Remember Jim Cramer and his Mad Money show that literally attracts a pool of loyal crazy followers? Well, he said now is the time to buy a house (in United States of course) and for that you should also buy Bank of America stock but I’m reluctant to listen to him because I think the housing problem is still not over yet. Jim also recommended Apple Inc. (Nasdaq: AAPL, stock) because technology stocks (that’s Nasdaq) are about to break out. I agreed with him that it would be a waste to buy QQQQ, the Nasdaq-100 or ETF of tech-stocks, when you can actually buy the jewel from the basket – AAPL.
But the main reason I toyed around with AAPL’s stock was because of the rumors that Apple is going to reveal something exciting next Monday at the World Wide Developers Conference. Sure, Steve Jobs will not be presenting but that’s good because we shouldn’t rely on just one person to move the company forward. Others can perform equally well in revealing the new iPhone, if indeed there’s going to be one. If you have not heard of Apple then maybe you should starting from now. It’s a company with almost $29 billion of cash on its balance sheet. That’s a lot of money dude.
Apple is so cash-rich that it’s still undecided whether to execute shares buybacks, give away dividends, shopping for more companies, start a new line of business or simply build a $1 billion datacenter in North Carolina. Maybe it could explore the option of using the money to sue PALM (just for the fun of it) which is going to announce its’ Palm Pre on Saturday – two days ahead of Apple’s conference. Apple claimed that PALM, Inc. (Nasdaq, PALM, stock) stole iPhone’s features but nobody believes Apple will sue PALM simply because the high-end smartphone market is already too crowded that Palm Pre will not cause any damage.
The battle is actually between Apple’s iPhone and Research in Motion Ltd.’s (Nasdaq: RIMM, stock) Blackberry so PALM would need more than Palm Pre to perform threesome *grin*. Google’s Android will enter the room by end of the year though. But there’re silent and loyal Palm users who have been waiting for this moment – the release of Palm’s high-end smartphone. I’ve to admit the new Palm Pre is pretty awesome as it was designed to tackle some of the limitations currently possessed by iPhone such as multi-tasking, physical keyboards, 3-Megapixel camera with flash, combines exchange, gmail and others inboxes and contacts and Amazon MP3 store built-in. However Palm is probably 12-months late into the segment and it would be interesting to see what’s in store from the new iPhone – provided there’ll be one next Monday.
For the time being it’s almost mission impossible to get existing iPhone consumers to dump their unit in favor of the new Palm Pre simply because the iPhone is still irresistible. iPhone is still a gorgeous phone but if you talk to technical analysts if you should buy Apple stock at the moment, they will most probably tell you to watch out for resistance and Fibonacci retracements, support, breakout and what-not. Anyway it is buy-on-rumors sell-on-news kind of trading strategy now. So take some of your profit before next Monday’s conference because Apple’s shares have rallied close to 80% since Jan so a sudden hard-landing could cost you dearly. Maybe you should start re-visit Palm’s stock.