The recent Japanese earthquake led to supply constraints and consequently higher prices for many of Apple's component suppliers. However, Apple has agreed to absorb the additional costs related to components in exchange for smooth shipments. Although Apple's profitability could be slightly impacted due to higher costs, we believe it's still a market share game for Apple's hit products like the new iPad 2 and so ensuring on time deliveries will put more pressure on the likes of Motorola Mobility and Research in Motion that are trying to work their way into the tablet market. We maintain $420 price estimate for Apple stock, which is about 20% above market price.

Continue reading Apple's Move to Absorb Higher Component Costs Will Help iPad 2

Apple's Move to Absorb Higher Component Costs Will Help iPad 2 originally appeared on BloggingStocks on Thu, 07 Apr 2011 11:00:00 EST. Please see our terms for use of feeds.

OmniVision (OVTI - option chain) stock is trading sharply lower today after Sony (SNE) CEO Howard Stringer said late Friday that his company is supplying camera components to Apple (AAPL). This could pose a threat to OVTI's AAPL business, as OVTI had been the main supplier of image sensors for the iPhone. If you think this stock won't be rising too far in the coming months, then it could be a good time to look at a bearish hedged play on OVTI.

This morning, OVTI opened at $34.06. So far today the stock has hit a high of $34.10 and a low of $32.20. As of 12:15, OVTI is trading at $33.15, down $3.04 (-8.4%). The chart for OVTI looks neutral and S&P gives OVTI a neutral 3 STARS (out of 5) hold ranking.

Continue reading Will Apple Squeeze OmniVision Out of the iPhone Business?

Will Apple Squeeze OmniVision Out of the iPhone Business? originally appeared on BloggingStocks on Mon, 04 Apr 2011 13:00:00 EST. Please see our terms for use of feeds.

Most investors would like a "do over."

They look back on certain investments and wish they'd never heard of, much less put money in them. Sure things like your good friend's invention that would make beer in one day from water and weeds. Or your brother's idea of selling real estate on Saturn. Everyone has their own stories. Mine are usually related to private investments in the medical device field or biotech, though I did have one out of Florida that made a "pig" that ran through oil pipelines to check on their safety. After meeting the founder who looked more like a used car salesman that caught a great sale on polyester suits, I should have known better right then. But I didn't.

Continue reading Comfort Zone Investing: If I Could Start All Over Again ...

Comfort Zone Investing: If I Could Start All Over Again ... originally appeared on BloggingStocks on Sat, 02 Apr 2011 10:30:00 EST. Please see our terms for use of feeds.

Two questions on investors' minds are: Should I buy Apple (AAPL), and where is the stock headed? Leading banks and financial advisory firms hire analysts, whose job it is to figure out the strengths and weaknesses of a given company -- and from that data make a recommendation and a projected stock price.

At Morgan Stanley that analyst is Katy Huberty. In a Fortune article she describes two possible scenarios for Apple. One is her best case. The other is her bearish take.

Continue reading The Case for Apple to Reach $540

The Case for Apple to Reach $540 originally appeared on BloggingStocks on Fri, 01 Apr 2011 15:25:00 EST. Please see our terms for use of feeds.

As a result, The PC industry is bleeding badly. Look at these numbers:

• February revenue from PC makers in Taiwan is down 20%. The number is significant because Taiwan manufacturers 90% of all PCs.
• Hon Hai (HNHAF), which makes Apple products and PCs for Dell (DELL), saw shipments down 18% in February, as reported in Financial Times.
• Gartner, a research consultancy, lowered PC shipments by 5% to 387.8 million units this month.

Continue reading Acer Losing Market Share to Smartphones and Tablets

Acer Losing Market Share to Smartphones and Tablets originally appeared on BloggingStocks on Fri, 01 Apr 2011 13:00:00 EST. Please see our terms for use of feeds.

iShares MSCI South Korea Index Fund (EWY) April put option implied volatility is at 25, July is at 29; compared to its 26-week average of 27, according to Track Data, suggesting less near-term price movement compared to outer month risk.

CBOE Volatility Index (VIX) closed up 1.53 to 19.44.

Option volume leaders today: Apple (AAPL), Citigroup (C), Netflix (NFLX), Kraft (KFT), according to Track Data.

Update is by Stock Specialist Paul Foster of theflyonthewall.com.

Options Update: iShares MSCI South Korea Index Fund April Volatility Low, July Elevated originally appeared on BloggingStocks on Tue, 29 Mar 2011 09:00:00 EST. Please see our terms for use of feeds.

Verizon Communications (VZ), first discussed here on February 12, 2009, at a price of $29.86, continues to power higher, ascending to about $37 with a few hiccups, and I still like the shares here.

In 2011, slow growth and dividend play Verizon should post a 2% to 2.5% revenue gain, after flattish revenue in 2010, with data services being the key revenue increase driver. Meanwhile, Verizon's landline business continues to provide revenue stability.

