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Apple_Store-300x230Apple (AAPL) announces a new iPhone Tuesday, Sept. 10. Earnings announcements and product announcements typically have me on the sidelines, but not this one —  regardless of the announcement, regardless of the movement of the stock Wednesday morning. Here are five reasons why I feel this way and five ways to play the announcement.

Apple is grossly undervalued. Based on trailing earnings or consensus projected earnings, AAPL is grossly undervalued, selling for less than half of its peers in the S&P 500, given what I see as its real growth in the next months: double digits in both revenues and profits.

The bad news is in the stock. There never was bad news about Apple, just earnings that were not spectacular. The stock sold off when it became apparent the company would not longer grow more than 25% a year forever with similar growth in profits.

The next 12-month period has several upside catalysts. Apple has been slow to announce new products that captivate Wall Street but this announcement could be the beginning of new iPhones, new iPads, Apple TV and modified phones for the Chinese and Japanese market. Apple is rumored to have deals with the largest carriers in Japan and China that, carriers have total subscribers of more than three-quarters of a billion users. That is billion with a “B.”

The new iPhone will be a hit. The new iPhone will come at a time of huge pent-up demand for a new iPhone. If the rumors of fingerprint recognition are true, it will quickly penetrate business as well as consumer markets.

Apple is taking market share, right now. Yup, that be the truth. Apple is again taking market share, according to ChangeWave Research (part of the 451 Group). Only so many people want to buy on the cheap — the iPhone is not only the best phone you can buy, it is a fashion and brand statement.

Here are five ways to play the shares.

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