Analyst Services
I often get questions from friends on stocks that I don’t own. I have found that people generally either want to buy or sell the stock and know where a good entry or exit price is. Beyond that, I often provide a brief fundamental and technical analysis on the stock to support my thesis.
In that vein, I’m going to try adding a Buy Now Paypal button so that strangers can request analysis on stocks too. What you can expect is a concise 1 page analysis on a position that will give you a good entry or exit point for the position. If your stock is not a good buy, I will provide the analysis, but also provide another stock in the same sector that is a better company to invest in. If the sector you are trying to buy into is weak, I will do the analysis, but also provide two other sectors that would be better to consider.
If you make the trade at the price I recommended and there is no opportunity for profit (on a buy recommendation) or to protect against a loss (on a sell recommendation) within 3 months after that, I will completely refund your purchase. Just select whether you are looking to Buy or Sell and the ticker symbol of the stock below and for $50 USD, plus tax, I will send you personalized analysis for a stock within 24 hours of the next trading day.
December 23, 2010
Here is sample brief on Apple that you won’t be able to get from Schwab or Fidelity. Their reports, while very thorough, won’t tell you if it’s good to buy right now or if not, then at what price.
AAPL – Want to Buy
Fundamental:
AAPL is currently undervalued relative to its sector, historical metrics and on absolute valuation as well. Based on it’s forward PE and long term growth rate, it looks to be almost 30-40% undervalued at the moment. The company sports a growth rate comparable to momentum names like CMG and FFIV, but is valued a significant discount to them. All this without backing out the almost $28 per share in cash that AAPL is sitting on. On its fundamentals, I would look towards the stock to be around 400, conservatively, by the end of the next fiscal year. If the retail investor returns and institutional investors have a good Q1 and Q2 in 2011, I can see multiple expansion in AAPL, pushing it up towards 450.
Technical:
AAPL had trouble earlier this fall breaking through the 320 level, after reporting a great quarter. It is now through that level and previous resistance at 320 has been a support level this month, also marking a good entry point. For most of December, AAPL has been trading sideways and consolidating around the 320 level. If it falls through 320, AAPL will next pick up support at 314 and then 300.
Conclusion:
I would open a position in AAPL at 320-321 and use any pullbacks to 314 and 300 as buying opportunities. If the outlook is measured in years and not months, I would be comfortable picking up shares here at the 323 level, though it pains me to pay up when I think I can get a better price.
