By Kevin Spak
Remember when reports started trickling in about Wall Street bankers’ love of Snapchat , the photo-sharing service that lets you send self-destructing messages? Well, it looks like we’re not the only ones who suspect they’re using them for more than sexting and off-color jokes. Jim Cramer sat down with US Attorney… …read more
Source: FULL ARTICLE at Newser – Home
By Adam Levine-Weinberg, The Motley Fool
Filed under: Investing
The slide in Apple’s stock price from more than $700 in September to less than $400 earlier this month was almost entirely brought on by fears that its growth was stalling out. Apple previously seemed to be rewriting the rules of the stock market as a high-growth large-cap stock. Apple’s string of successful products (iPod, iPhone, and iPad) encouraged investors to expect its high growth rate to continue indefinitely.
Apple TTM Revenue; data by YCharts
Since September, Apple has given growth investors a big dose of reality, as the growth trajectory has flattened out. While revenue was still growing in the first half of FY13, the growth rate was a modest 15% (that figure slightly understates Apple’s growth because Apple’s Q1 had an extra week last year). Moreover, Apple is not projecting any revenue growth for the current quarter.
Understandably, growth investors are now running away from Apple stock. However, that is not necessarily a bad thing, because Apple has reached the point where it is really a value stock more than a growth stock. CEO Tim Cook seems to have finally admitted that this is the case, and the new capital allocation plan announced this week solidifies Apple’s “value stock” credentials. As Apple accumulates a base of value investors who are less concerned with short-term growth rates, I expect the stock to recover and continue providing strong shareholder returns.
The value shift
On Apple’s conference call last Tuesday, Tim Cook stated, “[W]e acknowledge that our growth rate has slowed and our margins have decreased from the exceptionally high level we experienced in 2012.” Apple’s gross margin has returned to the high 30% range: much higher than competitors, but significantly lower than its 2012 level. Combining that with slower revenue growth, Apple reported its first year-over-year profit decline in a decade on Tuesday.
While some pundits like Jim Cramer have decried Apple’s lack of growth, Apple management is clearly trying to change the conversation to value. By allocating an additional $50 billion to share buybacks between now and the end of 2015, Apple’s leadership team made a clear statement that they believe the stock is undervalued. Buying back stock will reduce Apple’s share count, entitling remaining shareholders to a larger piece of Apple’s earnings.
Of course, this would not be much consolation if Apple’s earnings continue to shrink. However, value stocks can still produce earnings growth; they’re just not expected to grow at a double-digit rate for an extended period of time. For Apple, new product categories, new iPhone carrier partners, and a cheaper iPhone are all potential revenue growth drivers. These opportunities won’t be able to return Apple to the 50% growth rates investors enjoyed in much of 2011 and 2012, but they should catalyze more modest earnings growth. Modest growth and a generous cash allocation strategy — typical of value stocks — could make Apple a great stock for long-term investors at its recent price around
Source: FULL ARTICLE at DailyFinance
By Brian Pacampara, The Motley Fool
Filed under: Investing
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool’s free investing community, apparel and home-fashions retailer TJX has earned a respected four-star ranking.
With that in mind, let’s take a closer look at TJX and see what CAPS investors are saying about the stock right now.
TJX facts
|
Headquarters (Founded) |
Framingham, Mass. (1956) |
|
Market Cap |
$34.5 billion |
|
Industry |
Apparel retail |
|
Trailing-12-Month Revenue |
$25.9 billion |
|
Management |
CEO Carol Meyrowitz (since 2007) |
|
Return on Equity (Average, Past 3 Years) |
49.2% |
|
Cash/Debt |
$2.1 billion / $774.6 million |
|
Dividend Yield |
1.2% |
|
Competitors |
J.C. Penney |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 90% of the 644 members who have rated TJX believe the stock will outperform the S&P 500 going forward.
Just yesterday, one of those Fools, NoblyNaive, succinctly summed up the TJX bull case for our community:
Stock is lagging sector (due for a pop). OK P/E. Good CAPS rating. Highly touted by [Jim Cramer ] on April 9, 2013.
Cramer also pointed out: 1) cool weather has put a damper on spending in the last month. 2) [J.C. Penney] has been losing market share, and the winners are the other well positioned retailers, of which TJX is one. Warmer weather, plus the implosion of [J.C. Penney] should give a bump to the sector.
If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a strong four-star rating, TJX may not be your top choice.
