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  • Is Apple Inc.'s (Nasdaq: AAPL) Bet on Liquidmetal About to Pay Off?

    Apple Inc. (Nasdaq: AAPL) loves to think of lucrative new uses for other people's bright ideas.

    For instance, the original iPod wouldn't have been possible without Toshiba's innovative 1.8-inch hard drive.

    And when Steve Jobs learned about Gorilla Glass in 2006, he convinced Corning to revive the largely unused technology so Apple could put it in the iPhone.

    So it's no surprise that Apple has been toying with yet another breakthrough technology.

    It's called Liquidmetal.

    Liquidmetal is a family of metal alloys that combines a variety of metallic elements. It's a technique that rapidly cools the mixture into a "metallic glass" with a distinctly different molecular structure than conventional metals. It becomes amorphous, as opposed to crystalline.

    That amorphous structure is the secret behind Liquidmetal's many remarkable properties.

    Now imagine what Apple could do with a material that:

    • Is five times as strong as aluminum and twice as strong as titanium;
    • Is three times as elastic as ordinary metals;
    • Is highly resistant to corrosion;
    • Is highly resistant to scratching and wear;
    • Has a fingerprint-resistant, glossy finish that needs no polishing;
    • And can be blow-molded like glass or injection-molded like plastic.
    And while most of the basic ingredients of Liquidmetal -- zirconium, titanium, nickel, copper, and beryllium -- remain the same, adjustments to the ratios and manufacturing process can customize the alloy for many different purposes.

    Invented in 1992 as part of a joint project between NASA, the California Institute of Technology and the U.S. Department of Energy, Liquidmetal creates vast new possibilities - particularly in the hands of a company as innovative and resource-rich as Apple.

    As NASA's web page for spinoff technologies puts it:

    "In the same way that the inventions of steel in the 1800s and plastic in the 1900s sparked revolutions for industry, [this] new class of amorphous alloys is poised to redefine materials science as we know it in the 21st century."

    To continue reading, please click here...

  • Apple Inc. (NASDAQ: AAPL) Q2 Earnings: iPhone Carries the Day

    Thanks to booming sales of the iPhone, Apple Inc. (NASDAQ: AAPL) Q2 earnings far outpaced Wall Street expectations.

    Apple earned $12.30 a share on revenue of $39.2 billion, compared to analyst expectations of $9.99 a share on $36.6 billion. In the year-ago quarter Apple earned $6.40 a share on revenue of $26.67 billion.

    Apple sold 35.1 million iPhones in the quarter, well beyond the 30.5 million analysts had projected.

    AAPL stock had fallen in recent days when U.S. carriers AT&T Inc. (NYSE: T) and Verizon Communications (NYSE: VZ) both reported significant declines in their quarterly iPhone sales. The reports raised concerns, unfounded as it turned out, that iPhone sales would miss.

    That's one reason why the news was greeted enthusiastically in after-hours trading. AAPL was up $41, or 7.29%, within 30 minutes of the earnings announcement.

  • Don't Be Surprised by Apple Inc.'s (Nasdaq: AAPL) Q2 Earnings

    Following its extraordinary beat last quarter, expectations for Apple Inc.'s (NASDAQ: AAPL) earnings are even higher than usual.

    With Apple having such an outsized influence on the markets, even investors who don't hold the stock will be watching for Apple's Q2 earnings report after the closing bell today (Tuesday).

    Still, with its stock having tumbled 11% in the past two weeks, from its peak of $640 April 10, Apple needs to beat Wall Street expectations.

    If Apple earnings disappoint -- as occurred in the September quarter last year -- the stock will get beaten down even further. Such negative news would push the stock toward $500.

    The consensus estimates for Apple's Q2 earnings are $9.99 per share on revenue of $36.6 billion, which most analysts believe is achievable.

    In fact, just in the past week several analysts, such as Shaw Wu of Sterne Agee and Bill Shope of Goldman Sachs, again raised their estimates for iPhone and iPad sales.

