Nov 14 2006
Various Wall Street pros was talking about the run blue-chip stocks are poised to have for the coming year 2007. Blue-chip is defined as low-risk with high-reward stocks for decades long of investing simply because it will performs. But does this statement still holds ?
What would you think if the votes go to Apple ? But hey, Apple does not yet pay dividend and it trades at a high 37 times earnings. Remember, the platform of blue-chips is changing. In fact the way blue-chips are going to be defined will need to be re-write.
Apple is the dominating force in the digital-music world with iTunes and the iPod. And Apple is gaining market share in the U.S. PC market. Moreover, with the potential for an iPod phone or an iTunes for movies, Apple’s dominant positioning and growth potential are both here to stay. Apple stock is commanding a 20% five-year growth estimate.
Ask previous generation about General Electric (NYSE :
GE), Ford (NYSE : F), AT&T (NYSE : T) or Telekom Malaysia (Bursa Malaysia : TM). If these traditional blue-chips does not guarantee an ever-lasting growth in the shape of continuous higher stock price year-in year-out, then what type of blue-chips look like today ? Are we looking at giants such as Google (NASDAQ : GOOG), Apple (NASDAQ : AAPL) or McDonald (NYSE : MCD) ?
What would you think if the votes go to Apple ? But hey, Apple does not yet pay dividend and it trades at a high 37 times earnings. Remember, the platform of blue-chips is changing. In fact the way blue-chips are going to be defined will need to be re-write.
Apple is the dominating force in the digital-music world with iTunes and the iPod. And Apple is gaining market share in the U.S. PC market. Moreover, with the potential for an iPod phone or an iTunes for movies, Apple’s dominant positioning and growth potential are both here to stay. Apple stock is commanding a 20% five-year growth estimate.Some of Apple 2005 Product Launches
- iPod shuffle
- Mac mini
- iPod mini (2nd gen)
- iMac G5 (Ambient Light Sensor)
- iPod (color)
- iPod nano
- iPod (with video)
- PowerBook G4 (Dual Layer SD)
Some of Apple 2006 Product Launches
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MacBook Pro
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iMac (Early 2006)
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iPod (with video, U2 SE)
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iPod nano (Second Generation)
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iPod shuffle (Second Generation)
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MacBook Pro (17-inch)
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iMac (Early 2006)
Now, which traditional blue-chips can match that ? In the voting recently, Microsoft (NASDAQ : MSFT) finished second in the Best Blue Chip for 2007. Other runners-up being oil refiner Valero Energy (NYSE : VLO), health-care icon Johnson & Johnson (NYSE : JNJ), and consumer-products kingpin Procter & Gamble (NYSE : PG).
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November 14th, 2006 by financetwitter
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