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Apple: iPhone Subsidies Are Not The Issue
I'm also an iPhone user, and I'm extremely happy with my phone, however, you shouldn't forget that it's a luxury product (at least in Europe) and by definition, it's an object reserved to some "happy few". Personally, I've paid 650 euros for it, since in Belgium, like in many small countries of Europe, phone companies don't offer special prices on cellphones with a contract, as the market isn't big enough to be profitable with that policy. So, how many people could afford a cellphone for almost $1k? Not as much as people who could afford buying a 100 euro Nokia!
As someone told me, don't mix sex with love, it isn't because you sleep with a woman that you have to merry her! Same thing with Apple... At this point, AAPL shares aren't the best investment on the market and let me explain you why.
Apple worth $608 a share and as you've probably seen, the stock has been bouncing for a couple of weeks now, as people aren't "so" sure that the stock has still a lot of potential for growth. On the other hand we've got Nokia, that worth $4/share, and just a week ago it cost $5/share. Since Nokia is the market leader, with a large scale of products and an extremely wide price range, I would say that there are more then 50% of chances that the stock will bounce back to at least its initial price of 5 bucks in a week, which already represents a return of 25% on the investment. What are the odds that Apple will take 25% in 7 days (which is $152)? I guess less then 1% of chances!
Today, you could have bought exactly 152 stocks of NOK, for only one stock of AAPL. However, you need a huge, massive, extraordinary piece of news to make move a mammoth like Apple by $152, while Nokia is a such a beaten stock, that with a tiny illusion of bettering it will certainly go up by just what you need to make some extra cash very quickly....
I don't "believe" in Nokia, but I'm sure that it's an excellent opportunity for a short term investment, and I don't see a better stock that could bring with such a high probabilities, such a big return in such a short period of time, while the risk for your investment is close to zero, since the company is still making billions, it has Microsoft watching its back and there is no apparent reason for it to bankrupt.
Apr 18 07:20 PM
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