    However, Money Morning Chief Investing Strategist Keith Fitz-Gerald isn't so sure.

    To continue reading, please click here...

  • He Predicted the Apple (Nasdaq: AAPL) Sell-Off … Here’s What's Next

    The recent sell-off we've seen in Apple Inc. (Nasdaq: AAPL) shares came as a real stunner to Wall Street.

    But Strike Force Editor Keith Fitz-Gerald saw the sell-off coming.

    In fact, he predicted it.

    Back on March 27, Keith wrote a lead story for Money Morning in which he articulated seven very clear reasons that investors should consider shorting Apple's stock.

    And that was a couple of weeks after he detailed a "put" option strategy - in essence, a "short" trade - that resulted in a 47% profit (in just two days, no less) for the subscribers of his Strike Force trading service who followed his recommendation (a short-term reversal delivered those gains).

    I wanted to know what tipped him off that a reversal was coming - as well as what he was predicting for Apple's shares going forward.

    "BP, it was clear to me that this kind of reversal was coming - and sooner rather than later," Keith said during a private briefing late last week. "The shares had soared 75% in just five months - one analyst actually described the performance as "euphoric.' Suddenly, we're seeing all these mainstream-news-media stories explaining why Apple shares are going straight to $1,000. But I know from my own experience as a professional trader that even the shares of the best companies on earth don't go straight up. I happened to time it perfectly and help Strike Force subscribers take advantage of the reversal I just knew was in the offing."

    Key Questions for Apple Stock

    The way we see it, the Apple stock sell-off raises these three key questions for investors:

    • No. 1: What's going to happen to Apple shares in the near-term?
    • No. 2: If the stock is headed for a volatile stretch, is there any way to profit until the smoke clears?
    • No. 3: What's the long-term outlook for Apple - both the company and the stock?
    Having worked with him for five years, I've seen Keith make gutsy calls like this - and have them pay off big - time and time again. Since I knew you'd be as interested in his answers as I was, we wanted to share them with you.

    Here's what Keith had to say.

    To continue reading, please click here...

  • Will Apple Inc. (NASDAQ: AAPL) Keep Driving Technology ETFs Higher?

    Despite the recent selloff, shares of Apple Inc. (NASDAQ: AAPL) have skyrocketed 48% in the first quarter, dwarfing the 12% gain posted by the S&P 500.

    Apple's astonishing rise has also helped to underpin the Nasdaq Composite, which gained nearly 19% in the first quarter -- its strongest showing since 1991.

    But that's not the only place to experience the "Apple Effect."

    Many investors who own technology ETFs -- which hold almost 4% of all Apple shares outstanding -- were rewarded with even better returns.

    For instance, theVanguard Information Technology ETF (NYSE: VGT) was up 20.85% in the first quarter.

    Even better, the iShares Dow Jones U.S. Technology Index Fund (NYSE: IYW), was up 21.77%, thanks in part to Apple.

    Now the question is: Can Apple's momentum continue to drive technology ETFs higher?

    To continue reading, please click here...

  • Is Apple Stock (Nasdaq: AAPL) the Short of a Lifetime or the New Widow Maker?

    I have a confession to make.

    I believe Apple stock (Nasdaq: AAPL) is going to be world's first trillion-dollar company yet I want to short the snot out of it.

    Am I being compulsive?...impulsive?....or foolish?

    Perhaps it is all three considering that Apple has risen more than 3,000% in the last ten years, turning almost any attempt to go against the grain into a "widow maker" trade.

    I say almost because I am one of the lucky ones.

    A few weeks ago I recommended my Strike Force subscribers purchase put options on Apple, effectively shorting the stock. That resulted in a 47% profit in less than 24 hours for anyone who followed along, excluding fees and commissions.

    I'm not alone in my thinking.