Continue reading Verizon: Safety Plus Growth

Verizon: Safety Plus Growth originally appeared on BloggingStocks on Mon, 28 Mar 2011 11:00:00 EST. Please see our terms for use of feeds.

Apple's (AAPL) iPad 2 got off to a great start during the first weekend of its launch, selling an estimated 400,000 to 500,000 units. Apple holds a substantial lead in the tablet market over competitors like Research In Motion (RIMM), Motorola Mobility (MMI), Dell (DELL), Samsung and LG Display.

How Much Will Suppliers Benefit from iPad 2 Sales in 2011?

Here we take a look at how much various iPad 2 component suppliers stand to gain from the product's success. We assume that Apple will continue to source iPad 2 components from the same set of suppliers throughout 2011.

Continue reading How Much Will Suppliers Gain from iPad 2 in 2011?

How Much Will Suppliers Gain from iPad 2 in 2011? originally appeared on BloggingStocks on Sat, 26 Mar 2011 14:00:00 EST. Please see our terms for use of feeds.

A new business model is springing up right under our noses. The big players like Apple (AAPL), Amazon.com (AMZN) and Google (GOOG) have put together a one-stop shop in their app stores.

First off, an app store is just that, a place where you can pick and choose the apps you want to download. The app store is also a place where entrepreneurs can develop an app and with permission place it on the iPhone, iPad or Android device.

Continue reading App Stores: A New Business Model

App Stores: A New Business Model originally appeared on BloggingStocks on Sat, 26 Mar 2011 12:50:00 EST. Please see our terms for use of feeds.

The fast moving world of investing can turn on a dime, especially if you own technology stocks. Research In Motion (RIMM) was a smartphone darling. But then came the iPhone and now the iPad. Then we have Google's (GOOG) Android following on Apple's (AAPL) heels.

RIM suddenly woke up a found that it had fallen off its perch. Now the company is scrambling to do catch up. BlackBerry is losing North American market share and the company expects to ship only 13.5 to 14.5 million Blackberry's this quarter, down from 14.9 million last quarter, according to Reuters.

Continue reading Would You Buy RIM on the Dip?

Would You Buy RIM on the Dip? originally appeared on BloggingStocks on Fri, 25 Mar 2011 15:00:00 EST. Please see our terms for use of feeds.

A few weeks back, we noted that while Apple's (AAPL) products continue to see huge demand, a key concern for the company is management of supply-related constraints. The recent Japanese earthquake has now added to these concerns. According to market research firm iSuppli, the earthquake may cause logistical disruptions and supply shortages for the newly launched iPad 2. Although Apple remains king of the tablet market, it is expected to face a growing set of challengers in 2011 from Research In Motion (RIMM), Motorola Mobility (MMI), Dell (DELL), Samsung and LG.

We maintain a $420 price estimate for Apple stock, roughly 25% above market price.

Continue reading Japanese Earthquake Could Cause iPad Shortage

Japanese Earthquake Could Cause iPad Shortage originally appeared on BloggingStocks on Thu, 24 Mar 2011 12:30:00 EST. Please see our terms for use of feeds.

"According to the Spectrem Group, which recently polled the country's wealthiest people, they're the most optimistic they've been in months," says Marc Lichtenfeld.

The contributing editor to Investment U explains, "Let's take a look at 3 stocks that millionaires (and aspiring ones) should pay attention to: Apple (AAPL), Bristol-Myers Squibb (BMY) and Varian Medical Systems (VAR).

"And according to Fidelity, 83% of millionaires surveyed said the financial crisis did not shake their confidence in investing. And of those who said they'll invest more money in the stock market, nearly 60% of them plan to buy technology stocks. And just under half expect to acquire pharmaceutical and healthcare stocks.

Continue reading Three Favorite Stocks of Wealthy Investors

Three Favorite Stocks of Wealthy Investors originally appeared on BloggingStocks on Wed, 23 Mar 2011 15:30:00 EST. Please see our terms for use of feeds.

This post is part of Japan: A Special Report for Investors.

"Japan's tsunami has struck worldwide," says Richard Moroney, the editor of Dow Theory Forecasts, which has maintained a model portfolio of blue chip stocks for over 50 years.

Here, he reviews a number of the top buy recommendations in the newsletter's portfolios to determine the potential risk posed by the recent tragic developments in Japan.

Stocks cited as "Focus List Buys" are are those issues that the service expect to significantly outperform the market over the next 12 months.

Continue reading Japan: Dow Theory's Blue Chip Portfolio Review

Japan: Dow Theory's Blue Chip Portfolio Review originally appeared on BloggingStocks on Wed, 23 Mar 2011 12:40:00 EST. Please see our terms for use of feeds.

