Did You Miss that Miss?
Kyle is a member of The Motley Fool Blog Network -- entries represent the personal opinion of the blogger and are not formally edited.
Earnings misses from exceptional companies more often than not afford us some of the best opportunities to initiate a position with a stock, add to a core position, or even add to an entry that was made prior to the earnings miss. If you were one of the frightened little chickens that peeled some of your Apple (NASDAQ: AAPL), prior to yesterday’s earnings call, well, I hate that for you, I truly do. If you own the stock, and you missed the earnings call, shame on you. For the rest of us, a resounding Windows "ta-da".
I think my favorite moment of the call was when CEO Tim Cook casually said, “I don’t think this is a two-horse race” (in reference to iOS versus Android). Now there is confidence and there is cocky and Cook has both flying out all orifices of his body. Sorry, Android, in this pageant, you’re pretty much Miss Congeniality. Apparently I have one thing in common with Mr. Cook and his thoroughbred references, fortunately for him, that’s pretty much it. This guy isn’t afraid to “scoreboard” anybody, and referring to the Kindle Fire and Nook Tablet as “limited-function tablets”, was tantamount to a friendly, “in your face.”
So back to last quarter’s missed call (translation: missed opportunity – remember $360?). It’s my belief that Apple won’t see sub-$400 levels anytime soon in its lifetime. You can quote me on that, tar and feather me if it happens, call me names, put a “For Sale” sign in my front yard, whatever. Just realize, as I have said all along to anyone that listens, Tim Cook is Robin on steroids, to Steve Jobs’ Batman. It would have been nice to hear about a dividend, but to be honest, the gushing over their pipeline suits me just fine. Apple is one of those guys that calls the shots, folks. They don’t have to pay a dividend, so relax. And the offerings coming down the pike should provide plenty of quarterly stocking stuffers for shareholders.
Now just because Apple may seem to be “expensive” with regards to how much capital you have to invest, that doesn’t mean there aren’t other opportunities lying in wait. I mentioned in a popular blog which scored tens of readers that Cypress Semiconductor (NASDAQ: CY), was a potential play (“Did Your Name Make the List”). I’m not going to bore the 11 of you that may have scanned that fine piece of prose, let’s just say that I think there is still a definite run to be had with Cypress Semi. Cypress has their earnings call Thursday, and I am anxiously waiting to hear the sentiment and guidance almost as much as I am to hear their results. I have no position, but if Cypress were a girl, I could be arrested for stalking.
If you are looking for other possible opportunities after this joyous call, look no further than your handy, dandy Apple Supplier List. If you don’t have one just ask, I’d be more than happy to send it your way.
If you are late to the game with Apple, and you think the price is too high relative to your cash position, there is absolutely nothing preventing you from getting in on price “dips” on a piecemeal basis, grabbing what you can, when you can, with what you are comfortable spending. And there are pages of suppliers that are worthy of a look, not only because of this earnings call, but for many more to come.
So once all the chest-bumping and high-fiving in Cupertino settles down, we can get back to business and enjoy the future iPad3s we can now afford, thanks to being invested in the most innovative company around.
Until next time, from the trading table,
Kyle Metivier
Motley Fool newsletter services recommend Apple and Cypress Semiconductor . The Motley Fool owns shares of Apple. kmet312 owns shares of Apple. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
