Financial Analysis... Contrarian Insight... and Emerging Equity Ideas

The Apple Conundrum

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Who cares if this technology changes the world?  I don’t.  I only care that this stock, which is trading for just pennies, hits $0.50 in the next three months!

Right now, you can buy 10,000 shares for just $250… and when it hits 50 cents, those shares will be worth a cool Five-Grand!  For just $500, you can pick up 20,000 shares that could be worth an amazing $10,000 by the end of the summer.

Sounds too easy?  Well it is.  Once you read my Free report (by clicking here) you’ll see exactly why… heck, you may want to pick up a hundred thousand shares right now!

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In Today’s Issue…

àGood Time to Buy APPL? (SA)

àThe Right Way to Diversify (TF)

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àA Bite Out of an Apple (Shawn Ambrosino)

If you’ve read the Daily Market Beat for the past two years, you’d know these 2 things about me:

1.   That I’m a retired professional wrestler who got his start on the collegiate gridiron of the University of Central Florida. And…

2.   I love Apple products.

Now, before you call me trendy or a bandwagon jumper, realize that Apple computers and iPods have been a staple in my home for the past 10 years.

In fact, I think the iPod, Apple’s MP3 player, is one of the greatest inventions of all time, so don’t judge me.

Being in the business of making money from the markets, one of my favorite companies to talk about is, yes you guessed it – Apple.

Since the birth of the new digital age, (approximately 2002 by my standards, or the “The Year the iPod Ascended) this company’s stock has performed incredibly.

Now, if you were to have invested $5000 in AAPL in October of 2001 (the month the iPod debuted), not counting stock splits or dividends or anything else besides stock price…

Today, your 569 shares would be worth $198,451.02 – that’s a percentage gain of 3,869%!

Amazing, right?

Yes it is, and you could attribute a lot of that success to one of their founders, Steve Jobs and his vision of where he needs to take the business.

Well, for the past few years Steve Jobs has been battling pancreatic cancer as well as recovering from a liver transplant, and has had to take a few leaves of absence to deal with them…

Today, Jobs announced he was taking another leave of absence to focus on his health.

Jobs will continue as CEO and be involved in any of the major decisions the company may have to make, but as far as day-to-day operations go, Jobs has asked Chief Operating Officer Tim Cook to be responsible for those decisions.

In an email to Apple employees, Jobs wrote "I have great confidence that Tim and the rest of the executive management team will do a terrific job executing the exciting plans we have in place for 2011. I love Apple so much and hope to be back as soon as I can."

And his employees aren’t the only ones hoping for a speedy return, as shareholders as well are waiting with baited breath and hoping Jobs health concerns can be quickly remedied, as the stock took a nice 2% hit on the news.

History, however, points to the fact that while the stock dipped today, it could be set for another major jump.

So today may be the day to buy shares of this company, as it may be as low as it’s going to get for a while.

Either way, I wish Mr. Jobs a speedy recovery…
 

à Why Diversify? (Tim Fields)

Investing is a risky venture whether you are a seasoned pro or a rank novice. If this is your first turn around the dance floor you need to realize first and foremost that all investing is a risk of some sort.

There is no such thing as risk-free investing… though certain types of investments certainly involve more risks than others. This is the main reason that it is so important to have a stock portfolio that is diversified enough to offer some insulation from devastation due to one stock, bond, or fund performing poorly while also making a noticeable difference when one performs extraordinarily well.

In other words, diversifying your portfolio tempers the risks you are taking by investing to some degree. You've heard the old saying "never put all your eggs in one basket" I’m sure. Diversifying your portfolio moves your eggs around so that your nest has more than one layer of protection from the evils of the world and the fickle minds of men and women.

You want to diversify your investment portfolio so that one sector or one stock does not have the power to sink your financial future in one fell swoop. You want to feel that your investments are secure to some degree despite the many risks you will face. In fact, you need that sense of security in order to continue investing and building your financial future. You will find that it is nearly impossible to work on a financial future you do not believe in.

If that isn't enough however you want to diversify so that you have the opportunity to spread the wealth a bit too. You want to have a few opportunities to take the risks that make the real money in the stock market game. You cannot really do this if all your money is tied up in ventures that are designed to play it safe and run the marathon.

It's nice, on occasion, to feel the wind in your hair as you sprint towards your financial goals rather than going at the snail’s pace in exchange for security. In other words, diversity brings a sense of balance to your portfolio too.

There are all kinds of investments. You will find many different companies, many different sectors, different types of stocks, bonds, funds, and all manner of investment opportunities that each bring to the table a different type of risk and a different type of security upon which you can feast while organizing your portfolio in a meal that is meant to last a lifetime and keep your family fed, clothed, and happy for many years to come.

In order to do all of these things your financial situation needs to be as well rounded as you are as a person and your stock portfolio needs that liberal arts education that includes a little bit of everything.

If you can accomplish this with your portfolio then your financial outlook should be much brighter and bolder than it would be if you left all your efforts in one basket and dined on one plate for the rest of your life.

Take the time to check out your financial holdings and if you don't have a little bit of diversity on your plate it's time to add a little sprinkling of risk or conservation according to need.