360 Degrees of Apple

Let's stipulate further that Apple could gain a 5% market share of global handset shipments. That would work out to 40 million units at $145 or $5.8 billion in revenue. At that level, handsets would almost match the size of the current iPod and Mac businesses. In other words, the top-line could grow by almost one-third from a successful handset product. Granted operating margins in this business are below Mac, and probably iPod, levels but the revenue potential is huge.

Gaining market share in PCs and cell phones is incredibly difficult. Competitors are entrenched and top notch. Apple could fail. But as an investor, how many opportunities really exist in mega-cap stocks for the type of growth Apple could sustain? Very few. And don't forget, iPods are still a growth industry with unit volume growth north of 40% likely in 2006. Plus iPod accessories. And maybe that digital media hub. You get the idea.

At the time of publication, Birenberg was long Apple and Motorola, although holdings can change at any time.

Steven Birenberg, CFA, is president and chief investment officer of Northlake Capital Management, LLC. Northlake specializes in managing equity portfolios using a combination of exchange-traded funds and special situation stocks.

The Swing Trader: Early Warning Signal by Alan Farley

Apple Computer rallied strongly from $70 to $86 in December, the latest leg of its long-term uptrend. Following its Jan. 18 earnings release, it retraced 100% of that rally, before finally bouncing earlier this week. This decline completed a "first failure" early warning signal that predicts the uptrend has finally ended.

I would sell Apple as it bounces into the Jan. 19 gap at $82, in anticipation of a breakdown below this week's low at $70.87.

Alan Farley is a professional trader and a contributor to RealMoney. Alan is also the author of the book The Master Swing Trader and operates a Web site related to swing trading (HardRightEdge.com). He also produces a premium product for TheStreet.com called The Daily Swing Trade.

Apple's Secret Hiding Place by Troy Wolverton

This is an excerpt from a column originally published Jan. 30 on TheStreet.com.

If you want an idea of what's next to come out of Apple Computer's idea factory, you might want to look to Hong Kong. Or maybe Singapore. Or possibly even Europe.

But you don't need an airline ticket. Instead, you can take a virtual trip on the Internet to the trademark offices of those countries and areas. Do a search for "Apple Computer" and you'll come up with all the phrases and images Apple has trademarked -- or applied to trademark -- in recent years.

For many of Apple's recent products and services, such as the iPod shuffle and nano lines and the Aperture photo-editing program, the company had filed a related trademark in locales far from its Cupertino, Calif., headquarters months before they were launched.

Of course, some of the trademarked images and phrases have yet to show up in actual Apple products -- and some never may. But the trademarks and filings not yet assigned to an actual product give a potential glimpse into what the company has in development.

And that continuing development is key. Although the popularity of the iPod has revived Apple in the past three years and sent its stock soaring, many investors are counting on the company to expand its product lineup in coming years to help continue its rapid growth.

Click here to read senior writer Troy Wolverton's full story.

In keeping with TSC's editorial policy, Wolverton doesn't own or short individual stocks. He also doesn't invest in hedge funds or other private investment partnerships.

What's the next stock to get the "360 Degrees" examination? You decide. Select from these choices and look for the column next Thursday.
	Amgen Time Warner Boeing Valero Energy

>To order reprints of this article, click here: Reprints