04/25/2012: GARY ON NATIONALLY SYNDICATED INVESTORS EDGE RADIO BROADCAST

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https://archives.warpradio.com/btr/InvestorsEdge/042518.mp3

JUST LETTING YOU KNOW

We knew yesterday we were going to have a gap to the upside today off of Apple. But we also had Fed meeting today in which a whole bunch of people get together in a room and say, “We’re going to print money we don’t have to buy bonds to keep interest rates down in order to do this, that and the other thing….but don’t worry, everything’s going to be okay in the long run.”

There’s not a thing I like about what Bernanke is doing or what he’s done in the past. That’s my thought process. In any economy, if you print $3 trillion, keep interest rates at zero percent…you can get things on the move. It’s the repercussions of that kind of interference in markets that I worry about. And they interfered in the past, going to ridiculous rates, enabling the major bubble in hours. My worry is that they’re enabling another bubble here…and it only ends badly.

Apple…Some Very Big Numbers

Apple today, finished up 50. It’s like a 56 dollar stock going to 61 in one day. That’s all it is. Volume was tepid for a gap on earnings. Let me tell you a few tidbits here here:

  • Revenues were up 59% percent.
  • Earnings were up 92%.

These are very big numbers. On GaryK.com, I put up some numbers on Apple. Click here to view them. Just a fabulous story.

Here’s a couple more tidbits that even I didn’t know.

I woke up this morning and I turned on Bloomberg. And it turns out that Apple is 18% of the Nasdaq-100. The Nasdaq-100 today was up 2.7% and Apple was up about 9% today. That’s equals to about 1.7% of the 2.7% gain on the Nasdaq-100.

  • Apple is 12% of the Nasdaq.
  • Apple is 4% of the S&P 500.

What else happened in Apple is that a lot of things moved in sympathy. A bunch stocks that have stuff going into Apple got slammed this week because of the news out of “disappointing activation numbers from Verizon.” But they all turned-tail back to the upside today. So the SOX was up 9 and change off of the Apple news.

On top of that, the higher beta names got a bid, when they saw Apple have a bid.

Apple held the 10-week/50-day moving average (after undercutting it just for a day) and when back up above it. It hit 618 at 9:55 ET and closed at 610. And I wrote down this note to tell you:

In the near-term, I really don’t have a clue here. What one would hope for, is it to sit around a bit for a week, put in some sort of handle…and then head on upwards. That is the take.

There are 34 Apple buy recommendations, one sell with a 280 price target, and I think there were 6 holds…

That is the whole Apple story and I wanted to repeat it to you because I got a bunch of emails today asking me about Apple.

Not many companies come around that can stand the test of time. And the amazing thing about Apple is that it’s really a three product company, as whole. But what they’ve been able to do is the “cool factor” to make you get the next one that shows up. And they hold back just enough in each product, so that you’ll want to get each new version as they are released.

The other part of the equation is that they’re just in single digits worldwide on the smart phones while getting 75% of the profits.

So all around…a darn good day. 

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Gary Kaltbaum owns Kaltbaum Capital Management, LLC (“KCM”), an investment adviser registered with the U.S. Securities and Exchange Commission. The opinions expressed herein are those of Mr. Kaltbaum and may not reflect those of KCM. The information offered in this publication is general information that does not take into account the individual circumstances, financial situation or individual needs of an investor. The information herein has been obtained from sources believed to be reliable, but we cannot assure its accuracy or completeness. Neither the information nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. Any reference to past performance is not to be implied or construed as a guarantee of future results.