Tech Shares

displaced dub

Hi All

Im currently invested in both Amazon and Apple both of which are doing well for me, im looking to buy into a third.

Do any of you have any thoughts on any of the other heavy weights on the Nasdaq or the Dow??

Intel or Microsoft? Im scratching my head here big time.

Any help as always is appreciated.

D-Generate

Apple are an interesting one at the moment. For a consumer electronics company I think they are overvalued yet they keep going from strength to strength which goes against my current logic.

We all know that the majority of investment in Apple is quite flippant which was aptly demonstrated during Steve Jobs health scare. The price of the company plummeted as if Steve Jobs single handily made every decision in the company. So it makes me wonder, are people investing in Steve Jobs or Apple?

They design good looking products but pretty much every single component in the products is built by Foxconn or Intel. However if Apple fail with their next product launch or get pipped to the post by a competitor in a new development then they have no real basis on which to fall back on and the uneasy investors in Apple will sell sell sell. If you look at Foxconn who dominate the production of components for consumer electronics, they have seen a marked decrease in their value over the past year but surely if Apple are doing well then Foxconn should also be following tow.
Nonetheless, it is unlikely Apple's excellent design team will really get it so wrong to have a major crisis.

My real worry for Apple is that I believe that Apple could be hit with anti-trust case in the coming year. They are in a very similar position to MS when they were hit and have a massive share of the market. Apple like MS ship their product with a designated browser (Safari) and even more so, a designated media player (iTunes). Now Windows Media Player was a major factor in the anti-trust case brought against MS in the EU but WMP pales in comparison to iTunes due to the fact that iTunes ties you in to Apple being a retailer of media as opposed to Amazon/Napster etc. In effect, Apple by default tie you in to an agreement to purchase music/videos from them when you buy an Apple product.
If an anti-trust case was to begin, as with Steve Jobs health scare, it surely will wipe off a significant portion of the gains over the past while.

In short, Apple are overvalued and I think MS are probably a little undervalued but that is for another day.

pocketdooz

D-Generate wrote: »

Apple are an interesting one at the moment. For a consumer electronics company I think they are overvalued yet they keep going from strength to strength which goes against my current logic.

We all know that the majority of investment in Apple is quite flippant which was aptly demonstrated during Steve Jobs health scare. The price of the company plummeted as if Steve Jobs single handily made every decision in the company. So it makes me wonder, are people investing in Steve Jobs or Apple?

They design good looking products but pretty much every single component in the products is built by Foxconn or Intel. However if Apple fail with their next product launch or get pipped to the post by a competitor in a new development then they have no real basis on which to fall back on and the uneasy investors in Apple will sell sell sell. If you look at Foxconn who dominate the production of components for consumer electronics, they have seen a marked decrease in their value over the past year but surely if Apple are doing well then Foxconn should also be following tow.
Nonetheless, it is unlikely Apple's excellent design team will really get it so wrong to have a major crisis.

My real worry for Apple is that I believe that Apple could be hit with anti-trust case in the coming year. They are in a very similar position to MS when they were hit and have a massive share of the market. Apple like MS ship their product with a designated browser (Safari) and even more so, a designated media player (iTunes). Now Windows Media Player was a major factor in the anti-trust case brought against MS in the EU but WMP pales in comparison to iTunes due to the fact that iTunes ties you in to Apple being a retailer of media as opposed to Amazon/Napster etc. In effect, Apple by default tie you in to an agreement to purchase music/videos from them when you buy an Apple product.
If an anti-trust case was to begin, as with Steve Jobs health scare, it surely will wipe off a significant portion of the gains over the past while.

In short, Apple are overvalued and I think MS are probably a little undervalued but that is for another day.

Nice post. I think Apple would be a good one to buy 2011 puts on but I'm no tech expert.