Apple overshadows...everything.

Wednesday, January 25, 2012

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In a season of mediocre earnings reports for 2011 fourth quarter, with tech companies like Yahoo (YHOO) and Google (GOOG) trailing behind, there is one company that made historic treads. Apple Inc. now the most valuable company in the world, reported earnings that "single handedly erased a drop in the S&P 500 for the December quarter" according to Bloomberg LP. Wall Street was estimating an average earnings of $10 a share. But similar to their products, the stock exceeded all expectations, rounding out at $13.87 a share and $48.6 billion in revenue. The stock price, which is trading at a resistance of around $449 a share, sets the company worth over $400 billion. Overall during the fourth quarter, Apple sold 37 million iPhones, and 15.5 million iPads.

Is Apple still a good buy?

A hold position would be better. Apple still needs a price adjustment after shooting up $30-$40 a share in seconds, but also there will soon be some major activity within the company. Apple is sitting on a cash hoard of almost $100 billion, enough to buy out some European countries and still be able to produce iPhones and iPads. Some are speculating a dividend round. Others, as am I, are speculating a buyout of supply side companies, making Apple a huge horizontally built conglomerate. If this happens, this would be a very good cost cutting move for Apple, allowing better margins and profits per device. Apple, I believe, still has potential. Some analysts are estimating Apple stock to reach between $500 and $575 a share in a year's time.

Whatever is going on there in Cupertino though, they are doing something right. Kudos to CEO Tim Cook and his team. He's gained approval of fans and share holders.

By: Marcus Calpakis

Email your thoughts: mcalpakis@mygreenlime.com

Follow: @mcalpakis or @mygreenlimecom

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Is Apple at it's end?

Monday, January 23, 2012

Apple Inc. (AAPL) is the perfect definition of a turbulent company. The late Steve Jobs, cofounder and the late CEO was fired, then rehired to Apple, managed to save it when 90 days from bankruptcy and turned it into the most valuable company in the world. With shares trading well into $420's per share, Apple's valuation is in direct competition of Exxon Mobile, around $400 billion. However, this number is a magical number for technology companies. Here's why:

During the 2000 dot com bubble, Cisco Systems was worth almost $500 billion. Now it's worth $95 billion, a fraction of its past valuation.

Microsoft was valued at similar numbers, above $400 billion, and then tumbled to its present valuation of $247 billion, almost half of its high's.

Apple however is an innovative company, producing and controlling hardware and software, along with beloved products such as iPhone and iPad. Analysts are estimating AAPL to close this year 2012 as high as $470 a share, setting it well above Exxon Mobile. Therefore, Apple may be able to handle this explosive valuation better than its past counterparts. Perhaps Apple truly is different.

By: Marcus Calpakis

What do you think? tweet back: @mcalpakis or @mygreenlimecom

or email your thoughts: mcalpakis@mygreenlime.com

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Jamba Juice is pumping up its 2012 business growth plan.

Monday, January 16, 2012

Jamba Inc. (JMBA), the parent company of Jamba Juice stores, says it has successfully completed phase one of its BLEND turn around plan and will be entering phase two: aggressive growth. According to CEO James White, Jamba Juice is about to explode. White described the next phase of Jamba Juice to introduce 50 domestic and around 10 international stores. More than this though, White is aiming to redefine the qualitative aspects of Jamba stores. 

White wants Jamba Juice stores to become synonymous with top of quality and healthy lifestyle choices. In addition to this 'Rolls Royce of Juice stores' outlook, Jamba will be aiming to gain exponential growth through alternative venues such as universities, airports, and school cafeterias. 

Is this possible though? Is it possible to gain a top quality, non-fast food image with a lack of exclusivity?  This second phase almost puts Jamba Juice as convenient as McDonald's Restaurants and fast food chains. From a consumer perspective, the two facts of being top quality yet cheap and fast is very improbable. To achieve both, there is only one option:

The Starbucks option of inflating prices and upgrading atmosphere. Coincidentally, Jamba Inc. has identified its biggest competitor as Starbucks, who is now entering the juice bar convenience sector in 2012 more aggressively. This year, Starbucks will be opening its first 'juice bar' style concept, in direct competition with Jamba Juice.

myGreenLime's verdict? be skeptical. Jamba Juice is currently trading at well below $2.00 a share, and growth in revenue and stock is almost guaranteed, but Starbucks may be limiting the potential of Jamba's second phase.

By: Marcus Calpakis

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When Nuclear Threat Causes Oil Embargo

Wednesday, January 11, 2012

Iran is heavily developing a nuclear program that may be threatening to the wellbeing of...well, everyone. The last two things politicians and regulators want to deal with is a nuclear threat and a nutty dictator. However, the US's latest endeavor to suppress the Iranian nuclear program is an effective move. The US is block all imports of Iranian crude oil, and is campaigning for other nations to do the same. Japan, the second largest importer of Iranian oil, agreed to take action to reduce import of Iranian oil, as did the European Union.

Now, the question we always ask: What does this mean for you?

There will be less crude in circulation in the US, EU and Japan. However, this is not a calling to buy oil future contracts or anticipate oil doubling to $200 a barrel. (currently around $102 a barrel.) The largest importer of Iranian oil is China, who immediately ignored US Treasury Secretary Geithner's effort to ban Iranian oil, thus making China the greatest beneficiary of this embargo.

Also, the EU cannot afford to fully block Iranian oil, considering the nations are on the  brink of recession and the most fragile country, Greece, is heavily dependent on Iranian crude oil. Additionally, Germany is slowly catching the 'recession cold' as their economy contracted .25%.

Ultimately, don't bet on crude oil price rises. Iran is still exporting to China, it's largest customer, and to main parts of Europe. Betting on a European recession seems a more justifiable position.

By: Marcus Calpakis

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