: AAPL

Back To Tim Travis' Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.