We’ve found another stock we are incredibly excited about — excited enough to dub it “The Motley Fool’s Top Stock for 2013.” We have compiled a special free report for investors to uncover this stock today. The report is 100% free, but it won’t be here forever, so click here to access it now.
Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.
The article Why TJX Is Poised to Keep Popping originally appeared on Fool.com.
Fool contributor Brian Pacampara and The Motley Fool have no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don’t all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.
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Source: FULL ARTICLE at DailyFinance
By Tim Beyers, The Motley Fool
Filed under: Investing
Recently, CNBC commentator Jim Cramer took to the air to declare that stock splits matter, and that, in particular, salesforce.com‘s plan to split 4-for-1 could send the shares higher.
He’s wrong, says Tim Beyers of Motley Fool Rule Breakers and Motley Fool Supernova in the following video. The Salesforce stock split will only help those who don’t fully understand the value of the underlying business. Management, meanwhile, says it wants to split Salesforce stock in order to increase liquidity for issuing equity options to employees (which it already does, in bulk).
As it stands, Salesforce’s stock will officially split on April 18. Do you see the stock moving higher in the months following? Why or why not? Please watch Tim’s take, and then leave a comment to let us know what you think of Salesforce’s business prospects.
It’s incredible to think just how much of our digital and technological lives are almost entirely shaped and molded by just a handful of companies. Find out “Who Will Win the War Between the 5 Biggest Tech Stocks?” in The Motley Fool‘s latest free report, which details the knock-down, drag-out battle being waged by the five kings of tech. Click here to keep reading.
The article Cramer Is Wrong: The salesforce.com Stock Split Is Meaningless originally appeared on Fool.com.
Fool contributor Tim Beyers is a member of the
Motley Fool Rule Breakers
stock-picking team and the Motley Fool Supernova Odyssey I mission. He owned shares of Salesforce.com at the time of publication. Check out Tim’s web home and portfolio holdings or connect with him on Google+, Tumblr, or Twitter, where he goes by @milehighfool. You can also get his insights delivered directly to your RSS reader.Motley Fool newsletter services have recommended buying shares of Salesforce.com. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.
Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.
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…read more
Source: FULL ARTICLE at DailyFinance
By Darcy Travlos, Contributor Tuesday, Jim Cramer bashed Apple’s upcoming product introduction in September. Although he did not know what it was, he was certain it would be a “loser.” His commentary was on the heels of Goldman Sachs removal of Apple from their Conviction List. On both counts, Apple should have been under pressure particularly given the amount of media attention given to the events, but interestingly, the stock ended up on the day. What gives? …read more
Source: FULL ARTICLE at Forbes Latest
By Adam Levine-Weinberg, The Motley Fool
Filed under: Investing
After finishing 2012 with a strong December, airline stocks went on a tear in the first quarter of 2013. Of the five largest U.S. carriers (excluding American Airlines, which is in bankruptcy), the worst performer was JetBlue , which still gained a solid 17% for the quarter, outperforming the S&P 500 by nearly 10%.
Airline Q1 2013 Stock Performance vs. S&P 500, data by YCharts
However, in the past week, airline stocks have been buffeted by one piece of bad news after another. In just three days, a number of airline stocks have lost 10% or more of their value.
Airline 1 Week Stock Performance vs. S&P 500, data by YCharts
This quick reversal implies that we have probably reached the end of the airline rally. However, that does not mean that long-term investors should necessarily avoid the sector altogether. If you pick your spots carefully, you should still be able to earn some nice returns in airline stocks.
The rally
Last quarter’s massive airline rally was primarily driven by speculation about a potential merger between American Airlines and US Airways , followed by enthusiasm about the potential benefits for the industry, after the merger agreement was announced. Moderating oil prices also helped give airline stocks a boost. It seemed to me that the merger’s potential benefits were already priced in by the time the agreement was announced in mid-February, but investors continued to push airline stocks higher. Most notably, Jim Cramer came out as bullish on US Airways in early March, reversing a long-held aversion to airline stocks.
The main rationale for buying airline stocks based on the American-US Airways merger was the idea that consolidation would lead to capacity discipline, boosting pricing power. Continued unit revenue gains at the major airlines in January and February added to this hope. However, consolidation is not particularly new for the airline industry. In the past five years, Delta Air Lines merged with Northwest, United and Continental merged to form United Continental , and Southwest Airlines purchased AirTran. Most of the benefits of tamer — not to mention saner — competition have already been achieved.
