Sexton
During the last month an analyst, I think it was a fella named Wu, said you just have to throw away the traditional metrics and drink the kool-aid when it comes to Apple *grin*
I am not at great risk, though I am at some risk. I figure I sell the calls on Monday and Tuesday and I have trailing stops on my long shares.
Apple could use another consumer electronics hit - the video iPod will be one. They need another one.
The software business is strong. The services/music business is strong. The CPU business is growing far more rapidly than the industry rate. The server business and storage business is growing strongly, though under the radar. Enterprise is growing, again under the radar.
The product development model and process at Apple seems to be working well.
So there are risks, but I am, to the extent possible, protecting myself from them. The phone network will happen before the end of 2006, I think. It will be huge if Apple does their usual improvement of the user interface.
It is worth holding a core position and playing December is pretty much a no brainer, however, I would not be a buyer of long shares here - not because I don't think there may not be upside from here, but because the risk is too high.
Remember, in April 2003 the shares were at $7, split adjusted.
AI
