Friday, February 10, 2006

WalletDoctorBlog are you mad at me about AAPL?

Hey WalletDoctorBlog-

I received an awesome reply yesterday from
a gentleman intimately involved with Apple
Computers (you know who you are). He told
me that his son bought the stock low His son is
clearly on the road to great riches! He also extolled
the virtues of the company and its loyal fan base.
I whole heartedly agreed! Apple Computers
has the hottest products on the market right now
and is a well managed company.

http://www.walletdoctor.com/stockcd.htm

If you walk into Comp USA it is impossible
not to be immediately attracted to the incredibly
cool looking and well built Macintosh computers
and I-pod mp3 players. But the reality is that many
software producers cannot afford to write for the
Macintosh platform, even though it is far superior,
because of the near monopoly Microsoft achieved
with its non-Macintosh operating system. It was
for that reason that I, a former hardened Mac fan,
was forced to convert irrevocably to Windows XP;
I simply could not get my math and finance programs
to run on my Macintosh.

http://www.walletdoctor.com/stockcd.htm

Time will tell if the I-pod will hold out. There
are all ready a lot of mp3 I-pod rip offs out there.
However, when John Scully, former inside
CEO of Pepsi Cola pillaged Apple I thought
the company was in the garbage bin from
the standpoint of the �church of Macintosh�
and so did many others. The rise in stock price
has been remarkable but sustained increases
are not guaranteed.

http://www.walletdoctor.com/stockcd.htm

People in the public simply don�t understand
the importance of separation of church and state!
Marketing departments for companies like Apple
spend enormous energy creating a cult like church
following of worshippers of the company and
products. However this does not necessarily
have anything to do with share price.

http://www.walletdoctor.com/stockcd.htm

The state of stock investing is very different
from the church of consumerism. When investors
buy a stock they really only care about one thing;
�can they buy the stock low today and sell it high
tomorrow?� This is investing in a nutshell so
when you hear someone talking about how great
a company and its products are as if this MUST
mean that continued share price increases MUST
continue then yawn and move on (this is not
implied by the gentleman who sent me the
delightful e-mail I received last night, by the way)!

http://www.walletdoctor.com/stockcd.htm

Let me explain with numbers. Let�s say that
the son of the gentleman who e-mailed me
bought AAPL at $10 per share and sold it two
and a half years later at $80 per share at the
beginning of this year. That is a remarkable
700% holding period return (non-annualized
return). Now I ask you, �how much would
the stock price have to increase if you bought
AAPL stock at $80 for you to have a 700%
holding period return two and a half years
from now in 2008?�

http://www.walletdoctor.com/stockcd.htm

The answer is $640 per share!!! Yes, I am
telling that if you are interested in Apple
stock because of its recent spectacular rise
that you would have to get a $560 increase
in the share price to get the same result. Do
you see why I get so annoyed when I get
junk mail from investment gurus hawking
stocks like this to a gullible, inexperienced
public that worships the products and services
of a company like AAPL? Talk about rubbish!
You don�t need to rely on this momentum
garbage that seemed to work at the top of the
market in the nineties for a short while.
Momentum investing sucks because you never
know when the market is gong to turn on you.

http://www.walletdoctor.com/stockcd.htm

This is why it is so important for you to
learn to coldly identify stocks that are low
priced and buy them when nobody wants them.
Learn to buy them when they are not being hawked
by slick financial gurus. This is exactly what I
teach you to do in my course. All the signs
were there in AAPL if you knew how to read
them. There are so many great companies with
low priced stocks out there right now waiting for
you to buy them. Go here right now if you want
to learn how to invest in stocks the right way:

http://www.walletdoctor.com/stockcd.htm

-Scott

Ps. Remember that Wall Street wants to feed
you a line of bull that you aren�t smart enough
or capable enough to invest on your own. I am
teaching you that you are richer than you think.
You can become a great stock investor. Join me in the
revolt against Wall Street! Just forward this e-mail
to your buddies and tell all your friends to get their
fr.ee subscription to this e-zine by registering at:
www.WalletDoctor.com

If you wish to cancel your subscription, simply click once on the link below.
http://walletdoctor.com/cgi-bin/arp3/arp3-un.pl?c=208&p=7490&scope=all

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