The reality check
In the past week, airline investors have faced a major reality check. First, United Continental published an investor update before the long weekend in which it announced that non-fuel unit costs would increase by 11.4%-12.4% in the first quarter, far worse than its original projection of an 8%-9% increase. As a result, various analysts cut their Q1 estimates for United, anticipating an even larger loss than previously expected. Nevertheless, analysts were encouraged to see that United expects unit revenue to increase 5.4%-6.4% for the full quarter (implying a gain of roughly 7% in March).
However, if United’s report led investors to believe that the revenue environment is strong, Delta and US Airways proceeded to dump cold water on that notion. On Tuesday, Delta reported unit revenue growth of …read more
Source: FULL ARTICLE at DailyFinance
By Rick Munarriz, The Motley Fool
Filed under: Investing
Netflix would apparently look good on the arm of Apple or Microsoft .
Jim Cramer played up the video service as a potential acquisition target on CNBC’s Mad Money show on Monday night.
However, instead of going the more common Amazon.com route, Cramer only singled out Apple and Microsoft as logical buyers.
Tying the knot with Netflix
Apple, according to Cramer, “needs a mobile content offering as well as something proprietary to run on Apple TV.”
He also suggests that Apple needs to make a meaty acquisition to wake up its freefalling shares: “How do we reverse that? Netflix!”
Cramer also argues that Microsoft should bid $13 billion for Netflix, a 30% premium to where it is now.
“Don’t rule it out,” he argues. “Why should this monster stay independent with its 27 million subscribers and Steve Ballmer desperate to leave a legacy?”
Both possibilities make sense, but they seem flawed after thinking them through.
Apple is being widely criticized for stashing $137 billion in cash as growth prospects peel away. The theory that the iEverything titan needs something proprietary for Apple TV isn’t necessarily a good reason to buy Netflix. If the plan is to tie Netflix only to Apple TV owners, it would be merely keeping a Ferrari in the garage. Netflix’s global appeal is easy accessibility, and that means not tethering it to any particular platform. Anything that would limit Netflix’s subscriber count would also limit its ability to pay for content.
Microsoft makes more sense, especially since it was pretty suspicious when Netflix CEO Reed Hastings stepped down from Microsoft’s board last year. There must have been something there.
However, the notion that Microsoft can sweep Netflix away for $13 billion is poorly conceived. A year ago, Netflix could’ve been had for half that price. Its stock was out of favor. Now that analysts are jacking up targets and subscribers are topping 33 million globally, do you really think Netflix and its shareholders will consider an exit strategy?
Apple, Microsoft, and Amazon could’ve probably had Netflix at the nadir of the Qwikster fiasco. They would have been welcomed as saviors.
They would’ve gotten a great price. Apple would make sure that the iOS Netflix app would be the best. Amazon could retire its less popular Amazon Prime streaming offering. Microsoft could’ve kept a cool toy from its rivals, making it the cornerstone of the new Xbox experience.
However, it’s too late to buy Netflix. The only ones buying Netflix now are tomorrow’s investors.
Recommended reading
The tumultuous performance of Netflix shares since the summer of 2011 has caused headaches for many devoted shareholders. While the company’s first-mover status is often viewed as a competitive advantage, the opportunities in streaming media have brought some new, deep-pocketed rivals looking for their piece of a growing pie. Can Netflix fend off this burgeoning competition, and will its international growth aspirations really pay off? These are must-know issues for investors, which …read more
Source: FULL ARTICLE at DailyFinance
By Rick Munarriz, The Motley Fool
Filed under: Investing
Drywall, hardwood planks, and Netflix ?
Jim Cramer offered an interesting perspective on the leading video service as a housing play during last night’s Mad Money show.
“Despite its run, I think the stock has a strong chance of repeating its excellent performance,” Cramer argues in discussing the shares that more than doubled this past quarter — and have more than tripled since last summer.
He positions Netflix as a takeover target. He also points to the success of shows on cable networks in recent years. The desire for fans to get up to speed is now coming from binge viewing on Netflix.
Believe it. Mad Men — not to be confused with Mad Money — returns on AMC Networks for its sixth season on Sunday. When ratings for the fifth season’s premiere spiked 20% last year, the show’s producer gave Netflix a lot of the credit.
After all, the show made its four earlier seasons available through the streaming service months ahead of the new season. At the time, Netflix chief content officer Ted Sarandos pointed out that 3.5 million of its subscribers watched the fourth season of the show through the video service, and that 800,000 accounts went through all of the earlier seasons.
However, Cramer’s most interesting claim is that Netflix is a housing play.