    Uber investor Doug Kass, general partner of Seabreeze Partners Long/Short LP and Seabreeze Partners Long/Short Offshore LP, tweeted recently that he had covered "half his short" on Apple following the announcement of their dividend and buyback plan.

    Given that the stock had run up to nearly $608 a share before the announcement, presumably Kass had banked some gains, too.

    To continue reading, please click here...

  • How to Earn a 9.25% Gain in 30 days While Waiting for Apple's
    (Nasdaq: AAPL) Dividend

    Although it's been one of the market's darlings for a decade now, dividend-oriented investors have long shunned computer giant Apple Inc. (Nasdaq: AAPL) because, well ... it didn't pay one.

    That, coupled with AAPL's historically high share price, has always kept me from buying Apple stock - but, as a trader, it hasn't kept me from generating income with Apple options.

    Last week, the cash-rich company finally took a step toward rewarding loyal shareholders by declaring a dividend - a quarterly payout of $2.65 a share, beginning with the fiscal fourth quarter, which runs from July 1 to Sept. 30, 2012.

    Assuming the payouts continue, which they almost certainly will, that means Apple's annual dividend in fiscal 2013 will be $10.60 a share, which sounds fairly rich - except for one thing...

    At its closing price of $599.34 last Thursday, Apple remains one of the market's highest-priced stocks, meaning the new annual dividend of $10.60 will equate to a yield of only 1.76%.

    That's decent, but it's hardly near the top of the income-stock ranks. Plus, it'll be well over a year before you can collect the full dividend.

    Fortunately, by using options, you can easily generate some significant income while waiting for Apple's new dividend to kick in - and multiply your yield at the same time.

    Let me explain...

    To continue reading, please click here...

  • New Apple Dividend Will Help Push Shares Higher (Nasdaq: AAPL)

    A new Apple Inc. (Nasdaq: AAPL) dividend will make the stock even more attractive while expanding the pool of potential investors.

    Apple announced Monday that starting in September, it will pay a $2.65 quarterly dividend.

    Apple also announced a $10 billion stock buyback program to be conducted over three years, beginning in September.

    The stock buyback was a bigger surprise to analysts. While too small to move the stock significantly, Apple CEO Tim Cook said the intent is to avoid earnings-per-share dilution from future shares issued to reward employees.

    The Cupertino, CA company's enormous pile of cash and investments - over $97 billion as of the end of 2011 - had led to increasingly strident calls for an Apple dividend in recent years.

    Yet despite today's investor-friendly moves, some think Apple could have done more.

    To continue reading, please click here...

  • Apple Stock (Nasdaq: AAPL) at $600: Too Far Too Fast?

    After Apple Inc. (Nasdaq: AAPL) touched $600, it set off speculation about whether the stock is truly worth $600 a share.

    Some consider Apple's parabolic run-up in price as a warning sign of a bubble. In December Apple was still trading under $400.

    Others look at the escalating sales growth of such Apple products as the iPhone and iPad and see justification for a $600 stock, a $700 stock, or even higher.

    So we at Money Morning thought it would be worth comparing Apple's annual earnings numbers with the rise in its stock price since 2006, the year before the iPhone debuted.

    Click here to continue reading...

  • Tech Stocks to Watch: Cisco (CSCO), Apple (AAPL), Demandware (DWRE)

    Tech stocks continued their all-star year yesterday (Thursday) with a Cisco Systems Inc. (Nasdaq: CSCO) deal, a new intraday high for Apple Inc. (Nasdaq: AAPL), and an explosive first-day performance for Demandware Inc. (NYSE: DWRE) moving markets.

    The tech-heavy Nasdaq closed up 0.51% to 3,056.37.

    Here's why these are the tech stocks to watch today (Friday):

    Cisco Systems (CSCO) makes play for video: Cisco Systems Inc. (Nasdaq: CSCO) announced a $4 billion deal with video-software specialist NDS Group Ltd, a small company based outside London.

    To continue reading, please click here...

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