Analyst Upgrades

• Cree (CREE) and Rubicon Technology (RBCN) to buy from neutral at Merriman.
• Children's Place (PLCE) to outperform from market perform at BMO Capital.
• Lockheed Martin (LMT) to neutral from underperform at BofA/Merrill.
• Copano Energy (CPNO) to outperform from market perform at Morgan Keegan.
• Motorola Mobility (MMI) to neutral from reduce at Nomura.
• Parker-Hannifin (PH) to buy from hold at KeyBanc.
• Akamai (AKAM), ShoreTel (SHOR), AMB Property (AMB) and ProLogis (PLD) to buy from hold at Stifel Nicolaus.

Continue reading Analyst Calls: AAPL, AEO, CREE, DELL, HPQ, IBM, LMT, MMI, MYGN, PH ...

Analyst Calls: AAPL, AEO, CREE, DELL, HPQ, IBM, LMT, MMI, MYGN, PH ... originally appeared on BloggingStocks on Thu, 17 Mar 2011 11:30:00 EST. Please see our terms for use of feeds.

Apple, Inc. (AAPL) was down at the time of this writing. The shares were off by 3.7% to $332.77. Volume was heavy.

The 52-week low for the stock is $199.25; the 52-week high is $364.90. The one-year chart still looks pretty good, but obviously anything can happen at this point. There's no real way to predict how deep the overall sell-off will get.

Continue reading Apple: Buy the Drop?

Apple: Buy the Drop? originally appeared on BloggingStocks on Wed, 16 Mar 2011 18:00:00 EST. Please see our terms for use of feeds.

Analyst Upgrades

• BB&T (BBT) and Aflac (AFL) to buy from hold at Deutsche Bank.
• Kodiak Oil & Gas (KOG) to outperform from neutral at RW Baird.
• Zhongpin (HOGS) to neutral from reduce at Global Hunter.
• Marathon Oil (MRO), Noble Energy (NBL) and Manulife Financial (MFC) to buy from neutral at UBS.
• Carrizo Oil & Gas (CRZO) to buy from hold at Canaccord.
• Comerica (CMA) to buy from neutral at Rochdale.

Continue reading Analyst Calls: AAPL, AFL, BBT, CMA, ENER, HERO, IBM, LVS, MRO, NE ...

Analyst Calls: AAPL, AFL, BBT, CMA, ENER, HERO, IBM, LVS, MRO, NE ... originally appeared on BloggingStocks on Wed, 16 Mar 2011 11:30:00 EST. Please see our terms for use of feeds.

Would you buy a used Apple (AAPL) iPad? It seems that the market for used electronics is booming. Much of it is resold to developing countries. But even here in the U.S. consumers are dumping their old iPads and buying the new iPad2, the Financial Times reports.

That sets up a huge secondary market. The big beneficiaries are eBay (EBAY) and the Apple Store. On eBay, for example, sales jumped from 3,300 to 7,700 in a week with prices dropping from $531 to $484 in just one week. If buyers had done some research they could have bought the same unit from the Apple Store for $399, according to the FT.

Continue reading Would You Buy a Used iPad?

Would You Buy a Used iPad? originally appeared on BloggingStocks on Mon, 14 Mar 2011 11:00:00 EST. Please see our terms for use of feeds.

Best Buy (BBY) captures one third of U.S. consumer electronics sales, according to the Wall Street Journal (subscription required). That's the good news.

But now Best Buy is losing market share. You are probably wondering why this has happened. After all since Circuit City evaporated into bankruptcy, you would think that Best Buy would be king of the hill. Not so. Other trends are developing that are eroding Best Buy's territory. Here are a few them:

Continue reading Best Buy Faces a Bleak Future

Best Buy Faces a Bleak Future originally appeared on BloggingStocks on Sun, 13 Mar 2011 14:50:00 EST. Please see our terms for use of feeds.

Advanced Micro Devices (AMD) competes with Intel (INTC) and Nvidia (NVDA) in the PC microprocessor and graphics businesses. Our price estimate for AMD stands at $9.30, which is roughly in line with market price. We estimate that although most of the company's value comes from microprocessor business, about 14% can be attributed to graphics.

One of the recent wins in this regard was Apple's (AAPL) plan to use AMD's graphics cards in its Macbook Pro notebooks. What does this tell us about AMD?

Continue reading AMD's Macbook Pro Inclusion Signals Upside for Graphics Market Share

AMD's Macbook Pro Inclusion Signals Upside for Graphics Market Share originally appeared on BloggingStocks on Sat, 12 Mar 2011 14:00:00 EST. Please see our terms for use of feeds.

With today's launch of the Apple (AAPL) iPad 2, it is important to peer back on some of the highs and lows of the company's first tablet.

Notable highs include Apple's milestone of selling over a million iPad units before reaching the first month of its release. Apple's holiday season was also impressive, with over seven million units sold in Q4 2010.

Continue reading Looking Back on the iPad Tablet

Looking Back on the iPad Tablet originally appeared on BloggingStocks on Fri, 11 Mar 2011 14:30:00 EST. Please see our terms for use of feeds.