There’s no place like home screen
“As more homes are built, cable, dish and Netflix get hooked up,” he says. “It’s a natural tailwind. When you buy that new TV it has that Netflix clicker on the bottom.”
He’s right. The home resale market is buzzing again, but the real growth is taking place in new construction.
Lennar reported blowout quarterly results two weeks ago. New home deliveries were up 28%, but new orders rose by an even more encouraging 34%. We may be only talking about thousands of incremental homes in Lennar’s case, but when you work the math across the countless other real estate developers, you’re seeing a lot of homes going up in areas that were just tracts of land when the housing market stalled.
There are plenty of new homes going up, and saving money after signing off on a new mortgage makes in-home entertainment a very smart play. Given the three-figure monthly ransoms offered by cable and satellite companies, it wouldn’t be a surprise to see a lot of first-time home buyers this year simply going for a Wi-Fi connection and sticking with HD antennas for over-the-air networks and Netflix for everything else.
Netflix is already at more than 27 million domestic subscribers, making it larger than any single cable or satellite service, and that figure is only going to get bigger as more video buffs get their own place.
The streaming dead is alive
The tumultuous performance of Netflix shares since the summer of 2011 has caused headaches for many devoted shareholders. While the company’s first-mover status is often viewed as a competitive advantage, the opportunities in streaming media have brought some new, …read more
Source: FULL ARTICLE at DailyFinance
By Dan Caplinger, The Motley Fool
Filed under: Investing
Once again, the tug-of-war between a troubled Europe and improving conditions in the U.S. played out in the stock market today, as markets plunged early but managed to recoup most of their losses by the end of the day. What’s increasingly clear is that the situation in Cyprus will continue to be volatile for a while, but the bigger concern is whether larger economies will take the wrong message from the Cypriot bailout. Rising bond yields in Italy and Spain reflect that uncertainty, but U.S. markets proved their resilience once more in looking past Europe‘s mess to solid economic news domestically. By the close, the Dow Jones Industrials were down just 33 points, and broader markets were even more narrowly mixed, with the Nasdaq actually rising on the day.
Helping to pull the Dow off its lows was Microsoft , which gained 0.75% on reports that it is looking to sell its Mediaroom Internet-protocol television unit to Ericsson. The companies didn’t confirm the report, but with Microsoft looking to focus on delivering content through its Xbox platform, the unit could arguably be an extraneous part of its overall business strategy.
UnitedHealth Group was the biggest gainer in the Dow, rising 1.75% on optimism that much-feared cuts of Medicare Advantage reimbursement rates might get rescinded. A complex calculation involving the interplay between physicians’ pay and Medicare Advantage plans arguably gives the Medicare program the ability to reverse the proposed reimbursement-rate reductions. Given the importance of the plans to UnitedHealth, the move could make a big difference to its bottom line.
Beyond the Dow, Mattress Firm bounced 12% higher after reporting earnings last night. Despite charges related to an acquisition and a drop of 1.6% in same-store sales, the mattress company gave positive revenue guidance and argued that the newly acquired stores would help drive greater profits for the company. Given the big hit the industry took this time last year, the rebound in mattress companies is a sign of how housing-related stocks are benefiting from rising home prices.
Finally, Diana Shipping sailed higher by 13%, hitting a new 52-week high as renewed calls from Jim Cramer that the shipping industry has hit bottom lifted the stock. Given how far the industry has fallen, with the Baltic Dry Index still at less than a tenth of its peak levels, even the whiff of good news has been enough to inspire long-suffering investors to hope for a turnaround.
Despite today’s gains, Microsoft has frustrated investors for years. Is it finally Microsoft’s turn to shine? Read our premium research report on Microsoft and find out what our analyst believes are the top reasons to buy or sell the stock. He’s also providing regular updates as key events occur, so make sure to claim a copy of this report now by clicking here.
By Dan Caplinger, The Motley Fool
Filed under: Investing
Investors got what they expected over the weekend, as a bailout for banks in Cyprus finally materialized at the last minute. But apparently, the exact terms of the bailout weren’t what investors had been hoping to see. After initially gaining ground and sending the S&P 500 close to a new record early in the day, stocks reversed dramatically, plunging to losses of more than 100 points. The selloff came from fears that a cascading impact of bank-related problems in other European countries such as Spain and Italy could result from the Cypriot deal. By the close, the Dow Jones Industrials were down 64 points, although broader markets were down a bit less steeply.
