Friday Night's Show Highlights:
Apple reports Monday and may lead the way for the week... But own AAPL don't trade it!
Friday, April 24, 2015
Providing show recaps for Wed, Thurs, Fri, including verbatim Game Plans and Lightning Round stock picks...
Jim: Alright, you hear a ton about how this earnings season's been disappointing. I say this - I say don't tell that to anyone who owns Amazon, Google, Microsoft, or Starbucks, because these stocks exploded higher today on better-than-expected earnings.
And last I looked, those are some pretty darned important big stocks. And they helped propel the averages today with the Dow advancing 21 points.
So why don't we do this. Let's stop it with the woeful earnings, and start taking advantage of the opportunities where we can find them.
We kick things off with the most important earnings report of all. And that's Apple, which announces its quarter after the close next Monday, and we'll be out in San Francisco.
We'll be like "Apple Central." Just in case you're a martian watching the show for the first time, let me say, I believe in owning Apple, not trading it. Owning! Not trading. As long as Apple remains cheaper than the average stock of the S&P 500, and it is appreciably cheaper... as long as it has that beautiful balance sheet with a huge dividend and big buyback... as long as CEO, Tim Cook, and company, keep creating breathtaking products... I'm not changing my view! I'm not counting the number of phones or watches sold, to make some sort of trading decision here about what to do with Apple. I think the watch will be a big hit over time, with lots of fabulous programs written for it, particularly healthcare programs. I have a loaner (holding up his left wrist to the camera, showing he has the recently-released AppleWatch on his wrist), and let me just tell you something. You see this arm? You'd have to saw it off right here, if you want to get my loaner! So what should you do if maybe you own Apple? Nothing! Oh, what do you do if you don't? Simple. You wait for some analyst to be disappointed with the quarter... some guy who just is just too short term for my taste... and you seize the moment to buy the stock at an underserved discount the moment that this guy says, "sell." These Apple analysts seem to crave the downgrade. There's always someone wanting to call the "big top"... the "big top" call at Apple. That will be your chance, with so much ahead... new phones, ApplePay, the Watch, maybe AppleTV. You need to own the stock, just like my charitable trust does, where you can follow along by subscribing to ActionAlertsPlus. I wish there were more to it. Own it. Don't trade it...