In recent months, Apple's (Nasdaq: AAPL) CEO Tim Cook has repeatedly stressed that the company still has a number of aces up its sleeve. Cook has dropped coy hints that bold new products are in the pipeline, so Apple could still surprise investors with better-than-expected growth.
But even if Cook is right and Apple is on the cusp of an impressive product release cycle, then he's wrong on one key point: Apple will never again be a great growth story it once was.
The company's annual revenue base is fast-approaching the $200 billion mark, so even if the company is layered in tens of billions of dollars in new revenue, that would only offset some of the revenue declines the Apple will experience from maturing key products and competitive pressure, which could lead to more price cuts.
A little over six weeks ago I produced a video on the relationship between Apple and RIMM.
I called it the "Battle Of The Tech Titans," and in this short video I explained that we felt the relationship was changing between Apple, Inc. (NASDAQ_AAPL) and Research In Motion, Ldt (NASDAQ_RIMM). I detailed a strategy of approaching this market using a trading strategy that I call "pair trading" or "trading pairs."
What trading pairs means is that you buy one market while going short the other market in the same sector. Now Apple and RIMM are battling it out right now in the smart phone sector. It remains to be seen who is going to be triumphant in this battle but it would appear as though Apple may have the upper hand based on its very successful "APP" store.
Trading pairs is what many professionals do when they are unsure as to the direction of the general market but feel pretty comfortable in their analysis of the relationship between two stocks. I hope you find the video both informative and educational.
The video is free to watch and there is no need to register. I would love to get your feedback about this video on our blog.
Here's something you can use right away; it will help you enormously on the Internet and it has nothing to do with MarketClub.
Well maybe it has a little to do with MarketClub, because I am demonstrating the new Safari 4 browser using our website, MarketClub.com. Safari 4 is the new web-browser available to users for free by Apple. This new version has been under beta-testing for quite some time and could possibly be the fastest browser on the web today.
In this week's video we are revisiting Apple, Inc (NASDAQ_AAPL). I last looked at Apple on April 9th, when it was trading at considerably lower levels than where we are right now. At that time I made some projections using MarketClub's Fibonacci tool, as to where I thought Apple was headed.