But some stocks in the Dow rose. UnitedHealth Group gained three-quarters of a percent as it managed to pick up some business serving Arizona’s Medicaid program in the two largest counties in the state, as well as winning a contract serving children’s rehab statewide. The pick-up came at the expense of Vanguard Health , which saw its shares drop more than 6% on news that it had lost the Arizona contract. Health-care companies will increasingly have to defend their territory as competition increases, especially on government contracts that will get more important as Obamacare takes effect.
Elsewhere, Acadia Pharmaceuticals soared nearly 10% as an analyst from Jefferies expects its psychosis treatment pimavanserin, which targets patients who have Parkinson’s disease, to gain FDA approval. Following favorable data reported at a conference of neurologists last week, the company has already seen substantial gains recently, but even an application for approval could still be some months away.
Finally, Nordic American Tankers jumped more than 5% on favorable comments from much-followed analyst Jim Cramer last Friday night. Although the tanker company is arguably a speculative play based on an expected eventual rebound in the hard-hit shipping industry, especially given analyst expectations that the company will keep losing money at least through 2014, Nordic American does have a relatively clean balance sheet, giving it the ability to make smart strategic asset acquisitions as well as letting it sustain a substantial dividend yield approaching 6%.
UnitedHealth and other health insurers saw their shares fall immediately when President Obama got re-elected, but is Obamacare a death knell for health insurers, or is the market missing out on some of the opportunities the law presents? Find out about the prospects for UnitedHealth in a post-Obamacare world by reading the Motley Fool‘s premium report on UnitedHealth. Don’t miss out — simply click here now to claim your copy today.
var FoolAnalyticsData = FoolAnalyticsData || []; …read more
Source: FULL ARTICLE at DailyFinance
By Rick Aristotle Munarriz, The Motley Fool
Filed under: Investing
Some stocks take a pounding, but there’s usually what they call a dead-cat bounce. Even if a stock‘s inevitable path is to head lower, there’s usually a respite in the downticks.
It doesn’t always pan out that way.
Last week was rather uneventful for the market. The Dow 30, Nasdaq, and S&P 500 all closed lower, but none of the market gauges shed more than 0.2% of their value.
Some stocks weren’t that lucky. More than a few actively traded companies fell every single trading day last week, and more often than not it happened without any material news. Investors just decided to move on, and the small daily downticks added up to double-digit percentage share-price declines.
Let’s take a closer look at five of the companies that saw their share prices drop in each of this past week’s five trading days.
|
Company |
Mar. 22 |
Weekly Loss |
|---|---|---|
|
JDS Uniphase |
$13.47 |
(12%) |
|
Nabors Industries |
$15.41 |
(11%) |
|
Ariad Pharmaceuticals |
$19.38 |
(11%) |
|
Dendreon |
$4.89 |
(10%) |
|
Amarin Pharmaceuticals |
$7.63 |
(10%) |
Source: Barron’s.
JDS Uniphase offered product updates during the Optical Fiber Communication Conference/National Fiber Optic Engineers Conference during the week. The optical networking specialist announced the availability of several new items. It wasn’t enough. Even though JDS Uniphase is still growing — analysts see marginal upticks in revenue and profitability for the fiscal year ending in June — investors were still set on rotating out of a company that had hit a fresh 52-week high last month.
Nabors Industries slipped despite an analyst upgrade. Zacks Equity Research is boosting its rating on Nabors from underperform to neutral, encouraged in part by the onshore contractor’s recent decision to start paying quarterly dividends. Then again, it’s not as if a hold rating is something to scrapbook.
Ariad Pharmaceuticals had good news on Friday, as the European equivalent of the FDA approved the company’s chronic myeloid leukemia (CML) drug Iclusig. One can argue that the market was already banking on approval, but is that any excuse for Ariad to close lower every single day last week?
Dendreon is another biotech that slumped on the week. The company kicked off the week by announcing that it had agreed to settle a securities class action lawsuit. It also presented at the 25th Annual ROTH Conference in California. These are typically events that push a stock higher. Settling complaints stemming from accusations that company executives made misleading statements a couple of years ago eliminates the uncertainty of the lawsuit’s financial obligations. Presenting at an analyst conference gives a company the opportunity to shine as it presents its bullish scenario. However, those events weren’t enough to keep sellers from moving on.
Finally, we have Amarin losing weight. The pharmaceutical stock got panned by Jim Cramer on Mad Money. “We’re going to veto it,” Cramer offered during Thursday’s Lightning Round segment. He compared it to the New York Mets without R.A. Dickey, the Cy Young winner that the team inexplicably …read more
Source: FULL ARTICLE at DailyFinance
Filed under: Earnings, Real Estate, Banking
Radian Group Inc. (NYSE: RDN) has been on fire and shares are ticking up yet again on Tuesday. It has risen for eight consecutive trading days, and if Tuesday’s preliminary gains can hold then it could be Radian’s ninth consecutive trading day with gains.
On Tuesday morning we saw that Barclays raised the ratings to Overweight from Underweight on both Radian and on MGIC Investment Corp. (NYSE: MTG). MGIC‘s price target was raised to $8 from $1, and Radian’s price target was raised to $14 from $4 for the stock.
Radian was also raised to Outperform from Market Perform at Keefe Bruyette and Woods just on Monday.
MGIC shares have risen for five consecutive trading days, and this will be a sixth consecutive day of gains if it holds.
Market pundit and TV personality Jim Cramer just said on CNBC that there may be a mortgage settlement coming the way of Radian and that it could be worth another $4 alone to the stock price.
Radian shares are up 8% to $10.69, a new 52-week high ($10.04 prior high). MGIC is up 15% to $4.82, and its 52-week high is $5.15.
Filed under: 24/7 Wall St. Wire, Analyst Calls, Banking & Finance, Housing Tagged: MTG, RDN
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Filed under: Technology, Earnings
Wall St. analysts take a beating sometimes, and they are praised at other times. The lessons of the endless chasing of Apple Inc. (NASDAQ: AAPL) with higher and higher analyst price targets and sales figures came with a big price. The stock got way overbought as a result. Now with Google Inc. (NASDAQ: GOOG) crossing above $800 for the first time ever, and with two calls going up to $1,000 for a price target, we cannot help but wonder if this is some of the same Wall St. mojo happening here.
We have seen two serious Google upside calls in the past 24 hours. Bernstein raised its price target to $1,000 from $820, while CLSA lifted its price target to $1,000 from $900. The long and short of the matter is that Wall St. was far too negative and far too cautious on the trends impacting ad sales for Google and many other key online properties.
Our issue is that when you see one major hurdle crossed, and then a series of new higher hurdles and higher projections being made, it can signal a top. That might not be a long-term top, but how many days in a row can something rise indefinitely.
Also note that Jim Cramer touted a $1,000 target for Google briefly back in 2007, before the Great Recession wiped off the map that and every other bullish prediction on anything and everything. Before you read too much into that prior $1,000 note, it was a reference more than it was a dire prediction.
Another consideration is that when upside calls get too aggressive, they can be reckless. Last year when Priceline.com Inc. (NASDAQ: PCLN) was in the race to $1,000 with Google and Apple, the caveat was that when you read “pom-pom” articles that sound like a cheer leading squad, it may not signal the end of a run. It does, however, signal that the easy money already has been made.
One more caveat. Google is one of the companies in which shareholders have NO power whatsoever. And nonexecutive chairman (and ex-CEO) Eric Schmidt has made a move to unload about half of his Google holdings.
Google shares are up in mid-Thursday trading by $31.40 to $795.60, against a 52-week range of $556.52 to $808.97. Its market cap is now about $262 billion, and it trades at what Wall St. expects will be about 17.5 times the expected 2013 consensus earnings estimate from Thomson Reuters. The consensus estimate is $831.43.
Filed under: 24/7 Wall St. Wire, Analyst Calls, Internet, Technology, Technology Companies Tagged: AAPL, GOOG, PCLN
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Filed under:
‘Rags to riches’ tales are a dime a dozen in America, but we were genuinely surprised when Jim Cramer opened up about his brush with homelessness Tuesday.
The former hedge fund manager and controversial CNBC host had just graduated from out of Harvard Law when he hit rock bottom, CNBC’s Lee Brodie reports:
“After a thief broke into his modest California apartment and stole absolutely everything, Cramer had nothing left and nowhere to go. Cramer was living out of his…
Jim Cramer of CNBC’s ‘Mad Money’ Used to Live Out of His Car originally appeared on DailyFinance.com on 2013-02-14T11:25:00Z.
By Darcy Travlos, Contributor Since Apple’s earnings announcement, analysts’ reports read like obituaries. They have piled on hard and fast to drop estimates, slash price targets and call the death of Apple’s Innovation. Jim Cramer migrated Apple from the Growth category to the Value category of investing. In just two months, Apple has fallen from investor admiration to investor admonition. Does such swift and extreme shift create an opportunity to invest? Or is it a value trap?
Source: FULL ARTICLE at Forbes Latest
